Paragon Diamonds Finance Boss Reports Significant Progress at AGM

Paragon Diamonds Ltd has had a year of significant progress as it moves closer to its goal of transforming into a cash-generative diamond exploration and production company in Africa.

Simon Retter, the Company’s Chief Financial Officer, was due to make an upbeat statement at the company's Annual General Meeting scheduled to be held today.

In a statement, he said: “We have a solid portfolio of multi-stage projects in world-class diamondiferous regions of Africa where we be believe we can deliver significant value for shareholders.”

In Lesotho, the AIM-listed company’s flagship large stone/high value Lemphane kimberlite project is on course to commence production in the near term.

He said that Paragon’s other diamond projects in Botswana and Zambia provide a highly prospective pipeline which the company would look to advance along the development curve.

“In addition we continue to evaluate strategic and corporate opportunities to diversify our offering and will expose our shareholders to as much of the value chain as possible,” he said.

Lemphane is believed to be the last world-class kimberlite to be developed in Lesotho and is located close to Gem Diamonds’ Letseng pipe which is renowned for the recovery of exceptionally large and valuable diamonds.  

Results from an independent size frequency and revenue modelling report highlighted that preliminary diamond values from Stage 1 production would be between US$930 – US$1,025/carat for grades of 2 carats per hundred tonnes while the size frequency study indicated that 12 percent of carats will be over 9cts.

Significantly, the report predicted the recovery of exceptionally large sized diamonds of 100+ carats, even in the early stages of production. 

Retter said: “The remainder of 2014 looks to be a highly exciting period for Paragon Diamonds as we move to stage 1 production, subject to completing financing. 

“We expect to report on further drilling at Lemphane and also a scoping study which we expect will upgrade the already attractive economics of Lemphane.”