Paragon’s Mothae Study Reveals Potential Average Diamond Prices up to $2,000 Per Carat

(IDEX Online News) – Paragon Diamonds PLC has revealed that two independent studies it carried out have revealed extremely positive results, regarding the potential recovery of large high value diamonds at the Mothae Kimberlite Resource.  

The studies suggest that Mothae, which is located in Lesotho, and for which the company is trying to complete a 75 percent transfer from Canadian miner Lucara Diamond Corporation, has the potential to return average diamond values of up to $2,000 per carat.

There was also an indication that the strip ratio would fall below 1:1 compared with the previously assumed 1.5:1, which would make the mine more profitable. It is estimated that this will save the miner $1 to $2 per ton of ore.

The studies also analysed several mining scenarios, including exceeding 2 million tons of ore at a projected value of $40+ per ton of ore, with a hypothetical production of 40,000 carats.

"The conclusions exceed management’s initial expectations...that Mothae represents a low cost opportunity for Paragon to generate significant value for shareholders through the potential recovery of large high value diamonds. Mothae is only 5 kilometers from the world class Letšeng diamond mine in Lesotho which is located within a cluster of kimberlites, including Paragon’s Lemphane Kimberlite Pipe Project," said a Paragon statement.