DIAMOND PAGE — Klipdam boosts profit for Sonora

Toronto-based Sonora Diamond (SON-T) saw losses turn to profits this past quarter, as the Klipdam mine ramped up to full production levels.

The quarter ended Sept. 30 was the first in which Klipdam, which began producting diamonds in August 1996, has operated at full design capacity.

During the quarter, 2,381 carats were produced, and roughly the same number were sold, for US$2.02 million. The average price per carat was quite high, at US$800.

The level was maintained in October, when roughly 900 carats were produced.

In September 1996, Sonora Diamond (then known as Sonora Gold) acquired Bermuda-based Windsorton Mining, owner and operator of the Klipdam mine, where commercial production began last February.

As of December 1996, the paleochannel resource at Klipdam was estimated at 10.9 million tons grading 1 carat per 100 tonnes. The plateau gravel deposits at Klipdam were estimated to hold 6 million tonnes averaging 0.5 to 1 carat per 100 tonnes.

At current production rates, reserves at Klipdam will last for about 10 years.