During the quarter ending February 28 1998, the company focused on the build up of its mining operation off the coast of Namibia and on finalizing the marketing arrangements for its production goods.
The first diamonds were recovered from the Koichab prospect of the Luderitz Bay concession during the quarter. The NamSSol mining system was deployed on the margin of this high grade deposit in thin sediment layers of approximately one to two metres. The diamond recoveries from the start-up phase of its mining operation were encouraging, yielding an average diamond size of 0.45 carats with the largest stone weighing 2.83 carats. At least 95% of the diamonds are gem quality.
Operating experience showed that modifications were required to the production controls of the NamSSol mining system and to speed the cycle of the launch and recovery system. Modifications were carried out in Cape Town subsequent to quarter end at a cost of approximately US$750 000. MV Kovambo returned to station in Luderitz Bay on April 13 1998.
During the period an examination of the company’s security systems and procedures onboard MV Kovambo was carried out by the Namibian Protective Resource Unit. The company earned an outstanding commendation.
During the period a three year marketing agreement was concluded with IDC (Holdings) Ltd, a private company based in London and Antwerp. IDC has been established in the diamond industry for over a century and has acted as distributor for Aredor in Guinea and for Endiama in Angola, among others.
The company’s diamonds will be valued by Namibian government valuers and
shipped to Antwerp in cycles of approximately five weeks. In Antwerp IOC will re-grade, evaluate and assort diamonds for sale at highest market price in a method suitable to prevalent marketing conditions.
