Years Production	Carats (millions)
<1917 - 1920	0.16
1921 - 1930	1.61
1931 - 1940	7.30
1941 - 1950	15.00
1951 - 1960	23.34
1961 - 1970	37.60
1971 - 1980	13.32
1981 - 1990	9.63
1991 - 2000	16.31
2001	5.16

Diamond Production Summary for Angola

Diamond trading is exclusively carried out by ENDIAMA or by mixed companies to be formed expressly with the specific object of trading to safeguard the rights of producers. Export of diamonds is subject to valuation by ENDIAMA and, if desired, by an independent valuer. Diamonds recovered from artisanal mining are traded by ENDIAMA or a mixed company specially formed for diamond trading.

Diamonds from Angola were known from the second part of the 16th century, but only in 1912 was the first diamond found and recorded in north-eastern Angola. The first kimberlite, Camafuca - Camazambo, on the Chicapa River, was discovered in 1952. Subsequently more than 600 kimberlites were identified. During the colonial period, the only hard rock source of diamonds mined by DIAMANG was the Camutue West pipe, which was worked continuously between 1961 and 1974 by open pit methods to a depth of 50 metres.

Following independence in 1975, DIAMANG's role was taken over by the Empresa Nacional de Diamante de Angola (ENDIAMA - incorporated 15th January 1981). ENDIAMA developed by using contractors and more recently Joint Venture Partnerships, e.g. SDM with Odebrecht of Brazil and Almazy Rossi - Sakha of Russia. Formal records of diamond production in Angola reflect the country's history.

 

The proposed initial diamond recovery plant is typical of alluvial recovery plants in operation in Africa and other parts of the world. The plant will be modular (to enable relocation if necessary) and compact in design to enable ease of transport. No new technology will be required for the recovery of diamonds.

Final plant configuration and size will be dependant upon typical gravel size distribution, clay properties and the suite of minerals present. Metallurgical test work will be necessary to confirm plant configuration. To achieve this, a bulk sample will be taken and sent for testwork to determine final design.

Mobile diamond recovery plants are common place in Africa. Signet Engineering and Dowding Reynard & Associates Pty Ltd (DRA) of South Africa are experienced in constructing, transporting and erecting modular diamond plants in short periods of time (e.g. River Ranch, Zimbabwe; Williamson Mine, Tanzania).

For thirty six (36) months after full production commences, NMR will receive 30% of the profit before distribution to the shareholders, with the balance (70%) being payed based upon share in the project. The effective profit distribution for the 36 month period is set out in the table below. After the initial 36 months, profit distribution will revert to the percentage share of the project.

 

Using the known resources and preliminary costing for mining equipment, processing plant and running costs a financial analysis for the project has been prepared. Production has been based upon initial processing of 660m³ per day at an average grade of 0.627 carats per m³ and 80% recovery. This will result in initial production of 10,000 carats per month rising to 20,000 carats per month after six (6) months of mining when processing rates double. The doubling of production will be achieved without additional capital expenditure and be based upon the increased utilisation of existing plant.

From this analysis it is expected that the project will pay back capital expenditure and be operating cash positive three (5) months after the commencement of operations. A monthly operating profit (after ENDIAMA royalty) of US$1.0 - 1.2 million (depending on exploration activity) is forecast rising to US$2.5 million with increased production.