Paragon Diamonds (PRG) revealed a narrowing loss for the first half of 2015, as it moves toward completion of the deal to acquire the Mothae kimberlite mine from Lucara Diamond Corp.
Paragon said an independent study on Mothae exceeded management's initial expectations and established a lower strip ratio than originally anticipated, which means the deposit will be cheaper to operate, with potential diamond values up to $2,000 a carat.
The miner is targeting first production at Mothae six months after the completion of the acquisition, followed by first production from its existing project - the Lemphane kimberlite pipe project - in the first half of next year. Paragon expects to generate around $36m (£23.7m) in the first year of production from the two Lesoto mines, rising to $60m a year thereafter.
