Kimberley Diamonds (ASX:KDL) has announced it plans to reopen the Ellendale E4 operation in Western Australia. This move will double the output at Ellendale from 120,000 carats last year to approximately a quarter of a million per year and in excess of 300,000 carats in 2015, based on the guidance of 200,000 carats from Ellendale E4 that year. The decision to open E4 again will obviously result in economies of scale which should have a positive effect on the operating costs of the mine.
The E4 mine has been placed on care and maintenance five years ago because of the relatively low grade of just 6.66 carats per hundred tonnes in the indicated resource estimate.
> Click here to read the press release
Disclosure: The author holds no position in Kimberley Diamonds. Please see our disclaimer for current positions.
