DiamondCorp, the JSE- and AIM-listed diamond mining company active in South Africa, on Thursday said it sold 19 214 carats of gem diamonds at tender in Johannesburg for US$1.16-million, achieving an average price of $61 per carat.

Providing an operational update for the first six months of 2008, the company said 27 103 carats of diamonds were recovered from its Lace tailings re-treatment in the first six months of 2008. This includes a 34.84 carat non-gem diamond.

"Recoveries averaged 6.1 carats per hundred tonnes and approximately 70 percent of diamonds recovered were gem quality," DiamondCorp said.

The company's 74 percent-owned Lace diamond mine is located in the Free State and comprises the Lace kimberlites, which have the potential to support a 20-year underground mining operation, and tailings re-treatment activities, which are being undertaken while access to the underground is established.

"DiamondCorp's operations have progressed significantly over the past six months," said DiamondCorp CEO Paul Loudon.

First pass recoveries from the tailings re-treatment operation are now in line with original estimates and issues with power supply and the re-crush circuit have been addressed, he said.

"At the same time, the development of the Lace underground project is now 14 months ahead of the original schedule, with initial kimberlite recovery from the Lace Satellite pipe expected by September 2008," Loudon said.

By 11am shares in DiamondCorp had not traded after its last close of 13.90 rand.

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