Diamond production at Rockwell's operational mines in South Africa fell 33 percent year on year to 4,824 carats in the first quarter that ended on May 31. The lower level of production resulted from operations at the Tirisano mine being placed on care and maintenance in December 2012 and due to the sale of the company's Klipdam mine at the end of March. Rockwell sold Klipdam for $2.6 million as a non-core asset, in a move to use proceeds to ramp up production at its Middle Orange River operations. Production at Klipdam plunged 81 percent to 535 carats in the quarter until the sale agreement was concluded.

"Rockwell's operational performance for the first quarter of fiscal 2014 reflects the transition of the company as we have narrowed our focus on growing the production profile, from specific footprints that deliver better efficiencies and greater economies of scale," said James Campbell, the CEO of Rockwell.

Production at the company's Saxendrift mine declined 4 percent to 2,036 carats. The company noted that it recovered nine stones exceeding 20 carats in April, four of which were larger than 50 carats. A total of 1,118 carats were produced from Saxendrift tailings operations.

During the period, the company increased production at its Saxendrift Hill Complex mine and recovered 269 carats, including a number of high-quality diamonds. The ramp up was in line with Rockwell's strategy to mine the two-year resource on a block basis, with mining in the first quarter from a lower-grade block. The company said that its Niewejaarskraal operations are being commissioned within three months of presenting the project proposal to the board. The company intends to have three producing mines in the Middle Orange River by the end of 2013.

Meanwhile, three royalty mining contracts were in effect on the Tirisano property during the first quarter, operated by two privately owned alluvial diamond mining operators. A total of 1,984 carats were recovered from the mine. The company awarded two additional contracts which is expected to lead to increased production volume by the end of 2013.