African diamond mining and exploration company DiamondCorp plc has recommenced mine development in South Africa and resumed exploration activities in Botswana following the successful completion of its recent £7.1 million (US$10.9 million) capital raising.

Development activities have resumed at the Lace diamond mine, 200km southwest of Johannesburg, near Kroonstad in the Free State Province of South Africa.

Activities for the remainder of 2010 will focus on the completion of a 4.5m x 4.5m decline to access kimberlite resources below the -240m level, the lowest level of historical workings at the Lace mine. The decline is budgeted to cost £4 million (US$6.1 million) and be completed in the first quarter of 2011.

DiamondCorp Managing Director and CEO Paul Loudon says, “Following one of the most difficult years on record for the diamond sector, we have been able to keep the 1.2 million ton per annum recovery plant and full underground mining fleet in place and in good working order, in readiness for a rapid restart of activities. We look forward to accessing the potential 13 million carats in resource at Lace in early 2011, and building up to a potential production of between 400,000 and 500,000 carats per annum at the same time as the long-term metrics for the diamond industry continue to improve.”