Promoters of AK6 Mine in the Boteti sub-district, Lucara Diamonds, say they have completed construction of a diamond sorting, sales and marketing infrastructure in Gaborone as the commissioning of the mine draws near. In a statement, the company - which will sell some of its production by open tender - says construction of the mine is now at 84 percent complete, with commissioning slated for the first quarter of next year.

"Excellent progress was made on the development of the AK6 project," reads the statement. "The continued focus on safety, health and environment by Boteti, the EPCM contractor and all sub-contractors resulted in 220,000 hours worked with no lost time, injuries or environmental incidents.

"As of the end of September the project had worked 809,474 hours. In Gaborone, the sorting, sales and marketing offices have been completed and senior sorting personnel have been recruited. The stock control software platform has been selected and operational procedures are being developed."

The company was last year awarded a new 15-year mining licence with diamond marketing terms that allow it to sell its entire production of diamonds through an open tender process and/or negotiated exclusivity contract, subject to valuation by the Government Diamond Valuer.Under the previous licence that was owned by African Diamonds, all the mine production was to be sold through the Diamond Trading Company. During the third quarter, Lucara says engineering, procurement and fabrication were essentially completed in support of construction activities. The project is still trending within the initial capital budget, with expenditure at end of September at 46 percent of budget out of a total of 83 percent of the approved capital budget committed. In addition to the civils, structural and mechanical activities, building works, piping and electrical installation contractors commenced work on site.

"The AK6 sub-station is currently being commissioned and the overhead power line from the Orapa sub-station to site has been completed," the Lucara statement continues. "The permanent tie in at the Orapa sub-station will be completed before the end of October. Initial grid power for commissioning activities will come from a temporary tie in to the Letlhakane line by end of October."With AK6 Mine in Botswana and Mothae Mine in Lesotho as its key assets, Lucara is well positioned among emerging new diamond producers. The 75-percent owned Mothae Mine is currently at trial mining stage. Both Mothae and AK6 are world-class assets with tonnage and throughput upside.

Diamond values from both countries could significantly increase with continued recovery of Type IIA and large stones. The company says recruitment of Boteti operational staff was progressing well and that all senior positions have been filled with Batswana.

AK6 Mine, which is 100 percent owned by Lucara, will ramp up to full production in early 2012 to deliver over 400,000 carats of high quality diamonds in its first year of operation. It is expected to have a throughput of up to three million tonnes a year in the first phase of development, instead of two million tons a year as previously anticipated.