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16 MODERN MININGMay 2016
MINING News
In its quarterly production and sales
update for the three months ended
February 29, 2016 (Q4 FY2016), Rockwell
Diamonds, listed on the TSX and JSE, says
it continues to pursue its medium term
target to process 500 000 m3 of gravel per
month in the Middle Orange River (MOR).
MOR carat sales were up 22 % quarter-
on-quarter and the value of these goods
increased 34 % to US$7,1 million (exclud-
ing beneficiation).
In terms of volumes, MOR gravel pro-
cessed was 1 % down quarter-on-quarter
due to lower production volumes at RHC
(the Remhoogte-Holsloot Complex) and
Saxendrift during the rainy season and
over the December closure. These were
chiefly offset by higher contractor pro-
duction volumes.
Gravels processed were 40 % down
year-on-year owing to the changed
operational profile, with new produc-
tion from RHC only partly compensating
for the drop in volumes following the
sale of Tirisano, the suspension of activi-
ties at Niewejaarskraal and the depletion of
resources at Saxendrift.
Overall, grades were up both quarter-
on-quarter and year-on-year. RHC recorded
significantly higher grades of 1,12 cphm 3,
compared to 0,64 cphm3 in the previous quar-
ter, but on slightly lower volumes.
Average carat price realised from the
company’s MOR projects improved by 9 %
quarter-on-quarter, to US$1 448 per carat.
During the fourth quarter of fiscal year
2016, the company implemented a number
of the decisions that had arisen from the stra-
tegic and operational review of the business
conducted in late 2015. Among the steps
taken are the following:
 Saxendrift operations – company directed
operations continue to wind down; a
change in the operational parameters has
allowed closure to be postponed beyond
the planned end of February to May 2016.
 Saxendrift royalty mining contracts – the
second of the three-year royalty mining
contracts entered into by Rockwell com-
menced post February 2016. Rockwell
is assessing further royalty proposals to
continue to extract further value from the
Saxendrift property. All diamonds recov-
ered by royalty miners at Saxendrift will be
sold by Rockwell through its sales system
and 10 % of gross sales will be retained by
the company as a royalty.
 Start-up of Wouterspan – the recommis-
sioning of Wouterspan and redeployment
of existing processing and mining equip-
ment from other operations began early
in Q1 FY2017 as planned. Work on the
construction of the processing plant is on
schedule to deliver a plant and IFS capable
of processing 200 000 m3 per month by
September 2016, with ramp-up commenc-
ing late May 2016.
 Closure of Head Office – Rockwell’s
Johannesburg corporate office has been
closed, staffing reduced and key senior
company executives have relocated to the
MOR on a full-time basis.
 Corporate structure – operational report-
ing structures have been streamlined; mine
management is now directly accountable
for all mine operations, reporting to the
CEO who is based full-time in the MOR.
Commenting on fourth quarter produc-
tion and sales, James Campbell, CEO and
President, said: “After a very difficult operat-
Rockwell’s carat sales 22 % up quarter on quarter