Rockwell Diamonds Inc. updated its preliminary economic assessment on its Wouterspan alluvial diamond property, which is located on the opposite side of the Orange River from its Saxendrift diamond mine in South Africa. The assessment resulted in positive enough economics to take the project through a detailed design stage.
model yielded an internal rate of return of between 45 percent and 70
percent. The net present value for the base case was $91.71 million at a
15 percent discount rate, yielding a project payback period of 2.3
years from the start of construction or approximately 1.3 years from
commencement of diamond production, according to Rockwell. The project
is most sensitive to revenue with a 5 percent variance in the total
revenue over a 10 year life of mine, impacting the net value by 15
percent. The operation is expected to employ 300 people.
of this study on Wouterspan is a critical milestone in Rockwell's
strategy to unlock the growth potential of its Middle Orange River
projects. The property was successfully mined in the past using pan
plants. We now have access to more efficient fit for purpose
technologies such as the bulk X-ray system that we have incorporated
into the new plant design,'' said James Campbell, the CEO of Rockwell
''The study's results are based on what we are achieving
in other areas of our operations. The project capital is expected to be
some $42 million, including a 25 percent contingency, with the
potential to come in substantially lower. The team that conducted the
Wouterspan study was instrumental in more than halving the eventual
capital budget required to recently bringing on stream a new kimberlite
mine in Botswana, compared to initial estimates.''