Merlin to Double Ore Processing Capacity with New Scrubber
ASX Announcement 23 August 2018
Australian diamond mining company Merlin Diamonds Limited (ASX: MED) (“Merlin” or “the Company”) reports that with the scaling up of mining activities at the Merlin Diamond Mine in the Northern Territory, ore processing capacity will double with the installation of a new scrubber.
Processing will increase from the 50 tonnes per hour to 100 tonnes per hour, thus doubling the production of diamonds. The new scrubber, screen and conveyor belts are being prepared for shipping and are expected to arrive at Merlin in late August. Merlin’s team conducted a final inspection last week prior to shipping (see figures 1-4 below).
The scrubber will also significantly reduce the recirculation of oversize material and give Merlin the ability to feed damp ore directly from the pit.
As well, Merlin has purchased a jaw crusher which will be introduced into the processing circuit to treat the trommel oversize material (see figure 5).
As previously advised, a Dense Medium Separation (DMS) circuit has also been ordered from South Africa, and once installed, capacity will increase upwards of 150 tonnes per hour.
Further updates on mining operations will be provided shortly as mining contractor Rusca Bros Services ramps up activities at site.
PINK DIAMONDS DISCOVERED AT MERLIN MINE
ASX Announcement 23 August 2018
Merlin Diamonds Limited (“Merlin”) (ASX: MED) is pleased to announce that 32 pink diamonds totalling 6.639 cts have been recovered from mining operations at the Merlin Diamond Mine in the Northern Territory (see figure 1 overleaf).
The Company is encouraged by the discovery of these pinks at Merlin and it is a good indicator that more significant discoveries will be made as mining in the five pits - Excalibur, Gwain, Ywain, Ector and Kaye - commences.
Mining operations are expected to ramp up significantly this quarter as contractor Rusca Bros Services begins extracting fresh ore from the first pit. Further diamond discoveries will materialise.
The Company will provide shareholders with further updates shortly.
Merlin Diamonds Ltd is owner of the Merlin diamond mine, in the Northern Territory, Australia. The Merlin Diamond Project comprises the Merlin Diamond Mine operations and the surrounding exploration tenements totalling approximately 2,154 km² which effectively encompasses the known extent of the Merlin kimberlite field.
The Merlin Diamond Project is located some 100 km south of the settlement of Borroloola and comprises 14 kimberlite pipes, grouped into four clusters. Nine of these pipes were subject to open-pit mining over a 5 year period commencing in 1998. The operations ceased in 2003 having produced 507,000 carats of diamonds. During its short operational life, Merlin Diamond Project was renowned for the production of top quality white diamond and large specials, the largest being 104.73 carats. Merlin Diamonds Pty Ltd, formerly North Australian Diamonds, acquired the project from the Rio Tinto group in 2004. In 2012, part of the latest parcel has been sold on international markets generating proceeds of US$1.865 million.
The Merlin Diamond Mine undertook pilot production in 2013. The Company is also pursuing a number of high priority exploration targets within the tenement holding surrounding the Merlin Diamond Project.
In addition to the Merlin Diamond Project, North Australian Diamonds has an extensive 20,804 km2 tenement holding in Arnhem Land. These tenements are considered to have potential for diamonds and other minerals.
The Company continues to hold a 32.3% interest in Top End Minerals Limited, which it successfully spun-out in late 2007.
Corporate Overview
Merlin Diamonds Limited ("MED" or "Company") is the owner of the Merlin diamond mine, in the Northern Territory, Australia.
Merlin, the Company’s flagship project, undertook pilot production in 2013. The Merlin diamond mine is famous for producing large, high clarity, super white, and high value diamonds. Australia’s largest diamond, a 104.73 carat stone, was discovered at Merlin.
Merlin Diamonds also hold extensive exploration ground in and around the Merlin diamond mine, and actively exploring for additional sources of diamonds.
