AMN - SOUTH AFRICA: Oena diamond production improves

Tango Mining Limited has increased diamond production at its Oena project in South Africa over the past year. This is largely attributable to the improved performance of the mining contractors on site.

During the most recent production period from May 9 to July 7, 2019, a total of 531.82 carats (230 diamonds) were produced, placed on tender and sold with an average price of US$1,382 per carat.

This includes a 19.87-carat diamond which sold at US$4,358 per carat, a 49.6-carat diamond which sold at US$2,561 per carat and a 24.97-carat diamond which sold at US$1,101 per carat.

Tango is extremely pleased with the performance of the mining contractors on site who have continually increased and improved diamond production at Oena over the past year.

From mining and processing contractor Bluedust a total of 206 diamonds totalling 407.76 carats were placed on tender or sold to the State Diamond Trader from the production period May 9 to July 6.

The average price received was US$1,264 per carat. This included an 18.2-carat diamond which sold at US$2,850 per carat and a 19.87-carat stone that sold at $4,358 per carat.

The Contract Mining and Diamond Recovery Agreement with Bluedust requires Bluedust, at its own cost and expense, to provide and maintain all the plant and equipment as required.

A total of 25% of the gross income of net diamond sales from run of mine gravel and 40% of gross income of net diamond sales from pan tailings and bantam material (tailings), less commission, will be paid to Tango's subsidiary for the duration of the 60-month contract.

From mining and processing contractor Oryx Mining & Hall of Diamonds a total of 24 diamonds totalling 124.06 carats were placed on tender or sold to the State Diamond Trader from the production period June 4 to July 6. The average price received was US$1,765 per carat.

This includes a 49.6-carat diamond which sold at US$2,561 per carat, a 24.97-carat diamond which sold at US$1,101 per carat and a 16.65-carat diamond which sold at US$2,126 per carat.

Tango's subsidiary, African Star Minerals (ASM), entered into a Joint Operating Agreement with Oryx Mining (Pty) Ltd and Hall of Diamonds CC (HoD) whereby Oryx will contribute earthmoving and mining equipment to support the operation of ASM’s two pan plants. ASM shall pay a total of 55% of net proceeds of diamond sales to Oryx and HoD after deduction of operating costs.

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