The government of Lesotho also has signed a seven-year lease with Kao Diamond Mine Ltd. (KDM) to take over the Ha Lejone accommodation and administration camp where a renovation and refurbishment was to be completed before the end of 2007. KDM will thus save the initial capital required to house employees and contract workers at the mine. The 44 two and three-bedroom houses will be able to accommodate up to 200 workers.

Another milestone achieved this year, according to the company, is agreement on a joint-venture power plant project which now has the full support of its four JV partners. The plant is scheduled to come on line by the end of 2009 and is essential to ensure the viability of the second and third stages of the Kao project.

Commenting on the company’s assets in the Tshikapa diamond region of the DRC, Hay said the company has agreed to acquire from Greenstone Diamonds Ltd. 10 concessions comprising kimberlite prospecting and alluvial mining operations in the Tshikapa district immediately north of the Angolan border. It is envisaged that GDR will conduct selective trial mining to confirm the average grade and value of the resources in order to determine the feasibility of the project. It will then move to acquire full mining licenses, which would necessitate the transfer of 5% of the shares in the DRC subsidiary to the DRC government.