No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Kazera Global said on Wednesday that it was expanding production at its Whale Head Minerals heavy mineral sands project and progressing development at its Deep Blue Minerals diamond operation in South Africa, as it deployed funds raised late last year to support growth.
At Whale Head Minerals, the AIM-traded company said it had implemented a 1.5-shift working programme from 9 February, enabling mining and processing across all daylight hours.
Heavy mineral sands production was expected to increase to more than 4,000 tonnes per month.
Kazera said it was also working with Alexkor RMC JV, the South African state-owned entity holding diamond rights in the area, to finalise lighting and safety measures required for a transition to a full double-shift operation, which would further enhance capacity.
An upgrade of the trommel screen was underway, with a new internal screen manufactured and delivered to site.
The improvements were expected to enhance processing efficiency and product quality, with the HMS product currently delivering titanium dioxide content of around 32%.
Kazera said the upgraded output would enable third parties to test the product and submit proposals for additional separation technologies.
At the same time, it said increased mining throughput at Whale Head was expected to generate higher volumes of diamond-bearing gravel for processing at the Deep Blue Minerals project.
At DBM, overburden removal had been completed at a recently awarded high-potential inland diamond block in the Alexander Bay area, which was locally recognised as containing some of the highest carats per 100 tonnes in the region.
Mining has reached the diamond-bearing gravel layer and processing is expected to commence shortly.
The company said it had also strengthened its South Africa-based operational team, agreeing terms with two additional specialists, including a senior technician supporting both projects, as it prepares for the anticipated granting of the 2A Mining Right.
"Following the seasonal slowdown over the South African Christmas and summer holiday period, operational activity has accelerated as expected, with increased equipment deployment, staffing and production expansion now underway," said chief executive Dennis Edmonds.
"This includes extended shift operations at WHM, alongside processing upgrades and additional equipment now on site, supporting increased throughput and improved product quality.
"In parallel, the inland diamond project is progressing well, with overburden removal completed in the initial mining areas and processing of diamond-bearing gravel expected to commence shortly.
"The company is also strengthening its South Africa-based operational team to support the next phase of growth and prepare for the anticipated 2A Mining Right.
"Together, these developments demonstrate delivery against the priorities funded through the recent fundraise and position Kazera for continued production growth."
At 1327 GMT, shares in Kazera Global were up 6.09% at 1.22p.
Reporting by Josh White for Sharecast.com.