The rate of progress made on the major underground development programme at the Mine
has been "excellent". As a result, the hoisting and processing of kimberlite ore is expected to recommence 3 months ahead of schedule in late April. Ore to be hoisted will initially come from the mining of remnant pillars situated between the 145 level and surface. An estimated 120,000 tonnes of ore from these levels is expected to
return an average recoverable grade of between 16 and 18cpht. The balance of the mine’s 1.09 million tonne resource is budgeted to return an average recoverable grade of 30cpht. Mining below the 145 Level is scheduled to commence during the third quarter and is expected to result in the mining rate rising to between 11,000tpm and 14,000tpm. The board has approved the capital budget for the reconstruction and expansion of the existing Blaauwbosch processing plant to treat the anticipated increase in the mining rate. This new plant will also have the capacity to process the estimated 900,000 tonnes of tailings located at within the mine boundary. On Apr22/08, hoisting of kimberlite ore has recommenced at Blaauwbosch mine 3 months ahead of schedule.