Not only has it recently found gemstone-quality diamonds, it has also opened up on-shore mining opportunities.

The concessions explored by Kings Minerals, located 600km north of Cape Town at Port Nolloth, recently produced 22 diamonds for 13.61 carats. Stones of 2.13, 2.17, 1,68, 1.57 and 1.29 carats were found in this package.

“Everything has been precious stones so far,” Kings Minerals geologist Michael Seed said.

“By the time these stones have traveled from inner South Africa to shore, all you have left is gems. Nature has already done the sorting out for you.”

The company has an uptake arrangement with South African diamond miner Transhex. Transhex sell the diamonds Kings Minerals finds on its concessions, and profits are split.

Kings Minerals diamonds are fetching prices of up to US$400 a carat.

It has been a steep learning curve for the Queensland company, which had no previous experience in offshore mining.

“Hector Bergstrom, our site-operator, has worked this coast line successfully for years,” Seed said.

“It was a matter of setting him up with a boat and crew and then establishing good mining areas.”

After 12 months, Kings Minerals has finally established good diamondiferous gravel zones and expects the only thing to constrain production will be weather conditions.

“The boys work about 12m out in the wave break zone, so the weather is a major issue to production,” Seed said.

All things going well, Seed said Kings Minerals could be the next diamond explorer lured to Western Australia’s Kimberley kimberlite province.

He was unable to give MiningNew.net details of future on-shore diamond prospects in South Africa.

However, finances could be an issue. With only $200,000 left in the bank, Seed is hoping Kings Minerals’ last package of diamonds fetches a good price.