Shear Diamonds Ltd. (TSXV:SRM) announced that weak diamond prices across the globe have caused it to suspend production of the high-grade stockpiles at its Jericho diamond mine, located in Nunavut, Canada. While it waits for prices to improve, the company plans to further investigate the resource at Jericho as well as sites in close proximity to the property.
As quoted in the press release:
World diamond market prices have dropped sharply, well below Shear’s break even prices. As previously disclosed, this drop has posed significant challenges to Shear’s finances.
“While we are gratified that we achieved our 2012 goals, we are subject to many factors that are outside our control, such as current low diamond prices. Prices have dropped significantly just as we were hitting our stride,” said President and CEO Julie Lassonde. “Shear had assembled an outstanding team that has enabled us to overcome many challenges and in achieving our goals, including recently repairing a damaged thickener core well ahead of schedule and on budget,” added Ms. Lassonde. “We will now turn to obtaining further financing for exploration.”