Kazera holds a 100% direct interest in Deep Blue Minerals (“DBM”), with 74% owned directly by Kazera and 26% reserved for Black Economic Empowerment (BEE) partners, in compliance with South African law.

Location and Resource Potential

The DBM operation is situated within the historic 80km-long Alexkor diamond fields in Alexander Bay, South Africa, located between two renowned De Beers operations. Since 1928, the area has yielded over 10 million carats of gem-quality diamonds, with an estimated 2 million carats still present within the tenement.

A 2020 feasibility study on Cliffs, one of DBM’s mining blocks, confirmed an inferred resource of approximately 208,000 carats, based on a 1.6 mm bottom cut-off aperture and a grade of 6.0 carats per 100m².

Mining Operations

DBM operates under a direct mining contract with Alexkor SOC Limited, a government-owned entity holding the rights to all diamonds in the area. In 2025, DBM secured a five-year extension to this contract, covering both land-based and shoreline diamond deposits. This agreement includes a 12-month probationary period, ensuring compliance with health, safety, and production standards.

Enhanced Processing Capabilities

DBM has taken proactive steps to enhance its processing capabilities. In addition to working with Alexkor’s Muisvlak processing plant, DBM has commissioned its own processing infrastructure, including a pulsating jig and FlowSort X-ray sorter. This setup allows DBM to efficiently process high-concentration diamond gravels, complementing Alexkor’s existing processing capabilities and ensuring continuity in production. Once processed, the diamond concentrate is sent to Alexkor for final sorting before being prepared for sale.

Strategic Focus

DBM prioritises mining areas closer to the beach, where diamonds are typically of higher quality and overburden is minimal. This strategy enhances operational efficiency and supports rapid production scaling.

Forward Outlook

With its extended mining agreement, upgraded processing facilities, and focus on high-quality deposits, DBM is well-positioned for sustained production growth and positive cash flow in 2025 and beyond.