Key points
- Individual 10-square-metre trenches in the Trans Hex-Diamond Fields International joint venture off the Namibian coast recovered grades exceeding five carats per square metre, more than three times the previous estimate of about 1.7 carats per square metre.
- The joint venture recovered over 6,000 carats in the past three months despite a period of limited actual mining.
- Full-scale mining is set to begin with the first joint venture vessel in early November, using airlift mining technology that has achieved about 90-per-cent uptime over the past quarter.
- A second joint venture vessel will be purchased, converted and operational before October 2002, while the vessel currently being converted in Cape Town is being fitted with a more powerful airlift system and a bigger plant.
Individual trenches showing high-grade diamond concentrations in excess of three times the grade of previous sampling results have been one of the significant benefits from the earlier-than-expected startup of the Diamond Fields International-Trans Hex (TSX- JSE/NSX) joint venture off the Namibian coast.
“The operation has recovered grades in individual 10-square-metre trenches of more than five carats per square metre where previous work had indicated the presence of grades in the order of 1.7,” said Trans Hex executive director, marine division, Andre Louw. “This confirms the presence of high-grade pockets of diamonds within a background of minable grades.”
“All the early geological work was performed by other parties,” said Mr. Louw. “I’m satisfied that our own sampling activities support these estimates and, more importantly, the proof is in the bank. We have recovered over 6,000 carats in the past three months — a period characterized by very little actual mining.”
Mr. Louw added that the windfall availability of the mv Ivan Prinsep fast-tracked the joint venture program, and allowed a sooner-than-expected mixed program of trench sampling and test mining activities. Although the rate of progress was not entirely satisfactory at times, a lot was learned about the definition of geological features and the distribution of the diamonds in these features.
“This places us in a much more favourable position when full-scale mining commences with the first joint venture vessel in early November.” Trans Hex has opted for proven and extremely cost-effective airlift mining technology, which has demonstrated satisfactory results in fairly difficult geological conditions in some of the trenches in the joint venture area. The mining head is specifically designed to operate in the smaller gully and pothole features where diamonds are trapped. Importantly, the mining vessel has experienced exceptionally high availability over the past quarter — in the order of 90-per-cent uptime.
The move to deepwater mining is an important strategic move for Trans Hex, underlined by the fact that the traditionally harsh coastal winter weather has had virtually no impact on operations, whereas Trans Hex’s shallow-water contractors have been limited in their winter diving activities, adversely affecting production.
“The vessel undergoing conversion in Cape Town, the first of two similar ships dedicated to the joint venture, has been fitted with a more powerful airlift system and a bigger plant,” explained Mr. Louw. “This will enable even greater gravel throughput and should result in more diamonds.”
Once the new vessel is on station and mining, the mv Ivan Prinsep will be reassigned to Trans Hex’s own concession areas. A second joint venture vessel will be purchased, converted and operational before October, 2002.
Diamond Fields’ chairman and chief executive officer, Frank Waldron, said: “The early startup of the joint venture has given us knowledge of the geological features of the target zone that no one had before. We are ahead of schedule, and have recovered diamonds. Furthermore, both parties are working well together and sound relationships are being developed. The joint venture is firmly on track and we intend to keep it there.”
“Diamond Fields has a great orebody in Marshall Fork and growth potential in areas outside Marshall Fork, and we want to make sure that our shareholders and the public receive complete and accurate information regarding our project. We invite everyone to contact us directly through our Web sites or through our investor relations personnel as listed below,” concludes Mr. Waldron.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
