Diamond Fields has appointed Jack McOuat, PEng, to its board of directors. Mr. McOuat has had a very distinguished career in mining over the past 50 years. He is a founding partner of the world-renowned mining consulting firm of Watts, Griffis and McOuat Limited and has been involved in the discovery and development of many major mineral deposits around the globe.
Mr. McOuat has been on the board of directors of numerous distinguished mining companies including Cominco Ltd., Echo Bay Mines Ltd. and Euro-Nevada Mining Corp. In addition, he has a history with Diamond Fields having served as a director of DFI’s predecessor company Diamond Fields Resources Inc., and played a key role in the sale of that company to Inco Ltd. in 1996.
Gregg Sedun, chief executive officer of Diamond Fields, stated: “Having Jack McOuat join our board of directors will be a great addition to our company. His extensive and varied experience in the mining industry worldwide as well as the relationships he has developed over a very successful 50-year history in the mining business will be a tremendous benefit and asset to Diamond Fields. We look forward to his contributions in helping build our company.”
Third quarter results
Diamond Fields announced a net loss for the three months ended March 31, 2004, of $641,973 (U.S.) or one U.S. cent per share, compared with a net loss of $141,721 (U.S.) or nil per share for the same period in 2003. Year-to-date the net loss is $1,342,991 (U.S.) compared with a loss of $977,787 (U.S.) for the same period of 2003.
All revenue for the nine-month period ended March 31, 2004, resulted from the sale of diamonds held in inventory or recovered during operations. A total of 8,872 carats were sold at an average price of approximately $145.87 per carat generating revenue of $1,294,182, up from revenue of $1,252,932 on the sale of 8,934 carats for the same period in the 2003 fiscal period. Production, royalty and selling expenses associated with the sale of inventory totalled $881,218; whereas, these operating costs for the same period in fiscal 2003 were $966,167. The company generated an operating margin of $412,964 for the nine-month period ended March 31, 2004, compared with $286,765 for the same period in fiscal 2003.
During the nine-month period ended March 31, 2004, operations, including exploration and development, together with general and administrative costs, were financed from cash on hand at the beginning of the period, from revenue generated by the sale of diamonds during the period and from a non-brokered financing.
Diamond Fields continued to create the conditions for long-term growth. The company expanded diamond and nickel exploration activities, broadened the company’s scope to include additional mineral exploration and completed non-brokered private placements totalling $8.1-million. Proceeds from the financing and cash flow generated by operations will allow the company to expand its diamond and other mineral exploration activities.
Overview of activities
In January, 2004, Diamond Fields announced the results of the 2003 fieldwork conducted on its nickel project located on Ammassalik Island off the southeast coast of Greenland. Mapping and sampling extended the strike length of the most prospective horizon to over 40 kilometres in four structurally repeated zones. Fieldwork has recovered locally derived boulders with anomalous (0.2 per cent to 1 per cent) nickel emanating from three of the four horizons. Diamond Fields’ geologists are greatly encouraged by these results and plan to conduct an airborne Mag/EM geophysical survey as soon as weather permits.
On Feb. 24, 2004, Diamond Fields appointed Kenneth E. Hecker to the positions of chief operating officer and chief financial officer. Mr. Hecker joined Diamond Fields to guide the process of exploring and developing the company’s international diamond and nickel projects, while seeking opportunities to acquire new economic mineral projects worldwide.
On March 23, 2004, the company acquired the Ogna nickel-copper project in southwestern Norway consisting of the Bjorndalsnipa (Ni, Cu) and Gulldragsvatn (Ni, Cu, Ti) properties. The properties are subject to a 1-per-cent net smelter royalty.
Outlook
Diamond mining operations are scheduled to recommence on the Luderitz concession by early June, 2004. The term of the joint venture agreement is for an initial six-month period, with Diamond Fields having the sole option to renew the joint venture on the same terms for a further six-month period, subject to agreement on an acceptable mine plan.
With respect to the Ogna nickel-copper project in Norway, the company plans an exploration drilling program commencing in late May, 2004, on promising geophysical targets in altered and mineralized intrusive rocks of the Rogaland intrusive massifs.
On April 16, 2004, the company obtained two mineral reconnaissance licences in Liberia, one of which is a diamond prospect, the other a gold prospect. Diamond Fields is planning sampling programs to attempt to define anomalous areas on both these concessions.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
