DIAMOND FIELDS UPDATE
Diamond Fields International Ltd. is reviewing
reconnaissance and development success on its Liberian joint venture
properties and is also reviewing other operating corporate matters.
In Liberia nine kimberlite targets have been generated with 75 per cent of the
reconnaissance sampling completed. Two targets are pipe-like bodies, three are
inferred dike trends in excess of 500 metres long. Ground magnetic anomalies are
present, coincident with interpreted kimberlite pipes and dikes on the three
targets surveyed. The company is investigating the possibility of mobilizing a
diamond recovery plant to Liberia to facilitate bulk sampling of kimberlites
for grade. One-kilometre-long by 500 m wide sampling grids over high-grade gold
anomalies have been completed on both Grand Cape and Grand Gedeh properties.
Results are anticipated by the end of August. Fieldwork has been suspended
until the end of the rains in mid-September.
Liberian diamond exploration
After follow-up sampling on kimberlite targets generated by stream
sediment reconnaissance work, DFI has nine areas requiring further development
work. Of these, the company has advanced to mapping, grid sampling and
pitting on five areas, with ground geophysics completed on three. Magnetic
response indicative of kimberlite is present on all three of these, confirming
the presence of two pipe-like bodies on grid four and a dike trend in excess of
500 m long on grid three. Macro-diamonds (0.05 carat, 0.08 cts and 0.22 cts) have
been recovered during grid sampling and pitting of a fourth three km long dike
target on grid five.
Geophysical response of the pipes on grid four, sampled at 25 m intervals
along the line and 50 m between lines, indicated discreet non-linear anomalies.
The area of the pipes could not be confirmed by the magnetics, but they are
inferred from the size of the swamps within which they occur to be
approximately three hectares and one hectare respectively. The extensive (greater
than 500 m) dike trend on grid three was surveyed at 10 m intervals across strike,
with response indicating widths of the anomaly of five m or more. Alternatively,
there are a series of smaller parallel striking dikes within a five m wide or
greater zone. The dike continues off the geophysical grid in both northeast
and southwest directions. On grid five, two parallel dike trends about 150 m apart
extend up to three kilometres along strike.
These targets will require further investigation with geophysics (EM
and/or ground penetrating radar) and drilling to confirm dimensions. A
comprehensive test of grade by bulk sampling these targets is planned after
pitting on one pipe target failed to produce diamonds. The acquisition of a
small diamond recovery plant is being considered to facilitate analysis of
bulk samples of the kimberlitic material for grade under secure conditions.
Liberian gold exploration
Artisinal mining of high-grade quartz veins assaying 13 grams per tonne
gold across 1.5 m vein width on the Grand Cape property at Henry town, and
visible gold in stream-sediment samples from the Grand Gedeh property
adjacent to the Cestos Shear zone prompted the company to proceed with soil
sampling and mapping grids over these targets to explore along- and across-strike extensions of this mineralization. Soil sample grids have been
completed over these targets with the collection of over 300 samples. These
samples are being dried and screened at DFI’s heavy mineral laboratory in
Monrovia before shipment for gold analysis by Anglo American Research
Laboratories in Johannesburg. Results are expected by the end of August.
Further work on these targets will include trenching to determine widths and
drilling if warranted to explore for along strike continuity of grade and
thickness.
Kimberley process in Liberia
The Liberian Department of Minerals and Energy is making rapid progress
with development of infrastructure to support registration of diamond output
under the Kimberley process. Entrance to the group of countries certified
under the process, which already includes Liberia’s immediate neighbours Guinea
and Sierra Leone, is anticipated by the fourth quarter of 2006.
Mining vessel and corporate matters
As reported in Stockwatch May 16, the company’s vessel M.V. DF
Discoverer is in Cape Town for its scheduled dry docking, maintenance and
refit program. The statutory dry docking has been completed and other
scheduled work is in progress. The overall program has been delayed as a
result of late entry into the dry dock due to time overruns with other vessels
previously occupying the dock, poor weather with severe winter storms
affecting the region, and in finalizing arrangements for the company’s
financing. Details of the financing are nearing completion, and it is expected
that such details will be released shortly. It is now anticipated that the
vessel will resume mining in Namibia in September.
Diamond Fields and Moydow Mines International Inc., as reported in Stockwatch
March 1, 2006, reached an agreement effective Feb. 28, 2006,
pursuant to which Moydow securityholders will exchange their Moydow
securities for securities of Diamond Fields. All
the necessary stipulations required under the terms of the agreement were not
reached in a timely fashion and the agreement has terminated. The parties
remain in discussion as to how best to proceed. Moydow, like Diamond Fields,
is engaged in mineral exploration and development worldwide.
