Diamond Fields International
Ltd. (DFI) confirms an expansion of
its joint operations with Bonaparte Diamond Mines NL (BDM), an
Australian-listed marine diamond company, to include an agreement for
development of marine diamond resources within DFI’s ML111 in Luderitz Bay,
Namibia.
By issuing 1.5 million BDM shares to DFI (with an additional 500,000 shares to be
issued at BDM’s option) and completing a $3.0-million (Namibian) ($450,000 (U.S.)) sampling program
within six months in the 1.6-million-square-kilometre seabed area designated under this
agreement, BDM can earn a 30-per-cent interest in any indicated category marine
diamond resources (JORC and NI 43-101 code compliant) defined by the
program. All shares issued under this agreement are subject to a six-month hold period. The at-sea work is anticipated to occur over a one-month
period beginning in early September, using a combination of Bonaparte’s
patented BoSS seabed sampling tool and the De Beers patented megadrill technology
deployed from the chartered De Beers vessel MV Douglas Bay. This at-sea
program replaces a previously announced joint operation planned for EPL1607B,
which has been placed on hold pending renewal of that licence by Namibian
authorities.
The agreement between the respective companies’ wholly owned Namibian
operating subsidiaries allows BDM’s subsidiary access to Diaz prospect 1
(DP1) and, at BDM’s option, Diaz prospect 2 (DP2) within the Reef Edge marine
diamond deposit for the purposes of sampling to define indicated category
marine diamond resources. DFI’s reconnaissance work has identified diamonds in
the 1.6-million-square-kilometre area but sampling density is not sufficient to complete a
resource calculation to the indicated category. DFI will retain a portion of
the diamonds recovered by the BoSS sampling program in DP1 and DP2 based on
total stones recovered and stone size. Indicated resources defined under this
agreement that are of sufficient grade will be included in DFI’s mine plans
for the MV DF discoverer, with agreed mining expenses and diamonds recovered to
be shared on the basis of 70 per cent DFI and 30 per cent BDM. Should DFI opt not to mine any
indicated resource identified under this agreement, BDM will have the option to
mine for its own account and pay DFI a 14-per-cent royalty on gross recoveries. All
diamonds recovered will be subject to DFI’s marketing agreement with Diamond
Tenders of Belgium.
