Key points
- April 2007 production of 8,185 diamonds for 3,189 carats was the best month since mining began Jan. 27, 2007.
- Total production from Jan. 27 to May 19, 2007 reached 21,942 diamonds for 9,485 carats at an average of 0.43 carat per stone.
- The third diamond sale totaled 3,344 carats sold for $661,615 US at an average of $198 US per carat, including a 6.16-carat gem valued at $2,219 US per carat.
- Bonaparte Diamond Mines NL has the right to 30 per cent of diamond sale proceeds and pays 30 per cent of operating and sales costs under the joint operations agreement.
Diamond Fields International Ltd.’s levels and cash flow from marine diamond mining are continuing from its joint
operations program with Bonaparte Diamond Mines NL. The company is also releasing the results of its third diamond sale.
Mining operations in the Diaz prospect 1 joint operations mining area in
ML111, offshore Namibia, using the company’s vessel MV DF Discoverer, have
been running efficiently since the end of March, 2007. The recovery for April,
2007, of 8,185 diamonds for 3,189 carats (ct) is the best monthly production
since commencement of mining operations in late January, 2007.
The strong results have continued into May, 2007, with total production for
the period May 1 to May 19 of 5,549 diamonds weighing 2,257 carats at an average size of
0.41 carat per stone. May has also produced the highest single day’s recovery so far
of 346 carats.
Total production from the joint operations mining since commencement on
Jan. 27, 2007, to May 19, 2007, now stands at 21,942 diamonds for 9,485 carats at
an average size of 0.43 carat per stone.
The third and largest sale of joint operations diamond production so far
has also been completed and 3,344 carats was sold for total sales revenue of
$661,615 (U.S.) at an average value of $198 (U.S.) per carat. The sale included a 6.16-carat gem
valued at $2,219 (U.S.) per carat, a 5.38-carat gem valued at $2,427 (U.S.) per carat and 21 carats of fancy
colour gems valued at $456 (U.S.) per carat. To date a total of 6,766 carats has been sold at
an average price of $222 (U.S.) per carat generating total sales revenue of $1,492,649 (U.S.).
All diamond sales were executed via DFI’s existing sales agreement with
Diamond Tenders (Belgium) NV in Antwerp, Belgium.
In terms of the joint operations mining agreement, Bonaparte has the right
to 30 per cent of the proceeds from the sale of diamonds recovered during the mining
operations and is obligated to pay 30 per cent of both the operating and sales costs.
Roger Daniel, DFI’s president and chief executive officer, commented, “We are delighted with
the ongoing success of the joint operations with Bonaparte which are
generating solid cash flows at these production levels.”
Roger J. Daniel, BSc, geology, London, Pr.Sci.Nat., the company’s
president and chief executive officer, is a fellow of the South African Institute of Mining and
Metallurgy (SAIMM) and is also a registered geological scientist with the
South African Council for Natural Scientific Professions (SACNASP) and is thus
a qualified person in terms of National Instrument 43-101, has compiled and
reviewed the scientific and technical information contained in this news
release.
