Key points
- The expanded joint operations area incorporates the existing Diaz prospect 1 and Diaz prospect 2 areas of DFI’s ML111 licence.
- Bonaparte will spend at least $5-million Namibian on resource development in the expanded area over two years.
- DFN and BDN will split operations costs, marketing costs and sales proceeds 65 per cent to DFN and 35 per cent to BDN.
- The fourth diamond sale, 3,850 carats sold in Belgium, realized $773,369 (U.S.) at an average of $201 per carat.
Diamond Fields International Ltd. has successfully concluded
discussions with joint operations (JO) partner, Bonaparte Diamond Mines NL, to expand the scope of the operations in DFI’s ML111 mining
licence, offshore Namibia.
The company and Bonaparte recently signed an amendment to the existing JO
mining agreement whereby the original 1.6-square-kilometre JO area in the Diaz Reef
prospect of DFI’s ML111 licence off Luderitz, Namibia, has been expanded to a
total prospective area of 10.8 square kilometres. The expanded JO area will be sampled by
Bonaparte at its cost with the objective of substantially expanding the mining
resources available to the JO mining operations.
In terms of the amendment to the existing JO resource development
agreement and the JO mining agreement between Diamond Fields Namibia (Pty.) Ltd.
(DFN), a wholly owned subsidiary of DFI and Bonaparte Diamond Mines (Namibia)
(Pty.) Ltd. (BDN), a wholly owned subsidiary of Bonaparte, the expanded JO area
incorporates the existing Diaz prospect 1 (DP1) and Diaz prospect 2 (DP2)
areas. While DFN is the mining operator, DFN and BDN will share the operations
costs, diamond marketing costs and gross sales proceeds from production in
proportion of 65 per cent to DFN and 35 per cent to BDN. Bonaparte will expend an amount of
not less than $5-million (Namibian) directly on resource
development within the expanded JO area in ML111 over a period of two years
from the effective date of this agreement. For continuity of joint operations
mining and flexibility of mine planning, exploration sampling by Bonaparte
will be undertaken as soon as practically possible (during calendar 2007 or as
soon as possible thereafter), subject only to availability of a suitable
sampling vessel. In all other respects, DFN and BDN affirm the terms of the
agreement and the JO agreement.
In the current DP 1 JO mining area, June, 2007, production was 1,561.56
carats at an average size of 0.45 carat per stone. The lower monthly production
was due primarily to increased downtime from periods of unusually severe
winter weather that directly restricted operations and also caused certain
mechanical and technical problems. Total production for the quarter to June,
2007, stands at 8,280 carats at an average size of 0.41 carat per stone. Total
production from commencement of mining now stands at 12,318 carats to the end
of June, 2007.
The fourth diamond sale, and largest to date from joint mining
operations, of 3,850 carats was completed in Belgium and realized a total
revenue of $773,369 (U.S.) at an average price of $201 per carat. To date, a total of
10,567 carats have been sold at an average value of $214 per carat.
Roger Daniel, DFI’s president and chief executive officer, commented: “We are pleased to be
expanding the scope of operations with our JO partners, Bonaparte, which we
anticipate will result in substantial additions to the resource base in the
short term, enabling improved mine planning options, providing a basis for
increased production levels and may allow us to consider the introduction of a
second production unit.”
Mr. Daniel, BSc (honours), geology, London, PrSciNat, 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.
