Diamond Fields International Ltd. has provided its latest sales results and production from
marine diamond mining joint operations (JO) with Bonaparte Diamond Mines NL, and has started a new JO resource sampling
program.
Diamond sales and production update
Diamond production from June to mid-August, 2007, totalling 3,727.86 carats
was sold in late August and realized a total of $872,813 (U.S.) at an average price
of $234.13 (U.S.) per carat. This sale included a 2.45-carat pink diamond that sold
for $41,089 (U.S.) ($16,771 (U.S.) per carat). Sales of production under the JO up to
Aug. 13, 2007, comprises a total of 14,294 carats realizing $3,138,832 (U.S.) at an
average price of $219.58 (U.S.) per carat.
In terms of the JO agreement Bonaparte has the right to 30 per cent of the
proceeds from the sale of diamonds and is obligated to pay 30 per cent of agreed
operating and sales costs.
The unusually severe winter weather conditions and resultant technical
problems that affected operations and reduced production in June continued
through July and August with production for those months being 1,434 carats and
874 carats respectively. Average stone size and diamond quality throughout
this period remained good with average size maintaining 0.43 carat per stone.
Available mining time and production was affected by a combination of
exceptional factors including direct stoppages as a result of weather
conditions, equipment damage and breakages (mainly mining hoses and mining
wires) as a secondary result of the severe weather and dragging of anchors
(again due to harsh weather) resulting in the vessel being unable to maintain
its desired position. Replacement of the damaged mining hoses was required
sooner than anticipated and time was lost while the hoses were sourced and
delivered from Ireland. The hose problem resulted in frequent stoppages to the
port airlift as available hoses were applied mainly to keeping the starboard
airlift operating.
Production is expected to again increase in the December, 2007, quarter
with improving weather conditions and return to full operational capacity as a
result of the replacement and repair of certain equipment on the mining
vessel.
Mining in the JO area has continued since late January, 2007. To the end
of August, 2007, JO mining in ML111 DP1 has produced a total of 33,903 diamonds
for 14,627 carats at an average size of 0.43 carat per stone.
Joint operations marine sampling
Bonaparte has contracted the purpose built marine diamond sampling vessel
MV Douglas Bay from DeBeers Marine (DBM) for a second sampling program in
ML111 in terms of the amended JO agreement details of which were announced in
Stockwatch on July 16, 2007. The program is planned to start in late
October, 2007, and will run for a period of 35 to 50 days depending on results.
This vessel was used successfully in 2006 to define the initial JO mining
resource of 63,000 carats.
Sampling operations will be focused on substantially increasing the
mining resource adjacent to current mining areas within selected areas of the
recently expanded ML111 JO area. Previous sampling by DFI has confirmed
several areas of diamond concentration within the expanded area. The initial
sampling will concentrate on the development of resource in these areas.
Roger Daniel, DFI’s president and chief executive officer, commented: “We are delighted that
our JO partner Bonaparte is embarking on a second round of resource
development sampling. Our expectation for the expanded JO area in ML111 is
that it will provide the platform for defining substantially larger diamond
mining resources to allow us to progressively increase diamond production from
2008 onwards. The objective is to delineate an additional resource of some
200,000 to 400,000 carats in the expanded area in 2007/2008 to support JO
mining for several years and allow serious consideration to be given for the
introduction of a second mining vessel.”
Mr. Daniel, BSc (honours) geology, London, PrSciNat, the company’s
president and CEO, who is a fellow of the South African Institute of Mining
and Metallurgy (SAIMM), 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.
