Key points
- Underwater Surveys Ltd. completed a 555-line-kilometre geophysical survey over the Marshall Forks region of ML111 and the shallow-water concession ML32.
- The MV DF Discoverer completed its five-year dry dock survey in a record 13 days and under budget.
- June, 2008 diamond recovery totalled 7,792 stones for 2,402.29 carats, the company’s fourth-highest monthly production since January, 2007.
- ALS Chemex analysis of 5,144 channel samples at the Valozoro nickel deposit in Madagascar recovered values of up to 7.94 per cent nickel.
Diamond Fields International Ltd. has released an update on its operations, exploration activities and share capital consolidation.
Namibia marine operations
Diamond Fields has successfully completed a new geophysical survey undertaken by Underwater Surveys Ltd., an NI 43-101-compliant company over its Namibian marine concessions. The survey, comprising 555 line kilometres of multibeam, high resolution seismic and bathymetry data, was commissioned over the Marshall Forks region of the ML111, and the company’s shallow water concession, ML32. Northwest of the Marshall Forks region, the survey confirmed the presence of a defined channel structure approximately 30 metres in width, striking southward over a traceable length in excess of 1,200 metres. The structure lies within the Marshall Forks resource domain, which has historically yielded elevated diamond recoveries, and to which the structure may be related. The survey also covered Conical Bay, located approximately 500 metres to the east of Marshall Forks, and which the company regards as having good potential for developing high-grade lunate strand deposits. Audit surveys of Marshall Forks were also completed to accurately define remaining resources. Survey data from Boat Bay Rocks and Boat Bay North in ML32 were also collated to develop the company’s mid- to shallow-water assets. The company intends to pursue these new targets and is implementing a trenching program and taking other steps to define and develop the new economic resources. The company’s renewal application for its ML32 licence has been filed and is pending.
The company’s ship, the MV DF Discoverer, completes its five-year dry dock survey this week under budget and in a record time of 13 days. The refurbished MV DF Discoverer will undergo a short shakedown, after which it immediately begins targeted cross-trench sampling of new areas highlighted by the recent survey.
Diamond recovery in June, 2008, was 7,792 stones totalling 2,402.29 carats, the company’s fourth highest monthly production since January, 2007. Once again, the ship’s availability in June was high, exceeding 80 per cent. However, recoveries in July and August were low due to mechanical problems, the failure of a vendor to timely deliver fuel and a short August in order to prepare the vessel for its five-year dry dock survey. Production in July and August, 2008, totalled 341.15 carats and 535 carats, respectively. The marine managers used the downtime to conduct additional maintenance and repairs, which resulted in reduced time and costs in dry dock.
The most recent diamond sale resulted in another all-time high sale price. The company sold 2,541.20 carats at an average per-carat price of $263.44 (U.S.).
The company continues to develop its marine concessions through surveying and sampling, mining shallow water areas through arrangements with local miners, and negotiating with third parties for joint venture development of areas within the company’s licences.
Madagascar nickel project
ALS Chemex, an NI 43-101-compliant laboratory, has completed analysis of 5,144 channel samples collated from a 30-metre pitting grid over the company’s 100-per-cent-owned Ni-laterite deposit Valozoro in Madagascar. Values of up to 7.94 per cent nickel have been recovered from the sampling program executed by Rawtech, an NI 43-101-compliant geological consulting firm. Preliminary data suggest that the historical resource estimate of 65,000 tonnes of in situ nickel may have been conservative. An independent resource estimation is currently being undertaken by Rawtech on behalf of the company. The results of data analysis will be completed and released shortly. Based on a preliminary analysis, the board has approved management’s recommendation to proceed to the next step in developing the property.
Zambia zinc and copper
Regional exploration of the company’s joint venture with Lion Fields (Zambia) Ltd. on the PLLS 311 exploration licence in northern Zambia adjacent to the Kipushi copper zinc mine has been completed. From a review of published core drilling data undertaken by Gecamines, the company has been able to establish the continuation of the Kipushi orebody into the republic of Zambia over a minimum strike distance of 180 metres traversing the international border at a depth of approximately 1,000 metres below ground level. Two other areas, including the Katwishi anomaly, a defined Cu-Zn target approximately 1,200 metres to the northwest of Kipushi, and a zone of cupriferous gossans developed near the village of Yowela in the centre of the licence, are currently being further evaluated by the company. The company’s renewal application for PLLS 311 has been filed and is pending.
Liberia gold project
The company has fulfilled its obligations under the terms of a joint venture agreement with Ducor Inc., a Liberian registered company, whereby Diamond Fields has now earned a 70-per-cent stake in three exploration leases in the Grand Cape and Grand Geddah counties in the north of Liberia. The company undertook an exploration program for gold in the 2008 dry season within these permits. A group of 1,500 soil samples is currently being analyzed by Alex Stewart Assayers, an NI 43-101-compliant laboratory in the United Kingdom. Results are expected shortly. The company is preparing an aggressive reverse circulation drilling program to drill its Bartejaam and Henry Town anomalies within the Grand Geddah and Henry Town licence, respectively, which is expected to commence in late October, 2008. The results of data analysis will be completed and released shortly. Based on a preliminary analysis, the board has approved management’s recommendation to proceed to the next step in developing the property.
N. Kruger, BSc (honours) geology, UOFS, PriSciNat, a consultant to the company, is a registered geological scientist with the South African Council for Natural Scientific Professions (SACNASP) and is thus a qualified person under NI 43-101. Mr. Kruger has compiled and reviewed the scientific and technical information contained in this news release.
Additional opportunities and projects
The company is in discussions with third parties to develop certain of its existing properties as well as the acquisition and development of new properties. Those discussions are at various stages, and updates shall be announced as developments warrant.
Consolidation of share capital
At the annual and special meeting of Diamond Fields held on Dec. 3, 2007, shareholders of DFI voted in favour of a resolution authorizing the board of directors of the company to implement, by Sept. 30, 2008, a consolidation of DFI’s share capital at an exchange ratio of one new DFI share for each five old DFI shares. The Toronto Stock Exchange has confirmed that the common shares of DFI will commence trading on a consolidated basis at the opening on Sept. 25, 2008. A letter of transmittal will be sent to shareholders with instructions on how to exchange old share certificate(s) for new share certificate(s) of DFI. There will be no change of name with this consolidation.
The board of directors believes that this consolidation is in the best interest of shareholders, and refers to the 2007 information circular that was filed on SEDAR on Oct. 29, 2007, which sets out particular reasons.
