The board of directors has formalized the decision to proceed, subject to financing, with the development of the company’s Sea Diamonds project offshore Luderitz, Namibia. Diamond Fields received the positive
feasibility study earlier this month. Highlights of the study, as previously reported, on Sept. 12, 2000, include a base case internal rate of return (IRR) of 54 per cent with a low capital costs of $28.1-million (U.S.) and low annual operating costs of $13.5-million (U.S.), before royalties, marketing and taxes. If carats from a suspected sampling bias are included in the mine plan, then the IRR increases to 133 per cent with no change in the capital and operating costs.
Management of Diamond Fields has been in discussions with several
international financial institutions regarding financing for the Sea Diamonds project. The company believes that, based on the high profit potential of the project combined with low initial capital costs, financing of the project could be completed later this year.
WARNING: The company relies on litigation protection for “forward-looking” statements.
