On July 8, 2004, Diamond Fields International Ltd. sold 7,126.92 carats at an average price of $239.16 (U.S.) per carat for a total sale of $1,704,449 (U.S.). The average sale price of $239.16 (U.S.) per carat is a record for sales of diamonds from DFI’s marine concessions and a substantial increase over the $143 (U.S.) per carat average in 2003. This parcel represents DFI’s 50-per-cent share of the diamonds that were mined by the MV Kovambo between June 9 to 20, 2004, and was tendered for sale in Antwerp, Belgium, through Diamond Tenders (Belgium) N.V.
The sale included a 5.26-carat diamond that sold for a DFI record of $10,457 (U.S.) per carat for a total of $55,009 (U.S.) more than doubling the company’s previous record of approximately $5,000 (U.S.) per carat. This rare diamond was described to be of excellent purity, potentially VVS in polished quality with light blue colour. However, even excluding this special stone, the average carat price of the sale parcel still exceeds $231 (U.S.) per carat.
Gregg J. Sedun, president and chief executive officer of Diamond Fields, stated: “This sale confirms the quality of DFI’s marine diamond resource. With the substantial increase in diamond production from our marine concessions achieved by the Seabed Crawler recovery system and the significant price increase achieved for our diamonds, we continue to demonstrate the profitability of our marine mining. I am extremely pleased with our results to date and eagerly await future production results.”
The company would also like to make a correction to data presented in its press release as reported in Stockwatch July 6, 2004. The total resource for ML111 in the MRDI feasibility study was 896,000 carats indicated and 209,800 carats inferred. Overall resource grade from the MRDI feasibility study is 0.30 carat per square metre and the grade for the area that is currently being mined (MF5) is 1.01 carats per square metre. The company apologizes if this created any misunderstanding or confusion. Randall Cullen is the company’s qualified person under the National Instrument 43-101.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
