Diamond Fields International Ltd. has released a summary of exploration and development activities in Namibia, Greenland, Norway, West Africa and Madagascar.
Namibia
Diamond Fields resumed production on its marine diamond concessions offshore Luderitz, Namibia, for four months in 2004 under a jointly controlled operation during which a total of 52,826 carats was recovered. Diamond Fields’ 50-per-cent share of diamonds was sold at an average price of $210 (U.S.) per carat for total proceeds of over $5.4-million (U.S.). The joint operation used the marine crawler equipped vessel mv Kovambo to mine portions of DFI’s Marshall Fork feature on a shared-cost and shared-production basis. The initial anticipated six-month mine plan was completed in four months due to unprecedented availability of the mining and processing equipment. Diamond Fields and its partner did not renew the agreement and Diamond Fields is now planning to recommence mining activities in March, 2005, with its recently acquired dual airlift vessel, mv DF Discoverer, retaining 100 per cent of the diamonds produced (before a 10-per-cent royalty to the Namibian government). The DF Discoverer arrived in Cape Town, South Africa, on Dec. 3 to commence a refurbishment and maintenance program to both the vessel and its associated mining plant. Repairs and upgrades include, but are not limited to, replacement of all airlift riser hoses as well as air supply and water jetting hoses. This is an area that accounted for 60 per cent of all previous breakdown time under previous ownership. All pumps and screens in the diamond recovery plant will be inspected and replaced where necessary. A review of the plant flow characteristics may indicate modifications are required, and these would be completed at this time. The program is scheduled to continue through to March, 2005, when the vessel will commence mining operations in Diamond Fields’ Namibian concessions.
Diamond Fields has also acquired a new mining technology, a sea diamond miner, which will undergo sea trials in the second quarter of 2005. The miner is a self-contained suction dredge that has been shown in trials to be an effective and cost-efficient method for lifting diamondiferous seabed gravels. Modelled excavation rates rival the production of larger and more expensive drilling- and crawler-based excavation methods. Modelling of existing test data on this new technology suggests it may be capable of mining lower-grade areas and remining areas already passed over by more costly and less efficient tools.
Diamond Fields plans to conduct sea trials on the miner to perfect deployment and recovery and to improve its operating efficiency. Plans also include using it in sampling programs on its EPL1607 and ML32 concessions. Further development may include scaling the tool up for deployment in sampling and mining mode from Diamond Fields’ ship, the DF Discoverer, as well as contracting the technology out to other marine diamond miners.
Greenland
On Diamond Fields’ Ammassalik Island project on the east coast of Greenland, the company’s geologists were able to identify a trail of ultramafic pods as minor fluctuations on magnetic profiles derived from the recently completed helicopter-borne magnetics and electromagnetic survey over a distance of over 2,500 metres between two mineralized outcrops. In addition, 2,000 metres further west of the main mineralization, the trail aligns with a 1,300-metre-long (apparently continuous) ultramafic pod that makes out a local topographical ridge. The magnetic signal of the ultramafic rock is strongest on topographical highs, but can also be recognized in talus-filled valleys. Geologists have also identified a second thin layer of ultramafic pods discovered on field observations, in-layered at a higher stratigraphical level.
The sulphide content of the ultramafic-hosted mineralization varies from massive to less than 20 per cent, which indicates a significant upgrade in nickel content may be possible during processing.
The company has received interest in a potential joint venture for further development of the Ammassalik property, which is currently being considered by Diamond Fields.
On the west coast of Greenland, extensive areas of alteration hosting minor lenses of massive sulphide have returned anomalous nickel values. The company is seeking a joint venture partner for further exploration and development of these properties on the suspected extension of the Trans Hudson orogenic belt, host to the Thompson nickel deposits.
Norway
A drilling program on two polymetallic nickel targets in southeast Norway was completed in June, 2004. The Bjorndalsnipa program intersected stringer nickel mineralization containing from 0.42 per cent Ni to 1.2 per cent Ni over two-metre core intercepts. On the Gulldragsvatn program, showing surface samples had indicated the potential for titanium, nickel and copper mineralization, but drilling returned only titanium hosted in magmatic ilmenite.
On Bjorndalsnipa, the company contracted the Finnish Geological Survey to conduct a Sampo electromagnetic geophysical survey to search for a deep orebody that could explain the stringer nickel mineralization found during the drilling program. The Sampo survey defined chargeability anomalies over a one-kilometre strike length extending from the showings drilled by Diamond Fields to the Homse deposit, a massive sulphide raft that appears to have been torn off a larger body at depth. The company plans a review of all geophysics (HEM, magnetic and Sampo) to look for coincident anomalies. Based on the results of that review, further geophysical work would be undertaken to better define the structure and the anomaly, followed up with confirmation drilling.
West Africa
In 2004, Diamond Fields expanded its exploration portfolio to include greenstone- and shear-hosted gold as well as kimberlite-hosted diamonds in Liberia. The company holds exploration licences for the River Cess gold property and the Grand Gedeh gold property (option agreement with Ducor Minerals) located on the Cestos shear zone, a feature that runs north through the Ivory Coast and Mali and is host to numerous hard rock gold deposits. First-pass reconnaissance sampling has been completed on both properties. Initial reconnaissance suggests that the Grand Gedeh property has the greatest potential to host the targeted shear-hosted gold mineralization due to the presence of local artisanal miners extracting coarse-grained gold in alluvial mining operations for more than 50 years. Second-pass sampling and geological mapping will be undertaken early this year to improve the knowledge of the extent and tenor of mineralization.
Diamond Fields acquired the exploration licences for the Grand Cape property (option agreement with Ducor Minerals) and the Nimba county property in 2004. The Grand Cape property is, in part, immediately adjacent to the Kpo kimberlites of Mano River Resources and has mapped kimberlite dikes on the western side. Diamond Fields is of the opinion that this property is prospective for primary kimberlite. Reconnaissance work started in early January, 2005, and the first heavy mineral samples have been submitted for processing. First-pass reconnaissance in Nimba county indicated a low potential for the presence of kimberlite pipes and the original exploration licences were allowed to expire.
Madagascar
In Madagascar, the company has completed first-pass sampling of the recently acquired Jango nickel/platinum group elements property northwest of Antananarivo and is awaiting results of geochemical analysis. Diamond Fields has reduced its land position on the Horombe plateau diamond search to the area where kimberlitic ilmenites were found.
In summary, Diamond Fields has an aggressive plan in place to resume diamond production as soon as possible and is on schedule to be mining by the end of the first quarter of this year. The company’s geology teams are performing detailed analysis on data from all of the exploration projects and executing programs for 2005. Diamond Fields is also evaluating other possible acquisitions in order to add additional value to its exploration portfolio.
