Business
Diamond Fields International Ltd. - Expansion of Namibian Joint Operations and Sales and Production Update
Diamond Fields International Ltd. - Expansion of Namibian Joint Operations and Sales and Production Update.
About this update from Dfr Gold Inc
[{"type":"text","content":"\n\n\n\nSYMBOL: DFI\n\n\nCAPE TOWN, July 16 /CNW/ - Diamond Fields International Ltd. (DFI:TSX)\n("DFI" or the "Company") is pleased to announce the successful conclusion of\ndiscussions with Joint Operations (JO) partner, Bonaparte Diamond Mines NL\n("Bonaparte") to expand the scope of the operations in DFI's ML111 mining\nlicense, offshore Namibia.\n\n\nThe Company and Bonaparte recently signed an amendment to the existing JO\nMining Agreement whereby the original 1.6km(2) JO area in the Diaz Reef\nProspect of DFI's ML111 license off Luderitz, Namibia has been expanded to a\ntotal prospective area of 10.8 km(2). The expanded JO area will be sampled by\nBonaparte at its cost with the objective of substantially expanding the mining\nresources available to the JO mining operations.\n\n\nIn terms of the amendment to the existing JO Resource Development\nAgreement and the JO Mining Agreement between Diamond Fields Namibia (Pty) Ltd\n(DFN) a wholly owned subsidiary of DFI and Bonaparte Diamond Mines (Namibia)\n(Pty) Ltd (BDN), a wholly owned subsidiary of Bonaparte, the expanded JO area\nincorporates the existing Diaz Prospect 1 (DP1) and Diaz Prospect 2 (DP2)\nareas. While DFN is the Mining Operator DFN and BDN will share the operations\ncosts, diamond marketing costs and gross sales proceeds from production in\nproportion of 65% to DFN and 35% to BDN. Bonaparte will expend an amount of\nnot less than N$5,000,000 (Five million Namibian Dollars) directly on resource\ndevelopment within the expanded JO area in ML 111 over a period of 2 years\nfrom the effective date of this agreement. For continuity of joint operations\nmining and flexibility of mine planning, exploration sampling by Bonaparte\nwill be undertaken as soon as practically possible (during calendar 2007 or as\nsoon as possible thereafter) subject only to availability of a suitable\nsampling vessel. In all other respects, DFN and BDN affirm the terms of the\nAgreement and the JO Agreement.\n\n\nIn the current DP 1 JO mining area, June 2007 production was 1,561.56\ncarats at an average size of 0.45 carats/stone. The lower monthly production\nwas due primarily to increased downtime from periods of unusually severe\nwinter weather that directly restricted operations and also caused certain\nmechanical and technical problems. Total production for...