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Mining Commences in Joint Operations Area
Mining Commences in Joint Operations Area.
About this update from Dfr Gold Inc
[{"type":"text","content":"\n\n\n\nSYMBOL: DFI\n\n\nCAPE TOWN, South Africa, Jan. 29 /CNW/ - Diamond Fields International\nLtd. (DFI:TSX) (\"DFI\" or the \"Company\") is pleased to announce that diamond\nproduction has commenced in the indicated resource areas defined under the\npreviously announced joint operations agreement with Bonaparte Diamond Mines\nNL (\"Bonaparte\") after signing a mining agreement with Bonaparte.\n\n\nDFI's mining vessel \"MV DF Discoverer\" commenced mining operations on\nJanuary 27, 2007 in the Joint Operations area in the Diaz Prospect 1 (DP1) in\nML111 offshore Luderitz, Namibia where independent consulting company SRK\nConsulting (\"SRK\") has estimated a NI 43-101 compliant Indicated Resource of\n63,000 carats derived from sampling conducted under the joint operations\nagreement with Bonaparte.\n\n\nAs previously announced, this indicated resource occurs within 7 discrete\nzones over a total area of 315,000m2 in DP1 at an average grade of 0.2 ct/m2\nbut 76% of the total resource (48,000 carats) occurs at an average grade of\n0.43ct/m2 in an area of 111,500m2. SRK anticipates that grades achieved during\nmining could be up to 30% higher than the estimates. The average size of the\ndiamonds in DP1 is estimated by SRK at 0.47ct/stone (arithmetic mean) which is\nsignificantly higher than displayed in most deposits delineated to date in the\nLuderitz area. The diamonds recovered in sampling were valued by the Namibian\nGovernment Diamond Valuation process at US$318/ct.\n\n\nThe diamondiferous gravels generally lie at shallow depths with average\nsediment thickness ranging from 0.5m to 2.5m and so are conducive to high\nproduction rates and lower unit costs.\n\n\nDFI and Bonaparte have concluded a short form mining agreement to enable\nboth companies to benefit from the high diamond grades identified during the\nlate 2006 joint operations sampling programme while a more comprehensive\nagreement is concluded between the parties. In summary, the mining joint\noperations will be conducted by DFI utilizing its vessel mv DF Discoverer on a\n70%(DFI) : 30% (Bonaparte) shared revenue and agreed operating cost basis. The\nmining is being undertaken under an agreed mining plan and the full agreement\nis expected to be completed within the next few weeks.\n\n\nDetails of the Indicated Resource calculation, including the key\nassumptions, p...