CAPE TOWN, SOUTH AFRICA, Aug. 18 /CNW/ - Diamond Fields International
Ltd. (DFI:TSX) ("DFI" or the "Company") is pleased to announce an expansion of
its Joint Operations with Bonaparte Diamond Mines NL (ASX:BON) ("BDM"), an
Australian listed marine diamond company, to include an agreement for
development of marine diamond resources within DFI's ML111 in Luderitz Bay,
Namibia.
By issuing 1.5M BDM shares to DFI (with an additional 0.5M shares to be
issued at BDM's option) and completing a NAM$3.0M (US$0.45M) sampling program
within six months in the 1,600,000 m(2) seabed area designated under this
agreement, BDM can earn a 30% interest in any indicated category marine
diamond resources (JORC and NI 43-101 code compliant) defined by their
programme. All shares issued under this agreement are subject to a 6 (six)
month hold period. The at-sea work is anticipated to occur over a one month
period beginning in early September, utilizing a combination of Bonaparte's
patented BoSS seabed sampling tool and DeBeers patented mega drill technology
deployed from the chartered DeBeers vessel MV Douglas Bay. This at-sea
programme replaces a previously announced Joint Operation planned for EPL1607B
which has been placed on hold pending renewal of that license by Namibian
authorities.
The agreement between the respective companies' wholly owned Namibian
operating subsidiaries allows BDM's subsidiary access to Diaz Prospect 1
(DP1), and at BDM's option Diaz Prospect 2 (DP2) within the Reef Edge marine
diamond deposit for the purposes of sampling to define indicated category
marine diamond resources. DFI's reconnaissance work has identified diamonds in
the 1,600,000m(2) area, but sampling density is not sufficient to complete a
resource calculation to the indicated category. DFI will retain a portion of
the diamonds recovered by the BoSS sampling programme in DP1 and 2 based on
total stones recovered and stone size. Indicated resources defined under this
agreement that are of sufficient grade will be included in DFI's mine plans
for the mv DF Discoverer with agreed mining expenses and diamonds recovered to
be shared on the basis of 70% DFI; 30% BDM. Should DFI opt not to mine any
indicated resource identified under this agreement BDM will have the option to
mine for its own account and pay DFI a 14% royalty on gross recoveries. All
diamonds recovered will be subject to DFI's marketing agreement with Diamond
Tenders of Belgium.
DIAMOND FIELDS INTERNATIONAL LTD.
"Roger J. Daniel"
Roger J. Daniel, President and CEO
Forward-Looking Statements:
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in Diamond Fields' periodic filings with Canadian Securities
Regulators. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking
statement can be guaranteed and actual future results may vary materially.
Diamond Fields does not assume the obligation to update any forward-looking
statement.
