SYMBOL: DFI
CAPE TOWN, South Africa, March 14 /CNW/ - Diamond Fields International Ltd. (DFI:TSX) ("DFI" or the "Company") is pleased to announce that a Company record average sales price of US$258 per carat has been realized for diamonds produced from joint operations mining with Bonaparte Diamond Mines NL ("Bonaparte").
The first parcel of 1,343 carats of marine diamonds produced from Namibian offshore mining in the Diaz Prospect 1 (DP1) joint operations area with Bonaparte, has been sold in Belgium at an average value of US$258 per carat, for total sales revenue of US$346,342. This is the highest average per carat price received for diamonds recovered in the Company's ML111 license area and reflects the high quality and larger average stone size in the DP1 area. The parcel included a 1.78ct fancy pink diamond that realized a price of US$25,888 and at US$14,544 per carat this is also the highest per carat price received for an individual rough stone.
The initial 1,343 carats was produced in the first 17.5 days from commencement of mining in DP1 on January 27, 2007. Since then, continued mining on the first anchor spread location up to March 12, 2007, has produced an additional 2,725 diamonds weighing 1,393 carats at an average size of 0.51 carats/stone. Total production from commencement of mining to date is currently an estimated 2,736 carats.
During February, availability of the dual airlift mining system was below optimal capacity due to problems with certain mechanical components requiring repair or replacement. These engineering works have now largely been completed and improvement in mining system availability and production is therefore now anticipated.
Bonaparte has the right to 30% of the proceeds from the sale of diamonds recovered during the mining operations and is obligated to pay 30% of the operating and sales costs. The diamond sale was executed via DFI's existing sales agreement with Diamond Tenders (Belgium) NV in Antwerp, Belgium.
Since mining operations recommenced in late November 2006 and prior to the commencement of joint operations mining with Bonaparte, an additional 3,385 carats of diamonds have been recovered and sold for total revenues of US$630,440 at an average price of US$186 per carat with such revenues being entirely attributable to DFI.
DFI's President and CEO, Roger Daniel commented, "We are very pleased with the sales results of the first parcel mined in terms of the mining agreement with Bonaparte. The significant increase in value per carat for diamonds recovered from the DP1 area strongly reflects the larger average stone size and high quality of these goods."
Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the Company's President and CEO, is a Qualified Person in terms of National Instrument NI43-101 and has compiled and reviewed the scientific and technical information contained in this News Release.
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.