| ||Fri Aug 18, 2006|
Joint Operations Agreement for Resource Development in ML111
| ||(Cape Town, August 18th, 2006) - 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 m2 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 1,600,000m2 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
For further information, contact Roger Daniel or Randal Cullen at +27 21 425 1990
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.
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