| ||Wed Nov 14, 2001|
Diamond Fields Achieves Positive Operating Margin in First Quarter
| ||Mr. H. D. Lee, Chief Financial Officer of Diamond Fields International Ltd. (DFI-TSE), is pleased to announce that for the first quarter ended September 30, 2001, the Company recorded a positive operating margin from the Diamond Fields-Trans Hex Group joint venture's trenching and block mining operations utilizing the mv Ivan Prinsep mining vessel. Positive operating margin resulted from the sale by the joint venture of 5,258 carats during the quarter at an average price of US$128.88 per carat for gross proceeds of US$677,596.00. These proceeds are from diamonds recovered prior to August 9, 2001 and sold before the end of the quarter. |
The mv Namakwa replaced the mv Ivan Prinsep on November 6, 2001 as the first vessel fully dedicated to the joint venture. The entire crew of the Ivan Prinsep was transferred to the Namakwa resulting in a smooth and cost efficient transition. The Namakwa utilizes proven airlift technology with a more powerful 20-inch airlift system and an aggressive high-pressure water jetting system, both of which will enable greater throughput and should result in increased diamond recovery.
Mr. Lee stated: "We are now making money from our joint venture operations, and with the Namakwa having commenced full-scale mining on November 6, 2001, we look forward to a significant increase in diamond recoveries and cash flow."
During the quarter, the Company also purchased 112,400 of its common shares from the open market at prices ranging from Cdn.$1.50 to Cdn.$0.65 per share, bringing the total number of shares purchased and cancelled under its normal course issuer bid to 117,500 common shares since the inception of the bid on June 1, 2001. Frank Waldron, CEO and Chairman of Diamond Fields, stated: "The Company's purchases under the bid are part of management's strategy to maximize shareholder value and support our belief that there is a discrepancy between the current market price of DFI's common shares and what we consider is a significantly higher inherent value in DFI and its assets."
ON BEHALF OF THE BOARD OF DIRECTORS OF
DIAMOND FIELDS INTERNATIONAL LTD.
Horng Dih Lee
Chief Financial Officer and Corporate Secretary
For further information contact: (604) 682-2113
Investor Relations: Don Halliday (604) 623-4708
Website - www.diamondfields.com
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the 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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