| ||Mon Sep 8, 2003|
Diamond Fields - Confirms 23 & 8 Carat Diamonds From Madagascar
| ||Diamond Fields International Ltd. (TSX:DFI) is very pleased to announce results of the analysis of two significant sized diamonds found in Madagascar and recently acquired by DFI, as well as details of its land concessions and recent exploration activities. Madagascar, the fourth largest island in the world, is a vast and under-explored region situated off the coast of southern-Africa. |
Fieldwork has focused on defining the potential of two extensive concession areas to host diamondiferous kimberlite, following the discovery of two large diamonds by alluvial sapphire miners in areas near DFI's concessions. Two gem quality diamonds weighing 23.82cts and 8.39cts were recovered. Both stones are of high quality and purity. The larger stone is frosted on the exterior while the smaller one is a clear octahedral crystal. Both stones have been acquired by International Gemstones Company Ltd. ("IG"), which will become DFI's 70% held subsidiary on closing of the transaction as disclosed in DFI's news release of July 31, 2003. Following this discovery, IG staked approximately 45,000 sq. km. of land near the area where the diamonds were believed to have been found as well as in other promising areas. After further analysis, certain areas have since been released from the concessions as it was determined they were not as prospective.
Land staked consists of diamond concessions located on the south eastern shore of the country (Midonge) and the central highlands (Horombe). The Midonge concessions cover reported indicator mineral finds by BRGM, a French Governmental research body. The Horombe Plateau blocks are centered on a prospective Archean aged basement. A kimberlitic ilmenite found in one of the initial orientation samples and the two diamonds referred to above were recovered from river terraces in younger sediments.
The concessions give IG the largest land position in Madagascar.
To date field crews have collected 24 stream sediment samples on the eastern block and are currently engaged in sampling concession areas on the Horombe plateau. All samples will be processed at the in-country heavy minerals laboratory owned by IG, and possible kimberlitic mineral grains will be sent for probe work to Mineral Services Laboratory in Cape Town. DFI's Chief Geologist and qualified person, Randal Cullen, is pleased to announce that highly respected diamond exploration geologist Karl Smithson, who has 10 years experience with De Beers, has been retained by IG to assist in the exploration program. Also monitoring the program is DFI director Rod Baker, a diamond exploration geologist, with 30 years experience.
IG has more recently been awarded concession areas in the north and central southern parts of Madagascar to cover reported occurrences of magmatic and lateritic-hosted nickel deposits, respectively. An exploration program for these concessions is in the planning stages.
"The Government of Madagascar is working hard to develop its mining industry. The World Bank has recently granted significant funding to help Madagascar manage its mineral resources more effectively", stated DFI director Earl Young, President of the US/Madagascar Business Council, who recently met with that country's President, Marc Ravalomanana and Mines Minister, Jacquis Rabarison.
As announced in the Company's news release of July 31, 2003 and as noted above, subject to regulatory acceptance DFI will acquire a 70% interest in IG, which holds the land concessions in Madagascar. DFI is further negotiating to acquire approximately an additional 13% of the issued shares of IG in consideration for the issuance to IG of approximately 400,000 common shares of DFI. Subject to regulatory acceptance this acquisition would increase DFI's interest in IG to 83%. All of the vendors of the additional shares to be acquired are at arm's-length to DFI except one vendor holding approximately 1% of the shares of IG, who is a director of DFI. In closing, the laboratory mentioned in the Company's September 4th, 2003 news release should have read "XRAL Laboratories, Canada", not "Activation Laboratories, Canada".
DIAMOND FIELDS INTERNATIONAL LTD.
"Gregg J. Sedun"
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Earl Young (1-214-219-1439)
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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