Cape Town, October 9, 2007: Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) announces improved diamond production after seasonal downturn from marine diamond mining joint operations (“JO”) with Bonaparte Diamond Mines NL (“Bonaparte”), latest sales result and the start of resource development sampling this month.
Production and sales
As anticipated, marine diamond production from the JO mining area in DFI’s ML111 licence off Luderitz, Namibia, has improved. This follows the recoveries of the previous two months which were seasonally affected by winter conditions. Production for the month of September was 1,618 carats from 4,060 diamonds with an average size of 0.40 carats/stone.
As a result of the impact of poor weather on the equipment in the preceding month, mining in September was largely confined to a single airlift operation. Though production capability is reduced with only one airlift operating, working costs are reduced as a result of lower fuel consumption. However, good progress has been made to return both mining systems to full availability for ongoing operations. Better recoveries are expected to continue in October as a result of improvements in both weather and mining capacity. To 30 September 2007 total production from the JO area now stands at 16,245 carats from 37,963 diamonds at an average size of 0.43 carats/stone.
The latest parcel of 1,271.27 carats was sold last week and realized US$272,637 at an average price of US$214.46 per carat. Sales of production under the JO up to September 18, 2007 comprise a total of 15,566 carats realizing US$3,411,469 at an average price of US$219.16 per carat.
2007 Marine Sampling Programme
Commencement of the resource development sampling programme announced in a news release dated September 6, 2007 is scheduled for late October. The sampling vessel MV Douglas Bay, chartered by Bonaparte from De Beers Marine (Pty) Ltd, is being mobilised in Cape Town. This vessel was used successfully in 2006 to define the initial JO mining resource of 63,000 carats. The sampling programme will run for a period of 35-50 days depending on results. This will again incorporate an intensive programme of grid-based sampling which will be focused on substantially increasing the mining resource adjacent to current mining areas in ML111.
Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the Company’s President and CEO, who is a Fellow of the South African Institute of Mining and Metallurgy (SAIMM), is also a registered geological scientist with the South African Council for Natural Scientific Professions (SACNASP), and is thus a Qualified Person in terms of National Instrument 43-101, 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
For further information, contact Roger Daniel 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.