Vancouver, November 10, 2003—Diamond Fields International Ltd. (TSX: DFI) has negotiated the exclusive right to acquire a 100% interest in the Valozoro nickel deposit located in Madagascar, a deposit with a historically calculated resource of 3.7 million tonnes grading 1.75% nickel for 65,000 tonnes contained nickel.
The agreement provides Diamond Fields International with a three-month evaluation period with an option for a five-month extension before committing to acquire the property. A due diligence study on the property to assess the nature and extent of the deposit will include geological, legal, development and marketing research review. The Company intends to carry out further exploration in and around the area of the deposit. The initial stages of the due diligence will begin immediately, with analytical results of the mineral samples expected by the end of November 2003. Upon exercise of the option, fieldwork will recommence following the rainy season in March 2004. Should Diamond Fields International put the project into production, a 5% gross royalty on metal sold will be due to Mr. Jean-Raymond Boulle.
“We believe this is an exciting opportunity for Diamond Fields International and are pleased to have reached an agreement giving the Company an option to acquire 100% interest in a defined nickel deposit. This further investment confirms our belief that Madagascar offers a favorable geological and political environment for mineral exploration and mine development as well as confirming our optimism in the future of nickel itself,” stated Gregg Sedun, President and CEO of Diamond Fields International.
The Valozoro nickel deposit is located 60 kilometres north of the town of Fianarantsoa in southcentral Madagascar and is reported in the Catalogue des Principaux Gites Mineraux de Madagascar (Catalogue of Principal Mineral Deposits of Madagascar). During 1956 and 1957, UGINE completed an extensive prospecting program and reported an estimated resource at 65,000 tonnes of a lateritic nickel metal deposit from an altered peridotite host grading 1.75% nickel. These are historical resource estimates and future work is required to upgrade the estimates to comply with National Instrument 43-101 standards of disclosure.
Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing diamond and nickel opportunities worldwide. The Company’s corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international diamond and nickel projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide.
Diamond Fields International Ltd.
“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Investor Relations (1-604-682-2113)
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 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. Resource estimates are historical and not compliant with National Instrument 43-101 standards of disclosure.