Vancouver, Aug. 12, 2004-Diamond Fields International Ltd. (DFI: TSX) is pleased to announce that it has entered into an option agreement with Liberian-based Ducor Minerals Inc.(“Ducor”), under which it may earn an interest in Ducor’s rights under two Mineral Exploration Agreements between Ducor and the Republic of Liberia. The Gbapolu and Grand Gedeh Properties cover a total area of 1813.72 km2 and are prospective for diamonds and gold, respectively.
The Gbapolu Property is approximately 1,095 km2 in size and is located within the Gbapolu, Lofa and Grand Cape Counties of Western Liberia. It is a diamond prospect located on Archean craton immediately adjacent to an area of known kimberlites as documented by Mano River Resources. Extensive alluvial artisanal diamond mining by locals in the area suggests the presence of diamondiferous source rock.
The Grand Gedeh Property is approximately 718.72 km2 and is located within Grand Gedeh County in eastern Liberia. This property borders the Cestos Shear trend, the southern extension of the Syama Gold Belt which hosts several gold mines in the Ivory Coast and Mali.
Diamond Fields may earn 70% of Ducor’s interest by issuing to Ducor 1,000,000 shares in five annual installments of 200,000 shares each, and by spending US$2,000,000 on exploration over the next four years. Ducor has the right to request $30,000 in lieu of one-half of each annual stock issue, and Diamond Fields has the right to pay $60,000 in lieu of one-half of each annual stock issue. Diamond Fields may withdraw from the project at any time.
These new projects will be rolled into Diamond Field’s ongoing exploration effort in Liberia. A field crew has recently completed the first pass of heavy mineral sampling on Diamond Field’s Nimba County concession in north central Liberia on the border with Guinea, and the crew is currently collecting stream sediment and soil samples on DFI’s gold property located near the Cestos Shear zone in south central Liberia.
Mr. Gregg J. Sedun, President and CEO of Diamond Fields stated: “This prospective project expands our opportunities for exploration in Liberia. Our agreement with Ducor increases Diamond Fields total exploration area in Liberia to over 5000km2 including the Nimba County and Cestos Belt properties the Company has already begun exploring. Although all these prospects are in the early stages, I feel we are well positioned in a country with great mineralogical potential.”
Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing mineral exploration 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 mineral exploration 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, Chief Executive Officer and Director
For further information contact: Investor Relations (1-888-682-2113)
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. All dollar amounts are reported in U.S currency unless otherwise indicated.