Cape Town, May 16th, 2006 – Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to report the important recovery of a gem quality diamond from an exploration pit on its Grand Cape property in Liberia and an update with respect to its marine diamond mining project in Namibia.
Liberian Diamond Exploration
DFI geologists have recovered a 0.1 carat gem quality octahedral diamond from an exploration pit on a kimberlite target in Liberia. The pit was excavated as a follow up to the recovery of G10 garnet indicators in a recessive area of swampy ground. A sample from the pit contained large quantities of kimberlitic ilmenite and garnet as well as the diamond. The target is anticipated to be a northeast trending diamondiferous dyke of unknown strike extent. The recessive feature being explored extends for over 2km. Further work will include completion of additional pits along and across strike.
The company has completed cutting a 1 km by 1 km grid over its initial kimberlite discovery, anticipated to be a pipe. That body and a smaller satellite will be mapped with ground geophysics to confirm their size and prepare for drilling of core samples.
Preparation of grids in the heavily forested terrain is ongoing to allow mapping of several other targets where pitting has recovered either fragments of kimberlite or large quantities of untransported kimberlite indicators, indicating the kimberlite matrix has been weathered away.
KIM reconnaissance samples are jigged in the field to create approximately 1 kg of heavy mineral concentrate, sieved and analyzed in DFI’s sample processing facility in Monrovia with selected high interest grains being sent to Nexo Labs in South Africa (ISO14001 accreditation has been applied for) for confirmation. Selected indicator minerals are microprobed at the analytical facility of the University of Johannesburg (a merger between Rand Afrikaans University and Wits University). Results of the sampling programs have been reviewed, verified (including sampling, analytical and test data) and compiled by the Diamond Fields’ geological staff supervised by Mr. Randal Cullen, P.Geol., a “Qualified Person” as indicated under NI 43- 101.
Namibian Marine Diamonds
The Company’s mining vessel MV DF Discoverer is scheduled to temporarily cease mining from 7 June 2006 and return to Cape Town for its statutory 2.5 yearly dry dock inspection for continuance of class certification. At the same time certain refit, maintenance and upgrade engineering work will be undertaken with the objective of improving operating times and efficiencies. Mining operations in Namibia are planned to be resumed at the end of July and cost of the works is estimated at US$1.5 million. The Company is considering alternatives for securing additional financing required to cover these costs.
Diamond Fields International Ltd. and Moydow Mines International Inc. (TSX: MOY)(AIM: MOY) (“Moydow”) announced in press releases dated March 1, 2006 that they had reached an agreement effective February 28th, 2006 pursuant to which Moydow security holders will exchange their Moydow securities for securities of Diamond Fields (the “Acquisition”). The Acquisition remains subject to various conditions as previously announced. Moydow, like Diamond Fields, is engaged in mineral exploration and development worldwide.
DIAMOND FIELDS INTERNATIONAL LTD.
“Roger J. Daniel”
Roger J. Daniel, President and CEO
For further information, contact Greg Girdler, Investor Relations at (604) 288-1400
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.