Diamond Fields International Ltd. (DFI-TSE) is pleased to provide an update of the Company’s joint venture activities with Trans Hex Group of South Africa in the western fork of its Marshall Fork feature, offshore Namibia where the joint venture has been mining since December 30, 2001.
> Mined grade greatly exceeds feasibility study grade
Randal Cullen, DFI’s Chief Geologist, is pleased to announce that recovered diamond grades achieved in the current area of mining have been consistently better than grades estimated by MRDI in the October 2000 feasibility study. For the month of January the mined grades were 170% of the estimated grades. Bedrock has been reached in all of the mined area, enabling recovery of both the older diamond deposits below the clay and beachrock false footwall layers and the younger deposit above the false footwall. The Western Fork was the most highly sampled area in DFI-De Beers’ 2000 sampling program using Wirth drill technology.
> Resources at Marshall Fork could increase significantly
Mr. Cullen stated: “We are encouraged by this result as it indicates that resource estimates in other areas of Marshall Fork and Elephant Basin where similar geology exists are probably conservative. This could mean an upgrade to the resources estimated by MRDI for 1.7 million square meters of the joint venture area, adding an additional 290,000 carats or 45% to the joint venture area.”
> Production in January 2002 reaches 11,800 diamonds weighing 4,000 carats
Roger Daniel, DFI’s Operations Director, reported that mining operations for January 2002, the first month of mining on the Western Fork, have progressed well and have yielded over 11,800 diamonds weighing 4,000 carats of gem quality diamonds. The mv Namakwa has only been in operation since November 2001 and mined in the Eastern Fork prior to December 30, 2001.
> High pressure water jetting system creates diamond recovery windfall
Investigation and analysis by Trans Hex have shown that high pressure abrasive jetting systems as employed by the mv Namakwa yields up to approximately 30% more diamonds on a second pass of mining when compared to a first pass of mining which does not utilize the jetting system.
> Rough diamond market prices surge
Diamond Tenders Belgium N.V., DFI’s 24%-owned marketing company, reported that the market for rough diamonds has surged since its lows following the September 11 th events. Recent sales have shown that DFI has realised an increase of just over 20% in its sales price per carat from October 2001 to January 2002.
The joint venture will continue to report the production and profitability of its mining operations on a quarterly basis.
ON BEHALF OF THE BOARD OF DIRECTORS OF
DIAMOND FIELDS INTERNATIONAL LTD.
Francis J. Waldron
Chairman and Chief Executive Officer
For further information contact: (604) 682-2113
Investor Relations: Don Halliday (604) 623-4708
Website – www.diamondfields.com
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.