Diamond Fields / Samicor Joint Venture Commence Mining Operations in Namibia

Jun 9, 2004 | 2004, Corporate News

Vancouver, June 9, 2004 – Diamond Fields International Ltd. (TSX: DFI) is pleased to announce that today, mv Kovambo commenced diamond mining on Diamond Fields’ marine mining license ML111 located near Luderitz, Namibia under the terms of the joint venture agreement with Samicor Mining Services (Pty) Ltd. (“Samicor”). Samicor is owned by LL Mining Corporation, the mining arm of the Leviev Group of Companies, one of the world’s major diamond companies.

Over the past 10 days, Samicor’s chartered vessel mv Kovambo with the integrated 3rd generation Seabed Crawler (“Seabed Crawler”) and diamond processing plant has undergone and successfully completed commissioning and sea trials off the southwest coast of South Africa.

The mv Kovambo is a 104 metre, 3,300 ton vessel equipped with an integrated mining and processing system developed at a cost of approximately US$30 million, including the upgraded Seabed Crawler mining tool, launch, recovery and heave compensation equipment, a 50 ton per hour dense media processing plant, and a high security final recovery X-ray sorting plant. The Seabed Crawler is a 160 ton remotely controlled tracked mining vehicle with very high production capacity.

The mining system installed on mv Kovambo has proved itself capable of consistently high production levels in the geological conditions found in the Marshal Fork marine deposits. The Seabed Crawler mining system was successfully deployed in Namco’s (Namibian Minerals Corporation) Luderitz Bay Grant (ML51) license area which is immediately adjacent to Diamond Fields’ Marshall Fork concession. It commenced mining operations in 1998 on Namco’s cross concession boundary extensions to Diamond Fields’ Marshall Fork deposits, and in total produced approximately 400,000 carats of 95% gem quality diamonds. Production from these extensions peaked at over 200,000 carats in 1999, including a single day when 16,271 carats were recovered.

“We are obviously very pleased to be resuming diamond production on schedule at Marshall Fork, now that the mv Kovambo is on site and mining has commenced. The mv Kovambo’s demonstrated production capability should optimize development of our outstanding marine diamond resource. We look forward to a significant increase in the level of diamond production from ML111, resulting in enhanced cash flow for the Company.” says Mr. Gregg Sedun, President and CEO of Diamond Fields International. Pictures of the mv Kovambo and SeaBed Crawler can be found at www.diamondfields.com.

On other news, the Company reports that it has successfully renegotiated its debt of approximately US$2.35 million owed to a company owned and controlled by the Company’s controlling shareholder Jean-Raymond Boulle,. Pursuant to the terms of a Convertible Promissory Note, the debt is repayable over a period of two years, with the principal on the Note bearing interest at a rate of 6% per annum with a conversion right to allow the noteholder to convert all or a portion of the debt into common shares of the Company at any time while the debt remains outstanding at a conversion price of CDN$0.60 per share.


“Gregg J. Sedun”

Gregg J. Sedun
President and Chief Executive Officer

For further information contact Investor Relations (1-888-682-2113)
Website: www.diamondfields.com

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.

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