Cape Town, August 8th , 2006 – Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to report on continuing reconnaissance and development success on its Liberian joint venture properties and also provides updates on other operating corporate matters.
In Liberia nine kimberlite targets have been generated with 75% of the reconnaissance sampling completed. Two targets are pipe-like bodies, three are inferred dyke trends in excess of 500 m long. Ground magnetic anomalies are present, coincident with interpreted kimberlite pipes and dykes on the three targets surveyed. The Company is investigating the possibility of mobilizing a diamond recovery plant to Liberia to facilitate bulk sampling of kimberlites for grade. One kilometer long by 500m wide sampling grids over high grade gold anomalies have been completed on both Grand Cape and Grand Gedeh properties. Results are anticipated by the end of August. Field work has been suspended until the end of the rains in mid September.
Liberian Diamond Exploration
After follow up sampling on kimberlite targets generated by stream sediment reconnaissance work, DFI has nine areas requiring further development work. Of these, the Company has advanced to mapping, grid sampling, and pitting(1) on five areas, with ground geophysics completed on three. Magnetic response indicative of kimberlite is present on all three of these, confirming the presence of two pipe-like bodies on Grid 4 and a dyke trend in excess of 500m long on Grid 3. Macro-diamonds (0.05 cts, 0.08 cts and 0.22 cts) have been recovered during grid sampling and pitting of a fourth 3 km long dyke target on Grid 5.
Geophysical response of the pipes on Grid 4, sampled at 25m intervals along the line and 50m between lines, indicated discreet non-linear anomalies. The area of the pipes could not be confirmed by the magnetics, but they are inferred from the size of the swamps within which they occur to be approximately 3 hectares (ha) and 1 ha respectively. The extensive (>500m) dyke trend on Grid 3 was surveyed at 10m intervals across strike, with response indicating widths of the anomaly of 5m or more. Alternatively, there are a series of smaller parallel striking dykes within a 5m wide or greater zone. The dyke continues off the geophysical grid in both northeast and southwest directions. On Grid 5, two parallel dyke trends about 150m apart extend up to three kilometers along strike.
These targets will require further investigation with geophysics (EM and/or ground penetrating radar) and drilling to confirm dimensions. A comprehensive test of grade by bulk sampling these targets is planned after pitting on one pipe target failed to produce diamonds. The acquisition of a small diamond recovery plant is being considered to facilitate analysis of bulk samples of the kimberlitic material for grade under secure conditions.
Liberian Gold Exploration
Artisinal mining of high grade quartz veins assaying 13 grammes / tonne gold across 1.5m vein width on the Grand Cape property at Henry Town, and visible gold in stream sediment samples(2) from the Grand Gedeh property adjacent to the Cestos Shear Zone prompted the Company to proceed with soil sampling and mapping grids over these targets to explore along and across strike extensions of this mineralization. Soil sample grids have been completed over these targets with the collection of over 300 samples. These samples are being dried and screened at DFI’s heavy mineral laboratory in Monrovia before shipment for gold analysis by Anglo American Research Laboratories in Johannesburg. Results are expected by the end of August. Further work on these targets will include trenching to determine widths and drilling if warranted to explore for along strike continuity of grade and thickness.
Kimberley Process in Liberia
The Liberian Department of Minerals and Energy is making rapid progress with development of infrastructure to support registration of diamond output under the Kimberley process. Entrance to the group of countries certified under the process, which already includes Liberia’s immediate neighbors Guinea and Sierra Leone, is anticipated by the 4th quarter of 2006.
Mining vessel and corporate matters
As announced in previous news releases, the Company’s vessel M.V. DF Discoverer is in Cape Town for its scheduled dry docking, maintenance and refit programme. The statutory dry docking has been completed and other scheduled work is in progress. The overall programme has been delayed as a result of late entry into the dry dock due to time overruns with other vessels previously occupying the dock, poor weather with severe winter storms affecting the region, and in finalizing arrangements for the Company’s ongoing financing. Details of the financing are nearing completion, and it is expected that such details will be released shortly. It is now anticipated that the vessel will resume mining in Namibia in September.
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 Company announces that all the necessary stipulations required under the terms of the agreement were not reached in a timely fashion and the agreement has terminated. The parties remain in discussion as to how best to proceed. 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 Roger Daniel or Randal Cullen at +27 21 425 1990
(1) Kimberlite exploration 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).
(2) Soil samples for Gold analysis are sieved and dewatered in the field then dried and re-sieved into three fractions and analyzed for visible gold (VG) at DFI’s sample processing facility in Monrovia. The fine fraction of samples that do not contain VG are sent to Anglo American Research Labs in South Africa for Fire Assay and ICP analysis. Results of the sampling programs are 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.
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.