(Cape Town, July 16, 2007) – Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to announce the successful conclusion of discussions with Joint Operations (JO) partner, Bonaparte Diamond Mines NL (“Bonaparte”) to expand the scope of the operations in DFI’s ML111 mining license, offshore Namibia.
The Company and Bonaparte recently signed an amendment to the existing JO Mining Agreement whereby the original 1.6km2 JO area in the Diaz Reef Prospect of DFI’s ML111 license off Luderitz, Namibia has been expanded to a total prospective area of 10.8 km2. The expanded JO area will be sampled by Bonaparte at its cost with the objective of substantially expanding the mining resources available to the JO mining operations.
In terms of the amendment to the existing JO Resource Development Agreement and the JO Mining Agreement between Diamond Fields Namibia (Pty) Ltd (DFN) a wholly owned subsidiary of DFI and Bonaparte Diamond Mines (Namibia) (Pty) Ltd (BDN), a wholly owned subsidiary of Bonaparte, the expanded JO area incorporates the existing Diaz Prospect 1 (DP1) and Diaz Prospect 2 (DP2) areas. While DFN is the Mining Operator DFN and BDN will share the operations costs, diamond marketing costs and gross sales proceeds from production in proportion of 65% to DFN and 35% to BDN. Bonaparte will expend an amount of not less than N$5,000,000 (Five million Namibian Dollars) directly on resource development within the expanded JO area in ML 111 over a period of 2 years from the effective date of this agreement. For continuity of joint operations mining and flexibility of mine planning, exploration sampling by Bonaparte will be undertaken as soon as practically possible (during calendar 2007 or as soon as possible thereafter) subject only to availability of a suitable sampling vessel. In all other respects, DFN and BDN affirm the terms of the Agreement and the JO Agreement.
In the current DP 1 JO mining area, June 2007 production was 1,561.56 carats at an average size of 0.45 carats/stone. The lower monthly production was due primarily to increased downtime from periods of unusually severe winter weather that directly restricted operations and also caused certain mechanical and technical problems. Total production for the Quarter to June 2007 stands at 8,280 carats at an average size of 0.41 carats/stone. Total production from commencement of mining now stands at 12,318 carats to the end of June, 2007.
The fourth diamond sale, and largest to date from joint mining operations, of 3,850 carats was completed in Belgium and realized a total revenue of US$773,369 at an average price of 201$/ct. To date a total of 10,567 carats have been sold at an average value of 214$/ct.
Roger Daniel, DFI’s President and CEO, commented: “We are pleased to be expanding the scope of operations with our JO partners Bonaparte which we anticipate will result in substantial additions to the resource base in the short term enabling improved mine planning options, providing a basis for increased production levels and may allow us to consider the introduction of a second production unit”.
Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the Company’s President and CEO, is a Fellow of the South African Institute of Mining and Metallurgy (SAIMM) and is also a registered geological scientist with the South African Council for Natural Scientific Professions (SACNASP) and is thus a Qualified Person in terms of National Instrument 43-101, has compiled and reviewed the scientific and technical information contained in this News Release.
DATED July 16, 2007.
DIAMOND FIELDS INTERNATIONAL LTD.
“Roger J. Daniel”
Roger J. Daniel, President and CEO
For further information, contact Roger Daniel at +27 21 425 1990
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 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.