Resource Development Progress and Vessel Update

Oct 3, 2006 | 2006, Corporate News

(Cape Town, October 3, 2006) – Diamond Fields International Ltd. (DFI:TSX) (“DFI” or the “Company”) is pleased to report encouraging initial results from the resource development sampling being conducted by Bonaparte Diamond Mines NL (ASX: BON) (“Bonaparte”) under a joint operations agreement and the expected resumption of mining operations by late October.

During the first four days of sampling by Bonaparte (up to 25th September) in the joint operations area in ML111, offshore Luderitz, Namibia, diamonds have been recovered from 61% (31 samples) of the 51 samples completed producing a total of 57 stones weighing 23.78 carats (ct). Multiple diamond recoveries (more than 1 stone) have been returned from 15 samples (29%). A high proportion (39%) of the diamonds are 0.4ct or greater in size with the largest diamond being a 1.94ct stone. Subsequent to 25th September a diamond, estimated by geologists onboard the vessel to be approximately 3.0ct, has been recovered. The quality of the stones recovered to date appears typical of Namibian marine production where historically more than 95% of diamonds are gem quality.

Summary of results:

-----------------------------------------------------------------------
                                                        St       Ct
                                                     (greater (greater
                                                Size   than)    than)
Samples  Positive  Multiple  Diamonds  Carats  Range   0.4ct    0.4ct
-----------------------------------------------------------------------
   51       31        15        57      23.78  0.12 -   22      13.73
                                               1.94
-----------------------------------------------------------------------
            61%       29%                               39%      58%
-----------------------------------------------------------------------

To date sampling has focused on a well defined geological feature in the central part of the Diaz Point 1 (DP1) area where results indicate near-continuous mineralization in an area of approx 30,000 m2. DP1 has a total area of 1,200,000 m2. Sampling operations are scheduled to continue until the third week in October with an option to extend the programme a further 10 days.

The sampling programme is focused on recovering diamonds from a regularly spaced grid of sample sites at sufficient density for estimation of NI 43-101 and JORC compliant resources to the “Indicated” category. Under the terms of the Joint Operations agreement Bonaparte will retain a 30% participating interest in mining of any Indicated Resource identified within the joint operations area. Operations are being conducted from the dedicated sampling vessel mv Douglas Bay, contracted by Bonaparte from DeBeers Marine in Cape Town, South Africa.

Marine diamond samples from this programme are initially processed in a secured and CCTV monitored plant on board the sampling vessel. Marine gravels are screened and concentrated via dense media separation and X-ray sorting. X-ray concentrates are canned on board and transferred to a secure shore base and CCTV monitored sorting facility for final recovery, weighing and logging of diamonds. All aspects of diamond transport are supervised by the Protected Resources Unit (PRU) of the Namibian Police.

Results of the sampling programs have been reviewed, verified (including sampling, analytical and test data) by Mr. Randal Cullen, P.Geol., a “Qualified Person” as indicated under NI 43-101.

The Company also reports that the engineering work programme on its vessel mv DF Discoverer is nearing completion. It is expected that the vessel will return to Namibia and resume mining operations in late October.

Roger Daniel, President and CEO commented: “We are excited by the initial results from the Bonaparte sampling operations which create the potential for delineation of a significant, indicated resource in the joint operations area thereby adding to our resource base. We also look forward to resumption of marine diamond mining with our own vessel and expect improved operating availability and efficiency following the repair, maintenance and upgrade programme.”

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
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.

More News