Valozoro Nickel Update

Mar 4, 2004 | 2004, Corporate News

Vancouver, March 4, 2004—Diamond Fields International Ltd. (TSX: DFI) announces results from its initial reconnaissance sampling of the Valozoro lateritic nickel deposit located 60 kilometres north of the town of Fianarantsoa in southcentral Madagascar. Results confirm the presence of a high grade nickel deposit at the Valozoro site. The reconnaissance sampling collected one meter chip and channel samples through the lateritic profile by re-visiting 18 of more than 454 pits excavated on the property during 1956 and 1957. In addition, mineralization was sampled in road cuts and hillside exposures, and 170 of the old pits were located and logged for depth.

Although some pits reach a depth of 17.5 meters, equipment constraints restricted sampling to pits with a maximum depth of 8 metres, and confined sampling results mainly to the upper 6.6 meters of lower-grade material. Sampling returned grades between 0.61% and 1.77% nickel over thicknesses of 4 to 6 meters in 10 of the 18 pits sampled in this upper horizon. Improved grades were seen where sampling reached the serpentinised lower part of the deposit, with intervals between 3.5% and 5.9% nickel in three pits. Samples were processed at the Anglo American Research Lab in Johannesburg.

Grab and chip samples collected in road cuts and slump exposures of the laterite horizon returned values as high as 8.56% nickel from the argillaceous serpentine of the exposed lower horizon.

In November 2003, Diamond Fields negotiated the exclusive right to acquire a 100% interest in the Valozoro property, on which UGINE, in the 1950’s, reported a resource of 3.7 million tonnes grading 1.75% nickel for 65,000 tonnes of contained nickel. This is an historical resource estimate which does not comply with National Instrument 43-101 standards of disclosure. Diamond Fields’ exploration plans include a continuation of the sampling to build a more accurate and complete picture of nickel grade and tonnage, as well as prospecting the vicinity for additional mineralization. Diamond Fields development plans for this deposit include assessment of the costs to mine and ship concentrate from the site to in-country mills or offshore processors.

Mr. Randal Cullen, Chief Geologist for Diamond Fields International is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by Diamond Fields.

Diamond Fields International Ltd. is an internationally active exploration and mining company pursuing diamond and nickel opportunities worldwide. The Company’s corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international diamond and nickel projects. In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide.

“Gregg J. Sedun”
Gregg J. Sedun, President and Chief Executive Officer
For further information contact: Investor Relations (604-682-2113)

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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