AFRICA — Diamond Fields Int’l plans public offering

Diamond Fields International intends to spend $15 million this year to advance its fully owned offshore marine grants in the southern African nation of Namibia.

The work program will be partially financed with funds raised through an initial public offering, to be held later this year. The company was formed after its parent company, Diamond Fields Resources, which discovered the Voisey’s Bay copper-nickel-cobalt deposit in Labrador, was taken over by Inco.

The 1998 program, according to Diamond Fields President Daniel Johnson, is designed to enhance and expand the resource base at the concession. A sampling program in the mid-1990s covered less than 2% of the 660-sq.-km seabed concession, and established an indicated and inferred resource of more than 1.1 million carats.

“Diamond Fields is back in business as an active mineral exploration and development company, and we intend to become a developer and producer of significant diamond properties throughout the world,” says Johnson. “We are confident that the Luderitz grants will yield sufficient diamonds to become an economic mine.”

Sampling and technical services will be supplied by Benguela Concessions, a South African company founded by diamond expert John Gurney. All necessary permits are in place.

This year’s program consists of three objectives, including: * grid sampling and trial mining of current resources in an attempt to develop reserves, technical information and a detailed feasibility study; * detailed sampling of geological extensions of known resources to expand the resource base, as well as reconnaissance sampling of two geological features to verify the existence of a potential multi-million carat resource; and * the development of scenarios for both continued sampling and an expanded operation, based on a 500,000-carat-per-year mine plan.

Once the 8-month program is completed, a final feasibility study will begin.

The report is scheduled for completion in early 1999.

Robert Friedland owns 13.1% of Diamond Fields International, whereas Jean-Raymond Boulle holds a 12.7% stake.