DFI to reassess Marshall Fork

Having recently resumed diamond production from the Marshall Forks area of its Luderitz offshore diamond concession in Namibia, Diamond Fields International (DFI-T) reports the recovery of 4,700 carats of gem quality diamonds from Mining License ML111.

DFI says the contracted mining vessel, m.v. Anya, has been producing recovery grades 250% better than those outlined in MRDI’s 2001 feasibility study.

The company’s director of operations, Roger Daniel, said in a prepared statement, “The additional capacity and power of the 24-inch airlifts with pebble jetting certainly offers significant improvement over the single 20-inch airlift system previously employed. We are generating highly profitable production from this and creating a positive cash flow.”

DFI’s chief geologist, Randal Cullen, says, “re-mining by the m.v. Anya in an area previously mined by the Trans Hex joint venture achieved a recovery of 0.5 carats per square metre, a highly mineable grade.” The company plans to test recoveries from other previously mined areas.

Based on the latest results, the company is also looking at conducting an independent reassessment of the resource over the next few weeks.

A 2000 independent feasibility study put Marshall Fork’s indicated and inferred resource at 1.99 million cubic metres grading 0.29 carat per cubic metre. Diaz Reef hosts 4.12 million cubic metres averaging 0.13 carat. The estimates are based on a cutoff grade of 0.15 carat per sq. metre, a diamond price of US$175 per carat, and overburden.

Meanwhile, DFI reports that it recently sold 3,532 carats of diamond production from its Luderitz concession for an average of US$132.52 per carat. The tender sale was conducted in Antwerp through Diamond Tenders (Belgium).

Last summer, DFI’s former partner, Trans Hex Group, withdrew its MV Namakwa airlift mining vessel from the Marshall Fork marine diamond deposit, and called an end to the companies’ joint venture a few days later. The move resulted from a dispute related to recovery rates for which Trans Hex was financially liable.

DFI responded by filing a claim with the High Court of South Africa seeking US$19.5 million in damages from Trans Hex. Late last year, a settlement between the two saw DFI receive a about US$500,000, including US$300,000 in cash as payment of all penalties. The remaining US$200,000 represents forgiveness of debt due Trans Hex from DFI for past diamond sales.