Diamond Fields aims for AIM

Vancouver — Spurred by “significant interest” from the European market, Diamond Fields International (DFI-T) is actively pursuing a listing on the London Stock Exchange’s Alternative Investment Market (AIM) as part of a broader effort to improve its bottom line and pursue expansion opportunities.

The company is looking to acquire a second marine mining and exploration vessel and reduce debt associated with the 2004 acquisition and subsequent retrofit of its first mining vessel, MV DF Discoverer.

The company commissioned the 68-metre vessel earlier this year, and resumed mining at its offshore concessions in Namibia in June. To the end of September, 6,365 carats were recovered, with three parcels totalling 4,948 carats sold at an average price of US$194 per carat for proceeds of just under US$1 million.

MV DF Discoverer is equipped with twin 24-inch airlifts, a 30 tonne-per-hour dense media separation plant, and twin Caterpillar diesel engines.

Diamond Fields reports that the vessel experienced more downtime than expected, owing to poor seasonal weather conditions and “onboard equipment issues.”

The company plans to increase production by improving operating systems and mining-related technology, including pursuing deployment of the new Sea Diamond Miner technology. An exploration program to identify areas with high-grade resources is also planned.

Diamond Fields reported revenue of US$5.4 million for the year ended June 30, 2005, and a net loss of US$3.8 million after vessel repair and maintenance and administrative expenses.

The company has other diamond projects in Africa, including an early-stage concession in Liberia. Recent sampling on the Grand Cape property has shown targets with high levels of kimberlite indicator minerals that will be further tested by sampling and possibly drilling.

Another early-stage project in Liberia is prospective for gold.

Diamond Fields also holds nickel properties in Greenland, including two projects optioned to Inco (N-T, N-N). The nickel giant recently completed a drill program on the properties, and Diamond Fields says it will report any material developments when assay results are in hand.