Diamond Fields recovers more carats (March 17, 2003)

Diamond Fields International (DFI-T) has recovered an additional 4,800 carats of diamonds from the Marshall Fork deposit on the Luderitz diamond concession, off the shore of Namibia.

Since resuming mining earlier this year, the company has recovered about 9,500 carats of diamonds. In late January, DFI reported the recovery of 4,700 carats of gem-quality diamonds from Marshall Fork.

Randal Cullen, DFI’s chief geologist, says mined grades continue to exceed MRDI’s feasibility-study estimates.

“The Marshall Fork marine diamond deposit is proving to be an exceptional asset,” he adds.

So far, the contracted mining vessel M.V. Anya has recovered the entire year’s haul. The ship is equipped with dual 24-inch airlifts accompanied by a pebble-jet system, whereas previously a single, 20-inch airlift system was used.

Encouraged by the results achieved in January, DFI laid plans to add a second mining vessel to the Luderitz concession. However, the recently contracted Lady S, outfitted with a single 24-inch pebble-jet airlift system, has not performed satisfactorily. The ship has returned to Cape Town so that a slew ring on one of its deck-mounted cranes can be repaired.

The same contractor operates both vessels.

DFI recently sold 3,215 carats for an average of US$146.91 per carat. That exceeds the average price of US$132.52 per carat for a 3,532-carat package in January. DFI says the improved price reflects an increase in the average stone size and the strengthening markets for rough diamonds.

Both sales were conducted in Antwerp through Diamond Tenders Belgium, in which DFI owns a 24% stake and which is controlled by the company’s largest shareholder and current chairman, Jean-Raymond Boulle.

DFI’s main concession covers more than 70 km of coastal waters between Hottentot Point to the north and Diaz Point to the south, centred at Luderitz. Within that area are the diamondiferous Marshall Fork, Diaz Reef and Conical Beach features.

On the financial front, DFI finished the recent fourth quarter with a loss of $593,958, up from a year-earlier loss of $227,096. General and administrative expenses more than doubled to a shade more than $1 million, owing to increased legal and consulting expenses associated with a proxy battle in November 2002.