DIAMOND PAGE — Diamond Fields sampling concessions in Namibia

Unlisted Diamond Fields International will use part of a US$3-million financing to conduct a sampling program at its diamond concessions in Namibia.

The work will be financed with proceeds from a private placement of 10 million special warrants priced at 30 cents each. The warrants consist of one share plus one purchase warrant entitling the holder to buy an additional share at 40 cents in the first year and at 60 cents in the second.

Sampling at the ocean concession, near the coastal town of Luderitz, is expected to begin in October, but the company is still in discussions with an unnamed major to act as operator. Initial test mining will be conducted on areas of known mineralization, and subsequent phases will attempt to upgrade and expand resources, currently pegged at 993,000 in the indicated category and 155,000 carats in the inferred category.

Diamond Fields has been mining at a nearby shallow-water concession since April and will attempt to increase production to 500 carats per month by the end of the year.

In order to focus on its Namibian projects, the company has sold its non-producing Frank Smith and Loxton Dal diamond mines in South Africa for a total of US$350,000.