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RAPAPORT... Diamond Fields International sold some 3,728cts of rough in late August for $872,813, at an average price of $234.13 per carat. This sale included a 2.45 carat pink diamond that sold for $41,089. Total production sales from the marine operations with joint venture partner Bonaparte Diamond Mines stands at $3.138 million. Under the agreement, Bonaparte has the right to 30 percent of the proceeds and is obligated to pay 30 percent of agreed operating and sales costs.
Unusually severe winter weather off the coast of southern Africa caused production problems for the partners. Available mining time and production was affected by labor downtime and equipment failure all due to severe weather. Storms also prevent the mining vessel from anchoring at times.
Production is expected to again increase in the December 2007 quarter with improving seasonal conditions and return to full operational capacity as a result of vessel equipment repairs.
Additionally, Bonaparte has contracted the marine diamond sampling vessel MV Douglas Bay from De Beers Marine for a second sampling program. This program is planned to begin in late October 2007. This vessel was used successfully in 2006 to define the initial mining resource of 63,000 carats.
Roger Daniel, Diamond Field's president and CEO, said, "We are delighted that our joint partner Bonaparte is embarking on a second round of resource development sampling. Our expectation for the expanded area in ML111 is that it will provide the platform for defining substantially larger diamond mining resources to allow us to progressively increase diamond production from 2008 onwards. The objective is to delineate an additional resource of some 200,000 - 400,000 carats in the expanded area in 2007/2008 to support mining for several years and allow serious consideration to be given for the introduction of a second mining vessel."
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