VANCOUVER, Oct. 27 /CNW/ - Rockwell Diamonds Inc ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the premiums achieved
from the sale of three cut and polished stones through its agreement with the
Steinmetz Diamond Group ("SDG"). These stones were recovered from its
Makoenskloof project and Wouterspan mine, located in the Middle Orange River
area of South Africa.
Three exceptional yellow gemstones, manufactured by SDG from rough
diamonds produced by Rockwell, have now been sold to buyers in southeast Asia.
The finished stones included:
- a 102-carat, vivid yellow cut from a 212-carat, yellow rough diamond;
- two matching, 10-carat, vivid yellow diamonds cut from a 36-carat
yellow rough diamond.
As a consequence of the sale of these three manufactured stones Rockwell
- a 50% premium on price over and above the rough diamond value
realized for the original 212-carat stone;
- an 80% premium on price over and above the rough diamond value
realized for the original 36-carat stone;
- an increase in value realized from these stones and achieved through
the manufacturing skills and marketing expertise of SDG, resulting in
additional revenues of approximately US$2 million to Rockwell.
President and CEO John Bristow noted "We are encouraged by the
outstanding margins that have been achieved through the cutting and polishing
of Rockwell stones. We have seen margins of 10%, 17%, 50%, and 80% on four
stones and are seeing the benefit of our unique long term beneficiation
agreement with our partners at SDG. We have a pipeline of product going
through the SDG facility and expect to see further strong returns to the
Company. This additional revenue received for our beneficiated product
provides Rockwell with flexibility in respect of our approach to our diamond
sales in the current environment of turbulent financial markets."
President and CEO
No regulatory authority has approved or disapproved the information
contained in this news release.
Forward Looking Statements
This release includes certain statements that may be deemed
"forward-looking statements". Other than statements of historical fact all
statements in this release that address future production, reserve or resource
potential, exploration drilling, exploitation activities and events or
developments that each Company expects are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and
exploration successes, changes in and the effect of government policies
regarding mining and natural resource exploration and exploitation,
availability of capital and financing, geopolitical uncertainty and political
and economic instability, and general economic, and market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those projected in the forward-looking statements. For
more information on Rockwell, Investors should review Rockwell's annual Form
20-F filing with the United States Securities and Exchange Commission
www.sec.com and the Company's home jurisdiction filings that are available at
For further information:
For further information: on Rockwell Diamonds Inc., please visit our
website at www.rockwelldiamonds.com or contact Investor Services at (604)
684-6365 or within North America at 1-800-667-2114