Steinmetz sells Rockwell vivid yellow 8.88 carat stone for excellent margin
VANCOUVER, Nov. 12 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports that it has recovered three exceptional coloured stones from the Saxendrift alluvial diamond mine in South Africa. In addition, an outstanding 8.88-carat vivid yellow stone recovered by Rockwell earlier in 2009 has been manufactured and sold by the Steinmetz Diamond Group ("SDG").
Recently recovered stones
Rockwell has during the month of October recovered three high-quality coloured diamonds, comprising a salmon-pink stone of 30.54 carats and two intense fancy yellow stones of 35.54 carats and 36.32 carats from its Saxendrift mine on the Middle Orange River. The three stones have the following characteristics:
- Salmon pink stone: This 30.54-carat stone is a mixed colour,
including pink, orange and brown. The rough diamond form is flat
and elongated and approximates a Marquise shape in the rough. It
is of excellent clean clarity and is a makeable stone, which
should yield a good recovery factor in the polished product in
spite of its flattened elongate shape.
- Intense fancy yellow: This 35.54-carat stone is clean and of
excellent clarity. The shape represents a blocky form, which was
previously octahedral, and that has had all its sides removed
through wear and abrasion during extensive high river transport.
- Intense fancy yellow: This 36.32-carat stone is of excellent clean
clarity. The shape is octahedral, although three corners are
broken and this has left slight indentations in the stone, which
will result in a lower recovery factor in the polished form than
the 35.54-carat stone above.
These three stones are being processed under the beneficiation agreement with SDG. SDG manufacturing provides value enhancement in the cut and polished form, and thereby yielding excellent margins from the sale of the finished product.
In early November, SDG successfully concluded the sale of an exceptional cut and polished 8.88-carat vivid yellow diamond. This diamond was manufactured by SDG in South Africa from a 22.74-carat, intense yellow stone from the Saxendrift mine. As a consequence of the expert local beneficiation skills yielded, there is enhancement in the final colour intensity of the polished product as compared to a lighter colour in the rough diamond. Rockwell will achieve a margin of about 43% above the original rough diamond price.
President and CEO John Bristow stated "Our Saxendrift mine continues to yield an array of exceptional diamonds, including large stones and smaller rare fancy stones of exceptional colour. We expect the latest coloured stones to attract strong rough prices in an improving market.
We are also particularly pleased that, as has been the case with a significant number of other Rockwell rough diamonds, the recently sold 8.88-carat manufactured stone from Saxendrift was beneficiated locally by skilled South African cutters and polishers, ensuring that Rockwell and its Partner support the development of the local diamond beneficiation industry. Our joint venture with SDG continues to provide Rockwell with financial benefits and has helped the Company generate additional cash flow in tough market conditions."
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 40-F filing with the United States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are available at www.sedar.com.
SOURCE Rockwell Diamonds Inc.
For further information: For further information: on Rockwell Diamonds Inc., please visit the Company's website at ww.rockwelldiamonds.com, or contact Investor Services, at (604) 684-6365, or within North America at 1-800-667-2114