VANCOUVER, Sept. 17, 2013 /CNW/ - Rockwell Diamonds Inc. ("Rockwell" or the "Company") (TSX: RDI; JSE: RDI) is pleased to announce that it has recovered four rough diamonds each exceeding 100 carats in weight, from its operations in the Middle Orange River ("MOR") region during the past three weeks. In addition, the Company has recovered a higher than average number of diamonds smaller than 100 carats. This reinforces management's decision to focus operations in this region and embrace new processing technology.
Two stones weighing 116 carats and 138 carats were recovered at the Saxendrift processing plant from gravels originating from the Saxendrift Extension pit. In addition, a 126-carat stone and a 169-carat stone were recovered from a mining area that has recently been opened up at the Saxendrift Hill Complex ("SHC"). The recently commissioned SHC plant utilizes Bourevestnik X-ray technology in both the concentration and recovery areas.
All of these stones will be sold into the beneficiation joint venture with Steinmetz Diamonds at market value. Rockwell will also participate equally in the value uplift once these stones have been polished and sold.
The frequency of Rockwell's recoveries in the 20 to 100 carat category has improved with the commissioning of SHC and Niewejaarskraal as well as integrating the Saxendrift Extension into Saxendrift's mine plan. Implementation of diamond value management principles and fit for purpose technologies also contributed to the improvement.
Commenting on the recovery of these large, high valued stones James Campbell, CEO and President said:
"Recovery of four rough diamonds exceeding 100 carats within a three week period is a milestone in our objective to grow production in the MOR region where we have a significant inventory of high value in situ diamonds. It also attests to the quality of our recovery processes where the implementation of fit-for-purpose technology has improved our ability to recover large stones. This includes the Bulk X-ray technology which we pioneered in the full production environment at SHC as well as our strong skills at Saxendrift where efficiency initiatives in the pan plant are paying off."
"Our objective to increase alluvial production volumes in this area to 500,000m3 per month is aimed at improving the quarterly earnings visibility of the Company through the more regular production of large stones such as these. Importantly, these +100 carat stones were recovered from two new mining areas, namely the Saxendrift Extension (acquired with the purchase of the Jasper project in March 2012) and the Saxendrift Hill Extension, and show tangible progress with our strategy."
About Rockwell Diamonds:
Rockwell is engaged in the business of operating and developing alluvial diamond deposits, with a goal to become a mid-tier diamond production company. The Company has three existing operations, which it is progressively optimizing, two development projects and a pipeline of earlier stage properties with future development potential.
Rockwell also evaluates merger and acquisition opportunities which have the potential to expand its mineral resources and production profile and would provide accretive value to the Company.
No regulatory authority has approved or disapproved the information contained in this news release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. 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 uncertainties and costs related to exploration and development activities, such as those related to determining whether mineral resources exist on a property; uncertainties related to expected production rates, timing of production and cash and total costs of production and milling; uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development projects; operating and technical difficulties in connection with mining development activities; uncertainties related to the accuracy of our mineral resource estimates and our estimates of future production and future cash and total costs of production and diminishing quantities or grades if mineral resources; uncertainties related to unexpected judicial or regulatory procedures or changes in, and the effects of, the laws, regulations and government policies affecting our mining operations; changes in general economic conditions, the financial markets and the demand and market price for mineral commodities such and diesel fuel, steel, concrete, electricity, and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the US dollar, Canadian dollar and South African Rand; changes in accounting policies and methods that we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; environmental issues and liabilities associated with mining and processing; geopolitical uncertainty and political and economic instability in countries in which we operate; and labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate our mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt operation of our mines or development projects.
For further information on Rockwell, Investors should review Rockwell's home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources
This news release uses the terms "measured resources", "indicated resources" and "inferred resources". Northern Dynasty Minerals Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
SOURCE: Rockwell Diamonds Inc.
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For further information on Rockwell and its operations in South Africa, please contact
+27 (0)83 457 3724
+27 (0)83 307 7587