Strong Marine Production and Sales for the Quarter ended June 30, 2007


    CAPE TOWN, South Africa, Aug. 1 /CNW/ - Diamond Fields International Ltd.
(DFI:TSX) ("DFI" or the "Company") announces strong production and sales
results for the quarter ended June 30, 2007 from marine diamond mining joint
operations ("JO") with Bonaparte Diamond Mines NL ("Bonaparte").

    Key points:

      -  Total JO production for the June 2007 quarter of 20,269 gem diamonds
         weighing 8,279 carats at an average size of 0.43 carats/stone.

      -  Three JO diamond sales of 9,224 carats completed in the quarter
         generating total revenue of US$1,919,676 (70% (DFI): 30% (Bonaparte)
         revenue and operating costs split).

      -  Total JO sales to date of 10,567 carats sold for US$2,266,018 at an
         average value of US$214/carat.

      -  Amended JO agreement resulting in expansion of JO resource area to
         10.1 km2 and increase in Bonaparte's interest to a 35% share of
         agreed cost and revenues when mining is undertaken with DFI's vessel
         MV DF Discoverer in expanded area.

      -  Marine sampling program in expanded JO area planned for
         implementation in second half of 2007.

    Mining Activities

    The DFI/Bonaparte JO marine diamond mining operation off Luderitz,
Namibia continued throughout the quarter with strong results, and has now been
operating for a total of 5 months since commencement in late January 2007.
    JO diamond production of 8,279 carats for the June 2007 quarter
represents an increase of 78% over production achieved in the previous
quarter. During both April and May, successive monthly record productions were
achieved, driven by the full availability of the dual airlift mining system
which was established at the end of March 2007. Production for April reached
3,189 carats and in May reached 3,529 carats. In June the production declined
due to poor seasonal (winter) weather conditions and resultant technical
problems affecting operations. For part of this month only one airlift could
be operated. During the September 2007 quarter operational improvements are
again anticipated as a result of improving weather and the ongoing replacement
and repair of key pieces of equipment.
    JO mining results continue to meet expectations from the resource, and as
a result large stones have been regularly recovered with diamonds in excess of
2.0 carats occurring regularly. The largest diamond recovered to date, was a
9.2 carat diamond. Fancy colored diamonds are also recovered occasionally. The
diamonds recovered to date continue to be of approximately 95% gem quality.

    Diamond production is summarized in Table 1 below.

    Table 1   Diamond Production

    Production Period             Stones          Carats            Ave Size
    Pre JO                          1657             605                0.37
    JO                              8208            4038                0.49
    Total Q3 production
     (January to March 2007)       9,865           4,643                0.47
    Total production Q4- all
     JO (April to June 2007)      20,269           8,279                0.41
    Total production
    (January to June 2007)        30,134          12,922                0.43

    The total production from JO mining at June 30, 2007 stands at 28,477
diamonds weighing 12,318 carats with average stone size of 0.43 carats per
stone and representing an effective 5 months mining since commencement at end
January 2007. Mining to date continues to show that the mineralization and
economic grades extend in places beyond the resource boundaries defined by the
sampling data.
    Mining is presently taking place in the Diaz Prospect 1 JO mining area in
mining license ML111, under the terms of the formal mining agreement which was
announced on February 20, 2007. The agreement provides for a minimum of
6 months mining in the DP1 JO area, which has since been extended for up to
12 months by mutual agreement. The JO mining operations are being conducted by
DFI utilizing its vessel MV DF Discoverer on a 70% (DFI): 30% (Bonaparte)
shared revenue and agreed operating cost basis. Mining is currently in
progress in the 315,000m2 area within DP1 incorporating a 63,000 carat
Indicated Resource (National Instrument 43-101 compliant), identified in late
    Based on the success of the initial JO operations, discussions to extend
both the minimum mining term in the JO area, as well as expansion of the scope
of the JO have been concluded.
    The JO partners have now signed an amendment to the JO Mining Agreement
(announced July 16, 2007), whereby the original 1.6 km2 JO area in the Diaz
Reef Prospect of ML111 license offshore Luderitz, has been expanded to a total
prospective area of 10.8 km2. This area will be sampled by Bonaparte at its
cost, with the objective of substantially expanding the mining resources
available to the JO mining operations. In addition, Bonaparte's interest in
the expanded JO area has increased to 35%, where DFI is the mining operator
(i.e. gross revenue and agreed operating cost will be shared on the basis of
65% DFI, and 35% Bonaparte). The amendment to the agreement also requires
Bonaparte to fund an amount of not less than Namibian$5,000,000 directly on
resource development within the expanded JO area in ML111 over a period of
2 years from the effective date of this agreement.
    Sampling in the expanded JO area is expected to commence within the next
2-3 months, subject to availability of a suitable vessel. The delineation of
substantially larger JO mining resources in 2007 and 2008 is expected to
provide a basis for increased production, and may also allow consideration for
introducing a second mining vessel, at an appropriate stage.


    During the quarter ended June 30, 2007, three sales of JO production were
completed in Antwerp, Belgium via DFI's existing sales agreement with Diamond
Tenders (Belgium) NV. The three sales comprised a total of 9,224 carats
(increase of 258% over previous quarter) realizing US$1,919,676 (250% increase
over previous quarter). To date, a total of four JO diamond production sales
have been completed at an average value per carat sold of US$214. The average
value per carat realized for the June quarter was US$208. Sales results are
summarized in Table 2 below.

    Table 2:   Total Diamond Sales

    Period/Date of sale         Carats              Total      Average value
                                                      US$             US$/ct
    Pre JO sales                  2,221           420,729                189
    JO sales                      1,343           346,342                258
    Total Q3 sales
    (January to March 2007)       3,564           767,071                215
    JO sale, April 07             2,030           484,692                239
    JO sale, May 07               3,344           661,615                198
    JO sale, June 07              3,850           773,369                201
    Total Q4 sales - all JO
     (April to June 2007)         9,224         1,919,676                208
    Total sales (January to
     June 2007)                  12,788         2,686,747                210

    The above represents sales on production up to May 29, 2007. Overall the
sales price remains above the US$200 mark, indicating the strong demand for
the high gem quality production.

    Sales this quarter included the following high value diamonds:

    Diamond Size (Carats)            Sales Price (US$)             US$/Carat
    7.72                             24,018                        3,111
    6.16                             13,668                        2,219
    5.38                             13,057                        2,426

    Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the Company's
President and CEO, who is a Fellow of the South African Institute of Mining
and Metallurgy (SAIMM) and is also a registered geological scientist with the
South African Council for Natural Scientific Professions (SACNASP) and is thus
a Qualified Person in terms of National Instrument 43-101, has compiled and
reviewed the scientific and technical information contained in this News

    DATED August 1, 2007.


    "Roger J. Daniel"

    Roger J. Daniel, President and CEO

    Forward-Looking Statements:

    Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in Diamond Fields' periodic filings with Canadian Securities
Regulators. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking
statement can be guaranteed and actual future results may vary materially.
Diamond Fields does not assume the obligation to update any forward-looking

For further information:

For further information: Roger Daniel at +27 21 425 1990, Website:

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