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Re: News Releases - Wednesday, September 17, 2008
Diamond Fields' Operations, Exploration and Share Capital
Consolidation Update
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Vancouver, B.C., September 17, 2008: Diamond Fields International Ltd.
(DFI:TSX) ("DFI" or the "Company") is pleased to issue this update on
its operations and exploration activities and share capital
consolidation.
Namibia Marine Operations
Diamond Fields is pleased to announce the successful completion of a
new geophysical survey undertaken by Underwater Surveys Ltd., a
NI43-101 compliant company over its Namibian marine concessions. The
survey, comprising 555 line kilometres of multi-beam, high resolution
seismic and bathymetry data, was commissioned over the Marshall Forks
region of the ML111, and the Company's shallow water concession, ML32.
Northwest of the Marshall Forks region the survey confirmed the
presence of a defined channel structure approximately 30 metres in
width, striking southwards over a traceable length in excess of 1,200
metres. The structure lies within the Marshall Forks resource domain
which has historically yielded elevated diamond recoveries, and to
which the structure may be related. The survey also covered Conical Bay
located approximately 500 metres to the east of Marshall Forks, and
which the Company regards as having good potential for developing
high-grade lunate strand deposits. Audit surveys of Marshall Forks were
also completed to accurately define remaining resources. Survey data
from Boat Bay Rocks and Boat Bay North in ML32 were also collated to
develop the Company's mid to shallow water assets. The Company intends
to pursue these new targets and is implementing a trenching program and
taking other steps to define and develop the new economic resources.
The Company renewal application for its ML32 license has been filed and
is pending.
The Company's ship, the MV DF Discoverer completes its 5 year dry dock
survey this week under budget and in a record time of 13 days. The
refurbished MV DF Discoverer will undergo a short post-drydock
shakedown after which it immediately begins targeted cross-trench
sampling of new areas highlighted by the recent survey.
Diamond recovery in June 2008 was 7,792 stones totaling 2,402.29
carats, the Company's fourth highest monthly production since January
2007. Once again the ship's availability in June was high, exceeding
eighty percent (80%). However, recoveries in July and August was low
due to mechanical problems, the failure of a vendor to timely deliver
fuel and a short August in order to prepare the vessel for its 5 year
dry dock survey. Production in July and August 2008 totaled 341.15
carats and 535 carats, respectively. The marine managers used the down
time to conduct additional maintenance and repairs which resulted in
reduced time and costs in dry dock.
The most recent diamond sale resulted in another all-time sale price.
The Company sold 2,541.20 carats at an average per-carat price of
$263.44 USD.
The Company continues to develop its marine concessions through
surveying and sampling, mining shallow water areas through arrangements
with local miners, and negotiating with third parties for joint venture
development of areas within the Company's licenses.
Madagascar Nickel Project
ALS Chemex, a NI43-101 compliant laboratory has completed analysis of
5,144 channel samples collated from a 30 metre pitting grid over the
Company's 100% owned Ni-laterite deposit Valozoro in Madagascar. Values
of up to 7.94% nickel have been recovered from the sampling program
executed by Rawtech, a NI43-101 compliant geological consulting firm.
Preliminary data suggest that the historical resource estimate of
65,000 tonnes of insitu nickel may have been conservative. An
independent resource estimation is currently being undertaken by
Rawtech on behalf of the Company. The results of data analysis will be
completed and released shortly. Based on a preliminary analysis, the
Board has approved management's recommendation to proceed to the next
step in developing the property.
Zambia Zinc and Copper
Regional exploration of the Company's joint venture with Lion Fields
(Zambia) Ltd. on the PLLS 311 exploration license in Northern Zambia
adjacent to the Kipushi copper zinc mine has been completed. From a
review of published core drilling data undertaken by Gecamines, the
Company has been able to establish the continuation of the Kipushi
orebody in to the Republic of Zambia over a minimum strike distance of
180 metres traversing the international border at a depth of
approximately 1,000 metres below ground level. Two other areas
including the Katwishi anomaly, a defined Cu-Zn target approximately
1,200 metres to the northwest of Kipushi, and a zone of cupriferous
gossans developed near the village of Yowela in the centre of the
license are currently being further evaluated by the Company. The
Company's renewal application for PLLS 311 has been filed and is
pending.
Liberia Gold Project
The Company is pleased to announce the fulfillment of its obligations
under the terms of a joint venture agreement with Ducor Inc., a
Liberian registered company, whereby Diamond Fields has now earned a
seventy percent (70%) stake in three exploration leases in the Grand
Cape and Grand Geddah counties in the north of Liberia. The Company
undertook an exploration program for gold in the 2008 dry season within
these permits. A group 1,500 soil samples are currently being analyzed
by Alex Stewart Assayers in the UK, a NI43-101 compliant laboratory.
Results are expected shortly. The Company is preparing an aggressive
reverse circulation drilling program to drill its Bartejaam and Henry
Town anomalies within the Grand Geddah and Henry Town license
respectively, which is expected to commence in late October 2008. The
results of data analysis will be completed and released shortly. Based
on a preliminary analysis, the Board has approved management's
recommendation to proceed to the next step in developing the property.
Mr. N. Kruger B.Sc. (Hons) Geology, UOFS , Pri. Sci. Nat., a consultant
to the Company, is a registered geological scientist with the South
African Council for Natural Scientific Professions (SACNASP) and is
thus a Qualified Person under NI 43-101. Mr. Kruger has compiled and
reviewed the scientific and technical information contained in this
News Release.
Additional Opportunities and Projects
The Company is in discussions with third parties to develop certain of
its existing properties as well as the acquisition and development of
new properties. Those discussions are at various stages and updates
shall be announced as developments warrant.
Consolidation of Share Capital
At the Annual and Special Meeting of Diamond Fields held on December 3,
2007, shareholders of DFI voted in favour of a resolution authorizing
the Board of Directors of the Company to implement, by September 30,
2008, a consolidation of DFI's share capital at an exchange ratio of
one (1) new DFI Share for each five (5) old DFI Shares. The Toronto
Stock Exchange has confirmed that the common shares of DFI will
commence trading on a consolidated basis at the opening on September
25, 2008. A Letter of Transmittal will be sent to shareholders with
instructions on how to exchange old share certificate(s) for new share
certificate(s) of DFI. There will be no change of name with this
consolidation.
The Board of Directors believes that this consolidation is in the best
interest of shareholders, and refers to the 2007 Information Circular
that was SEDAR filed on October 29, 2007 which sets out particular
reasons.
Follow this link to view the photo:
Refurbished Diamond Fields' MV DF Discoverer during dry dock
refurbishment.
http://www.diamondfields.com/s/NewsReleases.asp?ReportID=319421
DIAMOND FIELDS INTERNATIONAL LTD.
"Wayne Malouf"
Wayne Malouf, Chief Executive Officer
For further information, contact Wayne Malouf at + 1 604 685 9911
Website: www.diamondfields.com
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
statement.
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Copyright (c) 2008 DIAMOND FIELDS INTERNATIONAL LTD. (DFI) All rights
reserved. For more information visit our website at
http://www.diamondfields.com/ or send mailto:enquire@diamondfields.com
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