Namibia - Jean-Raymond Boulle Corporations, DFI

Between 2001 and 2004 mining operations on DFI's marine diamond concessions were conducted on an irregular basis under various joint venture and contracting arrangements. In late 2004 DFI acquired its own twin airlift mining vessel, mv DF Discoverer, which began mining on the licence areas in mid 2005. Overall mining results to date:

• Independent estimate (MRDI in feasibility study completed in 2000, and SRK in 2006) of 1.1 million carats resource.

• 158,200 carats recovered to date (Sep 30, 2007) - 95% gem quality.

• Diamond Sales since June 2004 (to Sep 30, 2007) of S$12.4M with average price US$203 per carat.

• Special Stones: gem quality 17.42 ct stone; rare 5.26 carat light blue diamond sold for >US$50,000 (US$10,457 per carat), 2.45 carat pink gem sold for US$16,771 per carat).

 

Following successful exploration in late 2006 under a joint operations ("JO") agreement with Bonaparte Diamond Mines NL ("Bonaparte"), which resulted in an independently estimated Indicated resource of 63,000 carats covering 315,000m2 of ML111, mining agreements were concluded between DFI and Bonaparte and production has continued in these resource areas since January 2007.

Key points in relation to Bonaparte joint operations:

• Indicated Resource (SRK) of 63,000 carats.

• Total JO production of 16,245 cts at average size of 0.43 cts/stone (to end September 2007).

• Sales of JO diamonds produced up to September 18, 2007 total 15,566 cts realising revenue of $7.287 million.

• Mining progressing beyond originally estimated resource blocks.

• Operating cost and revenue split on 70% (DFI) : 30% (Bonaparte) basis in initial area.

• Scope of joint operations expanded in July 2007. The effective joint operations area was increased to 10.8 km2 with Bonaparte committing to resource development expenditure of approximately $0.75 million before July 2009 to earn an increased share (operating cost and revenue share 65% DFI : 35% Bonaparte) of mining from indicated resource established in the new area.

• Resource development sampling in the expanded area commenced in late October 2007 and is planned to last for between 35 and 50 days depending on results.

 

DFI's combined license areas cover 719 km2 and carry important additional exploration potential to significantly increase the Company's resource base.

All of the company's diamond production is sold by open tender in Antwerp under an exclusive marketing agreement with Diamond tenders (Belgium) NV.

Source: http://www.diamondfields.com/s/Namibia.asp?reportID=70325

Date: 23rd September 2009