Diamond Fields on track for production renewal (September 09, 2002)

Having bought its own vessel, Diamond Fields International (DFI-T) is preparing to renew marine diamond production off the coast of Namibia.

The junior’s main concession covers more than 70 km of coastal waters between Hottentot Point to the north and Diaz Point to the south, centred at Luderitz. Within that area are the diamondiferous Marshall Fork and Diaz geological features.

Through a joint venture with Trans Hex Group of South Africa, Diamond Fields had mined Marshall Fork for just over a year. The partnership ended in July because the two could not agree on the mining rates that were to have been achieved (T.N.M., July 22/02).

Since then, Diamond Fields has raised US$15 million in debt-financing with Overseas Private Investment, an agency of the U.S. government. Some of the proceeds were used to fund the recent purchase, and still more will be used to finance the ship’s conversion to an airlift mining vessel.

Trial runs are to begin in mid-2003.

In 2000, engineering firm MRDI, a division of AMEC E&C Services, pegged Marshall Fork’s indicated resource at 1.4 million cubic metres grading 0.3 carat per cubic metre. The resource is spread over 865,000 sq. metres and excludes inferred material of 540,000 cubic metres at 0.27 carat.

Indicated resources at the Diaz Reef feature, to the south, stand at 3.6 million cubic metres averaging 0.13 carat, spread over 2.13 million sq. metres. An inferred resource adds 776,000 carats to the overall deposit.

The resource calculations are based on sampling programs carried out by BHP and De Beers Marine. Each estimate assumes a cutoff grade of 0.15 carat per sq. metre, a diamond price of US$175 per carat, and overburden.

Meanwhile, Trans Hex has returned the Mv Ivan Prinsep airlift vessel to sea. The 996-tonne vessel, which had been assigned to the joint venture, is performing sampling for De Beers Marine.