Diamond Fields sells marine diamonds

Vancouver — A parcel of Namibian diamonds recovered by the first marine-mining vessel owned and operated by Diamond Fields International (DFI-T) has generated proceeds in line with expectations for fiscal 2005.

The company recently sold 1,296 carats of rough diamonds produced by its recently commissioned vessel, mv DF Discoverer, during initial operations from early June through June 26.

The diamonds sold for an average price of US$205 per carat, consistent with the average price received so far in fiscal 2005, but well above the average of US$146 per carat received in fiscal 2004.

The rough diamonds recovered by the company’s own vessel were sold as part of a larger parcel of 1,356 carats that fetched proceeds of US$275,268. The small quantity of previously recovered stones sold for an average of US$165 per carat, whereas the “company-recovered” stones sold for an average of US$203 per carat.

Before acquiring its own vessel, Diamond Fields used contract vessels to extract diamonds from its marine concessions off the coast of Namibia, in southern Africa.

In addition to the diamond concessions, Diamond Fields International owns a grassroots nickel discovery on the southeastern coast of Greenland. The company recently granted Inco (N-T) rights to earn a 65% interest in the Ammassalik property by spending US$3 million by the end of 2008.

Before the option was granted, Diamond Fields explored the property for two years and discovered nickel showings over a widespread area.