Diamond Fields announces decision to proceed with Sea Diamonds Project
VANCOUVER, Oct. 10 /CNW/ - Diamond Fields International Ltd., (DFI-TSE)
announces that the Board of Directors have formalized the decision to proceed,
subject to financing, with the development of the Company's Sea Diamonds
Project offshore Luderitz, Namibia. Diamond Fields received the positive
feasibility study earlier this month. Highlights of the study, as previously
reported, on September 12, 2000 include a base case internal rate of return
(IRR) of 54% with a low capital costs of US$28.1 million and low annual
operating costs of US$13.5 million, before royalties, marketing and taxes. If
carats from a suspected sampling bias are included in the mine plan, then the
IRR increases to 133% with no change in the capital and operating costs.
Management of Diamond Fields has been in discussions with several
international financial institutions regarding financing for the Sea Diamonds
Project. We believe that, based on the high profit potential of the project
combined with low initial capital costs, financing of the project could be
completed later this year.
Diamond Fields is an international diamond exploration and mining company
and continues to pursue diamond business opportunities worldwide. The Company
is currently focusing on the development of its Sea Diamonds Project in
Namibia.
Daniel D. Johnson
President and Director
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-
looking statements. All statements, other than statements of historical fact,
included herein, including, without limitation, statements regarding future
production and expansion plans of Diamond Fields International Ltd. (DFI), are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from DFI's expectations are disclosed under the heading "Risk
Factors", and elsewhere, in DFI's documents filed from time to time with the
Toronto Stock Exchange and other regulatory authorities. Forward-looking
statements are based on the estimates and opinions of management on the date
the statements are made, and DFI does not undertake any obligation to update
forward-looking statements should conditions, or management's estimates or
opinions, change.
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For further information: (604) 682-2113; Investor Relations: Don
Halliday, (604) 608-0826; Website : www.diamondfields.com
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