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Diamond Sale, Marine Mining and Exploration Update

 

SYMBOL: DFI



    CAPE TOWN, Sept. 6 /PRNewswire-FirstCall/ - Diamond Fields
 International Ltd. (DFI:TSX) ("DFI" or the "Company") announces latest
 sales results and production from marine diamond mining joint operations
 ("JO") with Bonaparte Diamond Mines NL ("Bonaparte"), and is also pleased
 to announce a new JO resource sampling programme.
     Diamond sales and production update
     Diamond production from June to mid August 2007 totaling 3,727.86
 carats was sold in late August and realized a total of US$872,813 at an
 average price of US$234.13 per carat. This sale included a 2.45 carat pink
 diamond that sold for US$41,089 (US$16,771 per carat). Sales of production
 under the JO up to 13 August 2007 comprises a total of 14,294 carats
 realizing US$3,138,832 at an average price of US$219.58/ct.
     In terms of the JO agreement Bonaparte has the right to 30% of the
 proceeds from the sale of diamonds and is obligated to pay 30% of agreed
 operating and sales costs.
     The unusually severe winter weather conditions and resultant technical
 problems that affected operations and reduced production in June continued
 through July and August with production for those months being 1,434cts and
 874 carats respectively. Average stone size and diamond quality throughout
 this period remained good with average size maintaining 0.43 carats/stone.
     Available mining time and production was affected by a combination of
 exceptional factors including direct stoppages as a result of weather
 conditions, equipment damage and breakages (mainly mining hoses and mining
 wires) as a secondary result of the severe weather and dragging of anchors
 (again due to harsh weather) resulting in the vessel being unable to
 maintain its desired position. Replacement of the damaged mining hoses was
 required sooner than anticipated and time was lost while the hoses were
 sourced and delivered from Ireland. The hose problem resulted in frequent
 stoppages to the port airlift as available hoses were applied mainly to
 keeping the starboard airlift operating.
     Production is expected to again increase in the December 2007 quarter
 with improving weather conditions and return to full operational capacity
 as a result of the replacement and repair of certain equipment on the
 mining vessel.
     Mining in the JO area has continued since late January 2007. To the end
 of August 2007, JO mining in ML111 DP1 has produced a total of 33,903
 diamonds for 14,627 carats at an average size of 0.43carats/stone.
     Joint Operations Marine Sampling
     Bonaparte has contracted the purpose built marine diamond sampling
 vessel MV Douglas Bay from DeBeers Marine ("DBM") for a second sampling
 programme in ML111 in terms of the amended JO agreement details of which
 were announced in a news release dated July 16, 2007. The programme is
 planned to start in late October 2007 and will run for a period of 35-50
 days depending on results. This vessel was used successfully in 2006 to
 define the initial JO mining resource of 63,000 carats.
     Sampling operations will be focused on substantially increasing the
 mining resource adjacent to current mining areas within selected areas of
 the recently expanded ML111 JO area. Previous sampling by DFI has confirmed
 several areas of diamond concentration within the expanded area. The
 initial sampling will concentrate on the development of resource in these
 areas.
     Roger Daniel, DFI's President and CEO commented: "We are delighted that
 our JO partner Bonaparte is embarking on a second round of resource
 development sampling. Our expectation for the expanded JO area in ML111 is
 that it will provide the platform for defining substantially larger diamond
 mining resources to allow us to progressively increase diamond production
 from 2008 onwards. The objective is to delineate an additional resource of
 some 200,000 - 400,000 carats in the expanded area in 2007/2008 to support
 JO mining for several years and allow serious consideration to be given for
 the introduction of a second mining vessel".
     Roger J. Daniel, B.Sc. (Hons) Geology, London, Pr.Sci.Nat., the
 Company's President and CEO, who is a Fellow of the South African Institute
 of Mining and Metallurgy (SAIMM), is also a registered geological scientist
 with the South African Council for Natural Scientific Professions
 (SACNASP), and is thus a Qualified Person in terms of National Instrument
 43-101, has compiled and reviewed the scientific and technical information
 contained in this News Release.
     DATED September 6, 2007.
 
     DIAMOND FIELDS INTERNATIONAL LTD.
 
     "Roger J. Daniel"
 
     Roger J. Daniel, President and CEO
     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.
     CONTACT: Roger Daniel, +27 21 425 1990, Website: www.diamondfields.com
 
 

SOURCE Diamond Fields International Ltd.