Diamond Fields International Ltd (DFI) has finalised an agreement with International Mining and Dredging Holdings (Pty) Limited (IMDH) to recommence its mining programme in its Namibian, offshore, diamond concessions.

In a statement issued yesterday, DFI sais that an initial mining programme on its ML 111 licence is scheduled to commence in 2018 and will extend over a sea floor area of approximately 55 hectares. The programme will use the state-of-the-art Ya Toivo mining vessel which is capable of highly efficient and selective mining on the sea floor.

The Company said that though diamonds recovered from the Company's ML 111 in Namibia are typically of the highest gem quality, earlier bulk sampling had yielded an unexpected high frequency of large, high value stones, and exceeded expectations.

DFI said that an agreement had also been finalised with regard to the 2016 bulk sampling programme. While all costs associated with it were paid for by IMDH, DFI will now be paid US$ 670,000 within 30 days.

During the current phase of the initial mining programme, and dependent on monthly production levels, DFI’s share of net proceeds (after costs) shall be not less than five per cent. Mining costs and other parameters during the initial mining programme will be subsequently reviewed to find a balance for sharing exploration and mining costs going forward, particularly regarding resource and reserve development, DFI stated.

Sybrand Van Der Spuy, CEO of DFI said : "We are extremely excited at the prospect of being back in production in the very near future. Our product is recognized throughout the world for its exceptional quality, being 98% gem and we look forward to bringing this niche product back to the market again. This program will provide our Company with the opportunity to generate significant cash-flow in short order."

Pic caption: DFI’s Discoverer at work
Courtesy: Diamonf Fields International