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DIAMOND FIELDS INTERNATIONAL LTD
9th Floor, 200 Burrard Street
Vancouver, BC
Canada V6C 3L6
Tel : (604) 682-2113
Fax : (604) 682-6728
TRANS HEX GROUP
405 Voortrekker Road
Parow, 7499 Cape Town
Republic of South Africa
Tel : (27) (21) 939 1105
Fax : (27) (21) 939 0711
MARCH 6, 2001
Diamond Fields International Ltd. (DFI-TSE) and Trans Hex Group Limited (TSX -
JSE/NSX) are pleased to announce that they have entered into a joint venture
agreement to mine diamonds from two areas within Diamond Fields' Mining License
111, offshore Luderitz, Namibia. This agreement will enable Diamond Fields to
become a marine diamond producer before the end of the year without incurring
financial debt or shareholder dilution and significantly enhances Trans Hex's
mid-water marine opportunities.
Diamond Fields, through its wholly-owned Namibian subsidiary, will make
available to the Joint Venture the exclusive rights to mine two areas of its
offshore Namibian Mining License 111, such areas comprising the Marshall Fork
feature and the Diaz 12 zone of the Diaz Reef feature (the "Joint Venture
Area"). This area represents less than 0.6% of the total area of ML 111. The
initial term of the Joint Venture is 7 years, renewable annually thereafter by
mutual agreement. Trans Hex, through a wholly-owned Namibian subsidiary, will
be the operator of the Joint Venture and will contribute two modern
airlift-type diamond-mining vessels, with enhanced visualization technology and
associated equipment, processing plants and offshore diamond mining expertise.
The first Trans Hex supplied vessel is to commence operations no later than
eight months following receipt of all applicable approvals for the Joint
Venture from the Government of Namibia. The second vessel will be deployed no
later than October 31st, 2002.
Diamond Fields will be responsible for the marketing of diamond production from
the Joint Venture. However, Diamond Fields will develop its marketing
strategies and procedures in consultation with Trans Hex.
Francis J. Waldron, Diamond Fields' CEO states, "This Joint Venture agreement
positions the Company to move quickly into the operating phase and by the end
of the year, we expect to receive positive cash flows. These will further
strengthen the company's sound financial position and allow us to continue
defining and expanding our resources in the Company's Namibian concessions."
"Trans Hex is an excellent choice for a joint venture partner as it has a
strong balance sheet and has proven itself as a successful diamond mining
operator. We were particularly attracted to Trans Hex's balance between
technology, cost efficiencies and profitability. We look forward to working
with Trans Hex."
In addition to it's core on-land diamond mining activities, Trans Hex has been
involved in marine mining for more than 20 years - mainly in the shallow-water
(<30m) zones. A year ago, the appointment of the experienced Andre Louw to
head up the marine division signalled a renewed commitment to expanding
offshore operations. Andre, previously as MD of Ocean Diamond Mining, has a
long and profitable marine mining track record in Namibian waters.
Trans Hex acquired a number of mid-water marine concessions last year as part
of its merger with Benco, and plans to develop these into mining areas are
underway.
The joint venture opportunity with DFI has accelerated Trans Hex's mid-water
plans because of the highly attractive geological features and diamond
mineralization surveyed, sampled and trial-mined by DFI.
Peter Danchin, Trans Hex managing director: operations explains: "The Marshall
Fork feature is a delineated ore body, the lateral continuation of which
previously produced outstanding results from mining activities. We are
thrilled to commence our mid-water operations in this well-known zone."
Diamond Fields and Trans Hex extend their sincere appreciation to the Minister
of Mines and Energy, Honourable Jesaya Nyamu and his staff for their continued
support.
The Joint Venture Agreement is subject to all regulatory approvals, including
all applicable approvals from the Government of Namibia.
ON BEHALF OF THE BOARD ON BEHALF OF THE BOARD
OF DIRECTORS OF OF DIRECTORS OF
DIAMOND FIELDS INTERNATIONAL LTD. TRANS HEX
Francis J. Waldron Peter D Danchin
Chairman and Chief Executive Officer Managing Director : Operations
For further information contact: (604) 682-2113 (27) (21) 939 1105
Investor Relations: Don Halliday (604) 608-0826 Cullum Johnston
Website - www.diamondfields.com Website-www.transhex.co.za
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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