Wrap Text
RDI - Rockwell Diamonds Incorporated - Rockwell provides operational update
and feedback from third quarter diamond sales
ROCKWELL DIAMONDS INCORPORATED
(A company incorporated in accordance with the laws of British Columbia,
Canada)
(Incorporation number BCO354545)
(Formerly Rockwell Ventures Inc.)
(South African registration number: 2007/031582/10)
Share code on the JSE Limited: RDI ISIN: CA77434W2022
Share code on the TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell" or the "Company")
Rockwell provides operational update and feedback from third quarter diamond
sales
December 15, 2011 Vancouver, BC - Rockwell Diamonds Inc. provides an update on
operational progress and the results of its diamonds sales for the third
quarter of fiscal 2012.
"We continue to make progress with all the projects that have been set in
motion in the last six months. I can confirm that we are now seeing evidence
of a culture which reflects our diamond value management strategy being
inculcated in the day-to-day operations," explains James Campbell, CEO,
Rockwell. "In addition to progressing with projects which will enable our
mines to produce according to their plans, we have also continued to bolster
our technical teams to ensure that we fully benefit from these investments and
become more effective at addressing operational issues on the mines. Also,
following the agreement reached with the National Union of Mineworkers in
November 2011, we have submitted our application to convert the Northern Cape
mines to continuous operations."
Operational update:
Saxendrift:
- Recoveries at the mine were above forecasts for the quarter; one stone
exceeding 100 carats was recovered.
- The Dabmar in field screen has been fully commissioned and has been in
production at name plate capacity since the end of November 2011. The
anticipated benefits include its improved ability to process various ore
types that can efficiently be processed through the screen.
- The PC2000 excavator was relocated from Klipdam to Saxendrift where it is
operating at a higher utlization. Its capacity matches the 100 ton trucks
which transport the gravel from the mining faces to the in field screen.
- Implementation of the bulk X-ray project is on schedule. The X-ray
machine will be dispatched from Russia by the end December to be set-up
in Johannesburg and delivered to the mine by the end of January 2012. It
is expected to be commissioned and incorporated into the dedicated bulk
sorting plant to commence testing and performance quantification on
various gravels during April 2012.
Tirisano:
- Following the construction and commissioning of the mine, the first
diamonds were produced and have been sold.
- The new recovery plant and front-end extension were commissioned on
schedule during the quarter.
- Production started in November 2011 and although diamond grades were
disappointing, the diamond price achieved was above expectation chiefly
as a result of higher than expected recoveries of +10 carat stones. Good
progress has been made to resolve the historical issues of clay balling
in the scrubber and abundance of Manganese in the mine feed which had
been adversely affecting the concentration and recovery process.
- A new plant manager, with vast diamond winning experience and a full
time, dedicated mining manager have been engaged for the mine.
- Together with increased supervision and consistent operation of the
plant, the mine is well placed to achieve planned production.
- The Company`s technical team has been tasked with planning and
implementing a front end appropriate for run of mine preparation before
the 2012 rainy season commences.
Klipdam:
- A new mine manager started in November 2011 and has already made good
progress with priorities to increase truck availability, achieve
consistent plant throughput and reduce spillages. As a result, the
budgeted recoveries were achieved in November 2011.
- An infield screen has been erected at the centre of mining activities
which has resulted in significant diesel cost savings.
- Early in December 2011, the mining plan migrated to the in situ alluvial
Rooikoppie gravel which is expected to yield higher quality diamonds.
Wouterspan:
- The Company has been successful in consolidating its six mining and
prospecting rights into a single mining right spanning 7,409 hectares.
This milestone will streamline the administrative requirements of the
authorities as well as any future operations. It also provides the
Company with significant upside to extend the 37.7 million m3 inferred
and 5.0 million m3 indicated resources(1) estimated to be contained in
only 12% of the total consolidated land package.
Third quarter diamond sales
Total proceeds of $6.0 million were generated from the sale of 5,377 carats.
The average price per carat for the quarter was $1,109 which was in line with
expectations after having brought Tirisano on stream.
Operation Carats US $ Revenue US $/ct
Klipdam 1,990 1,356,388 681
Saxendrift 1,761 3,332,902 1,892
Tirisano 1,625 1,272,214 783
Total 5,377 5,961,504 1,109
"The volume sold increased by 67% to 5,377 carats, compared to the second
quarter of fiscal 2012. This significant increase is partly due to the sale of
the first production from Tirisano at an average price of $783 per carat. The
Tirisano price per carat greatly exceeds management estimates", stated
Campbell. "We are well positioned in this improving diamond market. Our
mines are starting to produce to target and our inventory is 1,800 carats at
the end of the third quarter. This inventory was accumulated so as to satisfy
higher demand during the peak sales period in the first quarter of the 2012
calendar year."
(1) Indicated and Inferred Mineral Resources at a grade 0.70 carats per 100
cubic metres to February 2011. Further details are available in Rockwell`s
news release dated May 31 2011
For further information on Rockwell and its operations in South Africa, please
contact
James Campbell CEO +27 (0)83 457 3724
Stephanie Leclercq
Investor Relations +27 (0)83 307 7587
About Rockwell Diamonds:
Rockwell is engaged in the business of operating and developing alluvial
diamond deposits, with a goal to become a mid-tier diamond production company.
The Company has three existing operations, which it is progressively
optimizing, two development projects and a pipeline of earlier stage
properties with future development potential.
Rockwell also evaluates merger and acquisition opportunities which have the
potential to expand its mineral resources and production profile and would
provide accretive value to the Company.
No regulatory authority has approved or disapproved the information contained
in this news release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements.
Factors that could cause actual results to differ materially from those in
forward-looking statements include uncertainties and costs related to
exploration and development activities, such as those related to determining
whether mineral resources exist on a property; uncertainties related to
expected production rates, timing of production and cash and total costs of
production and milling; uncertainties related to the ability to obtain
necessary licenses, permits, electricity, surface rights and title for
development projects; operating and technical difficulties in connection with
mining development activities; uncertainties related to the accuracy of our
mineral resource estimates and our estimates of future production and future
cash and total costs of production and diminishing quantities or grades if
mineral resources; uncertainties related to unexpected judicial or regulatory
procedures or changes in, and the effects of, the laws, regulations and
government policies affecting our mining operations; changes in general
economic conditions, the financial markets and the demand and market price for
mineral commodities such and diesel fuel, steel, concrete, electricity, and
other forms of energy, mining equipment, and fluctuations in exchange rates,
particularly with respect to the value of the US dollar, Canadian dollar and
South African Rand; changes in accounting policies and methods that we use to
report our financial condition, including uncertainties associated with
critical accounting assumptions and estimates; environmental issues and
liabilities associated with mining and processing; geopolitical uncertainty
and political and economic instability in countries in which we operate; and
labour strikes, work stoppages, or other interruptions to, or difficulties in,
the employment of labour in markets in which we operate our mines, or
environmental hazards, industrial accidents or other events or occurrences,
including third party interference that interrupt operation of our mines or
development projects.
For further information on Rockwell, Investors should review Rockwell`s annual
Form 20-F filing with the United States Securities and Exchange Commission
www.sec.com and the Company`s home jurisdiction filings that are available at
www.sedar.com.
Canada
15 December 2011
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 15/12/2011 15:45:01 Supplied by www.sharenet.co.za
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