Wrap Text
RDI - Rockwell Diamonds Incorporated - Production update for first quarter of
fiscal 2012 ending May 31, 2012
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 TSXV: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL PROVIDES PRODUCTION UPDATE FOR FIRST QUARTER OF FISCAL 2012 ENDING
MAY 31, 2012
June 25, 2012 Vancouver, BC - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces that volumes of gravel
processed in the first quarter increased 56% year on year, with a 74%
improvement in carat production from the three operational mines over the same
period to 6,116 carats. Overall volumes processed continued to track closer to
the Company`s internal targets while budgeted carat recoveries were exceeded
as the bulk x-ray proof of concept plant introduced earlier in the year
contributed 1,118 carats in the last six weeks of the quarter.
First quarter operational update:
The volume and carat production for the Company`s operational mines for the
quarter ended May 31, 2012:
Volumes of gravel Carats Produced
processed (m3)
Q1 2012 Q1 2013 % change Q1 Q1 % change
2012 2013
Saxendrift 325,076 453,204 39% 1693 2,126 26%
Saxendrift Bulk X-- - - - 1,118 100%
ray
Tirisano - 123,048 100% - 1,222 100%
Klipdam 194,192 232,216 20% 1,832 2,768 51%
Total 519,268 808,468 56% 3,525 6,116 105%
Saxendrift Complex:
- Saxendrift achieved a 39% year-on-year increase in volumes processed to
453,204 m3 for the first quarter, in line with its targets, while carats
produced increased 26% to 2,126 carats.
- The bulk x-ray plant was commissioned in April 2012 below budget and on
schedule. A total of 1,118 carats were extracted from recovery tailings during
the first six weeks of operation of this proof of concept project with the
largest stone recovered weighing 74 carats. The next phase of testing is
progressing with the processing of additional recovery tailings.
- The in field screen, commissioned in November 2011, increased plant
throughput during the first quarter. In addition, it went some way to mitigate
the impact of increased sand content of the ore bodies being mined.
- Improving production from Rockwell`s properties that are located adjacent to
the Saxendrift Mine is now the Company`s focus. This includes the additional
resources acquired as part of the Jasper Project purchase, which became
unconditional at the end of May 2012. Plans are also in progress to evaluate
the potential of extending mining operations to other parts of the Saxendrift
Mine property with the objective of extending the life of this operational
footprint.
- The pre feasibility study for Wouterspan, scheduled for completion by the
end of 2012 has commenced and is scheduled for completion by year end.
Tirisano:
- Ramp up in production continues, with plant throughput volumes increasing by
30% to 123,048 m3 in the first quarter, from 94,643 m3 in the fourth quarter
of fiscal 2012.
- Carat production more than doubled in the three months to May 31, 2012,
yielding 1,222 carats compared to 557 carats in the previous three-month
period. This was as a result of grade increases to 0.99 carats/100 m3, from
0.59 carats/100 m3 in the quarter ended February 29, 2012.
- Construction of the wet front end facility which has the capability to
process gravels with high clay content was completed on schedule at the end of
May 2012 and is expected to provide additional flexibility in the mine plan
that was previously lacking.
- Maintenance and rationalization of the earthmoving fleet has been a key
focus this past quarter.
Klipdam:
- A year on year increase of 20% in plant throughput to 232,216 m3 was due to
the conversion to continuous operations, installing a new barrel screen and
the removal of five conveyor belts in the front end of the production plant.
- Carat production increased 51% with improved grades as a result of the focus
on processing the Rooikoppie gravels. The value per carat was in line with the
previous quarter due to current world markets.
- The appointment of a Mine Manager and Mining Manager has significantly
improved the overall operation of the mine.
Commenting on Rockwell`s progress in relation to its focus on Diamond Value
Management, James Campbell, CEO stated that: "In 2011, our executive
management and board put in place two simultaneous strategies for enhancing
shareholder value, namely to execute on our plans to optimize production at
each of our operational mines and to rebuild the mine life profile of the
Company`s assets. The results to date are showing the first positive impacts
of these strategies."
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.
Johannesburg
25 June 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 25/06/2012 14:30:01 Supplied by www.sharenet.co.za
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