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production update for second quarter of fiscal 2013 ending August 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 TSX: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
Rockwell provides production update for second quarter of fiscal 2013
ending August 31, 2012
September 12, 2012 Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell"
or the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) posts improved
year-on-year diamond production for the second quarter (+14%) on the
back of better volumes of gravel processed (+23%). These increases
were achieved despite a temporary suspension of activities at
Tirisano while management works on delivering against the new plan
detailed in the release of July 12, 2012.
Second quarter operational update:
Volume and carat production for the Company’s operational mines for
the quarter ended August 31, 2012 was as follows:
Volumes of gravel
processed (m3) Carats Produced
Q2 2013 Q2 2012 % change Q2 2013 Q2 2012 % change
Saxendrift
+ Jasper 476,825* 379,483 26% 1,876** 1,880 0%
Saxendrift
Bulk X-ray 4,804 - - 120 - -
Tirisano 57,803 64,706 -11% 558 607 -8%
Klipdam 209,081 164,267 27% 2,274 1,730 31%
Total 748,517 606,456 23% 4,828 4,218 14%
- Comprising 256,977 m3 from Saxendrift and 219,848 m3 from Jasper
that were processed at Saxendrift
- Comprising 705 carats from Saxendrift and 1,171 carats from Jasper
using Saxendrift’s processing infrastructure
Saxendrift Complex:
- Saxendrift and the newly acquired Jasper Project achieved a 26%
combined year-on-year increase in volumes processed to 476,825 m3
for the second quarter which, along with production from the
Bulk X-ray project, delivered a 6% increase in diamond
production (1,996 carats); operationally, the mine achieved its
budgeted throughputs for the period.
- Saxendrift has over the past two quarters moved to processing
lower grade sandy gravels which make up most of the remaining
resources. This requires better mining efficiencies and in-pit
screening to maintain a profitable production profile for this
part of the greater Saxendrift, Saxendrift Hill and Jasper
deposits
- A preliminary bulk-sample was mined during August 2012 on the
"next door" Jasper part of the deposit with the intention of
developing a better understanding of Jasper's diamond grade and
value characteristics and its potential to extend the life of
the Saxendrift Complex using the existing mining and processing
infrastructure.
The focus at the Bulk X-ray plant was the reprocessing of
recovery tailings as well as the implementation of Continuous
Operations (“Contops”) and optimizing the materials preparation
area to convert the pilot sampling plant to meet the needs of a
continuously operated production plant. A grade of 2.5 carats /
100 m3 was achieved from processing 4,808 m3 of tailings
material.
- Initiatives to increase and extend the mine life of Rockwell’s
package of Middle Orange River properties and the associated
operational footprint are ramping up and include the
introduction of the Jasper Project, Wouterspan Project and
Saxendrift Hill Project into the operation:
- Further work on Jasper will include a detailed drilling
campaign and additional bulk sampling to define mineral
resources.
- Work has commenced on constructing a processing facility
utilizing the Bulk X-ray technology that was successfully
piloted at Saxendrift, with a monthly processing capability
of 100,000 m3 on the nearby Saxendrift Hill. Production is
planned to start in the first quarter of calendar 2013.
- The pre-feasibility study for Wouterspan is underway; work
is on schedule and completion is expected by year end.
Tirisano:
- With the Tirisano right sizing strategy approved early in July
2012, mining operations were put on hold and work concentrated
in reconfiguring the processing circuit. The rationalization
project is on track and mining operations are scheduled to
resume at a monthly mining rate of 50,000 m3 by the end of
September 2012.
- The new wet front end that was commissioned early in the second
quarter has been integrated into the new processing plant.
Positive results have been received from the testing phase
conducted during the quarter indicating that the plant will have
an improved ability to process the clay-rich Tirisano gravels.
- Volumes processed at Tirisano during the first six weeks
amounted to 57,803 m3, with the recovery of 558 carats, a year-
on-year decline of 11% and 8%, respectively, from the second
quarter of fiscal 2012.
Klipdam:
- Klipdam achieved a 27% year-on-year increase in volumes
processed to 209,081 m3 for the second quarter; however, it fell
short of the quarterly throughput target due to continued plant
and mining limitations. These are being addressed with the
installation of a second barrel screen in the processing plant
and a continued focus on improving availabilities of the mining
fleet.
- Notwithstanding the above, the mine’s diamond production
increased by 31% year-on-year to 2,274 carats as a result of an
improved overall size distribution and quality from mining more
of the paleaochannel gravels and primary Rooikoppie material.
Commenting on Rockwell’s operational performance for the second
quarter, James Campbell, CEO stated that: “As a direct result of the
initiatives comprising our diamond value management focus, Rockwell’s
overall performance continues to show encouraging improvements.
Saxendrift has met its production targets for the first two quarters
of fiscal 2013. We continue to learn valuable lessons that we can
selectively implement at our other properties in the Middle Orange
River region to extend their economic lives and increase production.
Through the concerted efforts of Rockwell’s executive and mine
management teams, we quickly right-sized the Tirisano mine to adjust
to the current diamond market, positioning it to provide positive
returns. At Klipdam, we were able to mine a better resource-area and
the mine delivered a good operational performance. We still have some
way to go in order to achieve our production targets which is a high
priority for Klipdam in coming months.”
For further information on Rockwell and its operations in South
Africa, please contact
James Campbell CEO +27 (0)83 457 3724
Stéphanie 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 home jurisdiction filings that are available at
www.sedar.com.
12 September 2012
Sasfin Capital
(a division of Sasfin Capital)
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