Wrap Text
Update on results of bulk x-ray technology
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
RESULTS OF PILOT BULK X-RAY TECHNOLOGY DEMONSTRATE ROCKWELL’S
DELIVERY ON TOTAL DIAMOND VALUE MANAGEMENT
December 3, 2012 Vancouver, BC – Rockwell Diamonds Inc. ("Rockwell"
or the "Company") (TSX: RDI; JSE: RDI) updates the market on its
pilot Bulk X-Ray project at the Saxendrift Mine. Despite this project
being a pilot study it has already repaid the cost of setting it up
from processing the old recovery tailings.
The Bulk X-Ray project was initiated in November 2011 and
commissioned ahead of schedule, five months later with a capital
outlay some 7% lower than the initial budget of $1.5 million. During
the six month period to date, a total of 1,596 carats have been
recovered from reprocessing 27,609 m3 of old recovery tailings that
had previously been processed by another operator using older
technologies. These included three particularly large stones weighing
52, 72 and 145 carats respectively. In addition to a capital
investment of $1.4 million, operating costs of $0.39 million were
incurred, with revenue from sales of the diamonds recovered totalling
US$4.2 million over the period to October 31, 2012.
The recovery tailings achieved a grade of 2.97 carats/100 m3. The
recovery of diamonds from these tailings suggests that the deployment
of this technology in run-of-mine applications across Rockwell’s
Middle Orange River projects should yield additional recoveries
beyond the stated grades and diamond values which have been
identified using historical technology. There is the added benefit
that the new high throughput technology can also lead to a meaningful
reduction in operating costs.
“We are delighted that our initial capital outlay was paid back and
believe this technology will become an integral component in our
total diamond value management strategy,” explains James Campbell,
CEO, Rockwell Diamonds. “The work represents the opportunity for a
step change in Rockwell’s approach to diamond recovery, enabling a
quicker payback than any other type of recovery plant. Particularly
noteworthy is the fact that we achieved this only from material that
had been processed previously. We have yet to deploy the technology
in a run of mine application.”
“Having completed the six-month pilot study, we have satisfactorily
completed our proof of concept for the Bulk X-Ray technology, with
its dual benefits of more efficient recovery of diamonds and lower
operating costs,” added Campbell. “Our projects team has also
demonstrated its capability to replicate the system on other
operations. The next phase is to roll out the technology at the new
Saxendrift Hill Complex mine where the processing plant will be based
on two Bulk X-Ray systems at a monthly processing rate of 100,000 m3.
Production is on track to commence early in the next fiscal year with
an expected total capital outlay of about $2 million to be funded
from working capital.”
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 of 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.
Johannesburg
3 December 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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