| Mon 7 Jul 2008, 14:50 | | RDI -Rockwell Achieves Excellent Average Prices From June 2008 Diamond Sale |
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RDI
RDI
RDI -Rockwell Achieves Excellent Average Prices From June 2008 Diamond Sale
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: CA77434W1032
Share code on the TSX: RDI & CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL ACHIEVES EXCELLENT AVERAGE PRICES FROM JUNE 2008 DIAMOND SALE
Includes first sale of Saxendrift production
July 7, 2008. Vancouver, B.C. - Rockwell Diamonds Inc ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on its fifth diamond sale
for 2008 completed on June 30, 2008.
The Company offered a total of 2,672.92 carats for sale, representing diamond
production for most of the month of May and the first week of June 2008 from the
Wouterspan, Holpan, Klipdam, and Saxendrift mining operations.
Diamond production in this period was achieved at an operating cost of
approximately US$4.29 per tonne, reflecting an increase over the target range of
US$3-3.50, as a result of a combination of start-up costs for Saxendrift and low
throughput through the existing rotary pan plant there that comprises four pans.
Average operating costs for the four-month period including June were
approximately US$3.60 per tonne.
Rockwell realized total revenue of US$6,967,850 for this sale, representing an
average price of US$2,606 per carat. Sales details from production from the
individual operations are tabulated below.
OPERATION SALES AVERAGE PRICE
(CARATS) (US$ PER CARAT)
Wouterspan 659.39 1,615
Holpan 613.00 1,112
Klipdam 1,092.81 4,027
Saxendrift 307.72 2,660
TOTAL 2,672.92 $2,606
There was a continued strong demand for Rockwell rough diamonds. Sales prices
achieved for the diamonds showed strength in all categories as has been the
trend throughout calendar 2008.
Prices received for large (+10 carat) stones of good colour were particularly
strong: US$34,650 per carat was achieved for a 69.59 carat stone, US$23,594 per
carat for a 20.98 carat stone, and US$21,058 per carat for a 10.47 carat stone.
The distribution of diamonds larger than 10 carats sold in this latest sale by
Rockwell was as follows:
- 16 stones of 10 - 20 carats
- 5 stones of 21 - 30 carats
- 1 stone of 50 - 60 carats
- 1 stone of 60 - 70 carats
President and CEO John Bristow noted "The prices achieved for this sale
reflected on-going strength in the larger (+2 carats) end of the gemstone
market. We are very encouraged by the high average prices achieved for our
first sale of diamonds recovered from the Saxendrift operation on the south bank
of the Middle Orange River, although we are mindful that the parcel of stones
from this locality was small (307.72 carats). Further, the Company is on-track
with the construction of a new Rotary Pan plant at Saxendrift, and plans to
commission the plant in the third quarter of our 2009 fiscal year."
For further details on Rockwell Diamonds Inc., please visit the Company`s
website at ww.rockwelldiamonds.com or contact Investor Services at (604) 684-
6365 or within North America at 1-800-667-2114.
John Bristow
President and CEO
No regulatory authority has approved or disapproved the information contained in
this news release.
Forward Looking Statements
This release includes certain statements that may be deemed "forward-looking
statements". Other than statements of historical fact all statements in this
release that address future production, reserve or resource potential,
exploration drilling, exploitation activities and events or developments that
each Company expects are forward-looking statements. 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 market
prices, exploitation and exploration successes, changes in and the effect of
government policies regarding mining and natural resource exploration and
exploitation, availability of capital and financing, geopolitical uncertainty
and political and economic instability, and general economic, and market or
business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those projected in the forward-looking statements. For
more 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
Date: 07/07/2008 14:50:51 Produced by the JSE SENS Department.
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