| Mon 27 Oct 2008, 14:30 | | RDI - Rockwell Diamonds Incorporated - Rockwell achieves outstanding premiums |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Rockwell achieves outstanding premiums
from the sale of cut and polished stones
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 outstanding PREMIUMS from the sale
of cut and polished stones
October 27, 2008, Vancouver, B.C. - Rockwell Diamonds Inc ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) reports on the premiums achieved
from the sale of three cut and polished stones through its agreement with the
Steinmetz Diamond Group ("SDG"). These stones were recovered from its
Makoenskloof project and Wouterspan mine, located in the Middle Orange River
area of South Africa.
Three exceptional yellow gemstones, manufactured by SDG from rough diamonds
produced by Rockwell, have now been sold to buyers in southeast Asia. The
finished stones included:
* a 102-carat, vivid yellow cut from a 212-carat, yellow rough diamond;
* two matching, 10-carat, vivid yellow diamonds cut from a 36-carat yellow
rough diamond.
As a consequence of the sale of these three manufactured stones Rockwell has
achieved:
- a 50% premium on price over and above the rough diamond value realized for
the original 212-carat stone;
- an 80% premium on price over and above the rough diamond value realized for
the original 36-carat stone;
- an increase in value realized from these stones and achieved through the
manufacturing skills and marketing expertise of SDG, resulting in
additional revenues of approximately US$2 million to Rockwell.
President and CEO John Bristow noted "We are encouraged by the outstanding
margins that have been achieved through the cutting and polishing of Rockwell
stones. We have seen margins of 10%, 17%, 50%, and 80% on four stones and are
seeing the benefit of our unique long term beneficiation agreement with our
partners at SDG. We have a pipeline of product going through the SDG facility
and expect to see further strong returns to the Company. This additional
revenue received for our beneficiated product provides Rockwell with flexibility
in respect of our approach to our diamond sales in the current environment of
turbulent financial markets."
For further details on Rockwell Diamonds Inc., please visit our website at
www.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.
Canada
27 October 2008
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 27/10/2008 14:30:01 Produced by the JSE SENS Department.
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