| Mon 24 Nov 2008, 15:30 | | RDI - Rockwell - Saxendrift Wet Plant Commissioning And Extension Of |
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RDI
RDI
RDI - Rockwell - Saxendrift Wet Plant Commissioning And Extension Of
Christmas Shutdown
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")
NEW SAXENDRIFT WET PLANT COMMISSIONING ON SCHEDULE AND ON BUDGET
PLANS TO EXTEND CHRISTMAS-NEW YEAR SHUTDOWN
November 24, 2008. Vancouver, B.C. - Rockwell Diamonds Inc. ("Rockwell" or
the "Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) provides an update on the
commissioning of the new Saxendrift wet rotary pan plant and announces plans
to extend the normal year end operational shutdown period of its South
African alluvial diamond mines to conserve cash.
Commissioning of the new high-volume Saxendrift wet rotary pan plant is on
schedule following successful pre-commissioning. Directional and wet testing
was completed during early November and all four modules of this new plant
have subsequently undergone operational commissioning. Two modules are
currently operating under gravel feed and processing mode. The plant has
achieved operating parameters in-line with design specifications and
currently adjustments are being made to feed rates, feed bins, water
balances, conveyor belts, pulleys and magnetic scalpers. Computer control
software is being subjected to rigorous testing and independent health and
safety inspections have been conducted on the plant. The final recovery
unit, which was commissioned ahead of schedule in September, continues to
operate according to specification. The project has been commissioned on
budget.
With its low cost operating configuration and high throughput capacity, the
new Saxendrift plant is an important addition to the Company`s project
portfolio. Controls have also been implemented at Saxendrift to minimize
both commissioning and mining costs during this phase.
The global economic downturn has compounded the seasonal slowdown in the
rough diamond market, placing diamond prices under pressure, and forced major
producers like De Beers to reduce diamond sales to sight holders. Since
October diamond auction tenders in South Africa and Antwerp have resulted in
lower realized prices, and further price weakness could occur over the short
to medium term. Given this price weakness, Rockwell will extend its normal
year end operational shutdown from a planned 2 week period to approximately 5
weeks which will assist the Company to conserve cash. Operations will be put
on temporary shutdown on November 28, 2008, with maintenance and repair work
to be conducted from December 1 to 5. Current plans are to resume operations
on January 5, 2009.
The Company is also reviewing its capital expenditure program for 2009, non-
core activities and all service provider contracts. Management continues to
focus on improved operational practices and efficiencies at each mining
operation, and is actively identifying additional cost cutting opportunities.
Rockwell has achieved its targeted production on a consistent basis since the
beginning of September. As a consequence of its sales agreement with the
Steinmetz Diamond Group, the Company has to date also been able to limit its
exposure to diamond price weakness over the past two months. As of the end
of November 2008, the Company will hold cash reserves of about C$8 million.
President and CEO John Bristow stated "Diamond prices are under pressure and
sales prices achieved by diamond producers in the past six to eight weeks
have been well below those achieved prior to October 2008. Given current
market conditions and the uncertainty as to the longer term situation, we
believe that it is prudent to proactively conserve cash and plan operations
to best deal with the current economic conditions.
We are encouraged by the commissioning and performance of the new Saxendrift
plant and look forward to the higher efficiencies, ease of operation, and
benefits of lower operating costs from this plant."
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 40-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
24 November 2008
Sponsor
Sasfin Capital (A division of Sasfin Bank Limited)
Date: 24/11/2008 15:30:01 Produced by the JSE SENS Department.
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