| Tue 16 Nov 2010, 7:46 | | RDI - Rockwell - Rockwell achieves strong prices for latest diamond sales |
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RDI
RDI
RDI - Rockwell - Rockwell achieves strong prices for latest diamond sales
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 STRONG PRICES FOR LATEST DIAMOND SALES
RECOVERY OF LARGE STONES SHOWS CONSISTENT TRENDS
November 15, 2010, Vancouver, B.C. - Rockwell Diamonds Inc ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces the results of the
latest sales of its diamond production from South African operations for the
period mid-August to mid-September 2010. Out of a total of 5,294.55 carats
sold, 58 stones exceeded 10 carats and 4 were larger than 50 carats.
Rockwell operates the Holpan and Klipdam mines north of the city of Kimberley,
as well as the Saxendrift mine on the Middle Orange River ("MOR") southwest of
Kimberley. The Company is conducting a bulk sampling project on alluvial
deposits at the Klipdam Extension property, located to the east of its Klipdam
operation. All of these operations, and the Wouterspan project which is on care
and maintenance, are located in the Northern Cape Province of South Africa.
Diamonds over 50 carats
During the mid-August to mid-September period, the Company recovered 4 plus-50
carat stones at Saxendrift and Klipdam. In the diamond trade, these would be
referred to as sawable stones, that is, stones from which more than one cut
diamond could be derived. Details of each are noted below:
Saxendrift:
- a 74.43-carat clean, off-white, rounded, octahedral stone
Klipdam:
- a 79.13-carat white stone with inclusions (spots) of irregular blocky shape
with resorption pits
- a 59.78-carat clean off white irregular shaped stone
- a 62.77-carat, light fancy yellow rounded octahedral stone
Following cleaning and valuation, all of these stones were sold into Rockwell`s
joint venture agreement with Steinmetz Diamond Group ("SDG"). Once beneficiated
and sold as polished goods, they will provide additional profit share revenue to
the Company.
Sales data for Operations and Bulk Sample Project
Sales for the two month production period included 4,495.48 carats of diamonds
from the Saxendrift, Klipdam and Holpan operations, and 799.07 carats from the
Klipdam Extension bulk sampling project, for a total of 5,294.55 carats.
Mine or Project Carats US$ Total US$/carat
Saxendrift 1,076.40 $1,892,131 $1,757
Klipdam 2,389.82 $3,003,769 $1,256
Holpan 1,029.26 $999,513 $ 971
TOTAL 4,495.48 $5,895,413 $1,311
Klipdam 799.07 $690,550 $ 864
Extension
TOTALS 5,294.55 $6,585,963 $1,244
The size profile of all of the stones recovered and sold for this period is as
follows:
10-20 21-30 31-40 41-50 51-60 61-70 71-
carats carats carats carats carats carats 80carats
28 9 6 1 1 1 2
The diamonds sold were of excellent quality. The recovery of stones larger than
50 carats so far this year is ahead of statistical predictions.
The high average dollar per carat value for Klipdam production was ahead of
expectations, whilst the average value for Saxendrift production was slightly
below expectations due to the lower than planned total production from this
operation during the period caused by higher sand contents in the gravels. The
average price of the diamonds recovered from the Klipdam Extension bulk sampling
project was also higher than the forecast value of US$800 per carat.
ROUGH DIAMOND MARKET
The rough diamond market has continued to show resilience in the calendar year
to date. Prices of larger, good quality stones have held up particularly well
through the year, with increases in clean goods of greater than 10 carats.
Prices for smaller diamonds or Indian goods have softened towards the year end.
Polished prices have continued to show small increases through the year.
President and CEO John Bristow commented "Results from the latest Rockwell
diamond sales reinforce the resilience of the diamond market which has continued
to show signs of steady recovery since the sharp downturn of early 2009. The
strong production and average price from the Klipdam operation was most
positive, and reflects an overall improvement in mining and plant efficiencies.
The commissioning of the Saxendrift in-pit screening unit is also on target and
will help compensate for the impact of the higher sand content in the gravel
deposit and, moving forward, reduce operating costs."
For further details on Rockwell Diamonds Inc., please visit the Company`s
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. There is no certainty of the financing
completing. 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.
Johannesburg
16 November 2010
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 16/11/2010 07:46:00 Produced by the JSE SENS Department.
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