| Mon 4 Jul 2011, 14:32 | | RDI - Rockwell Diamonds Incorporated - Rockwell provides a diamond value |
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RDI
RDI
RDI - Rockwell Diamonds Incorporated - Rockwell provides a diamond value
management update and further additions to the board and management team in line
with the ongoing rollout of its strategic plan
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 provides a diamond value management update and further additions to the
board and management team in line with the ongoing rollout of its strategic plan
July 4, 2011 Vancouver, BC - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) announces progress with the
diamond value management programmes which it recently initiated to enhance
diamond recoveries as well as changes to the board of directors and management
team.
Diamond value management update:
Following on from the strategic review which was conducted at the beginning of
the 2011 calendar year, Rockwell is taking further decisive action to improve
the recovery of diamonds and turn its underperforming assets around. James
Campbell, the newly appointed CEO and President of Rockwell who officially took
office on June 1, 2011 explains: "Two factors crucial to successfully mining
alluvial diamonds are the management of the geology and the metallurgical
processes. We have invested significant time and effort in fully understanding
our resources and the results have been confirmed by our independent qualified
person. The grades and diamond values in our NI 43-101 reports are supported by
actual production data and sales prices in addition to sample estimates. This
conservative approach gives us comfort that they are currently accurate as we
implement improved concentration and recovery technology to translate the
resource into efficient extraction."
The Company has accelerated a number of projects to enhance the recovery of
diamonds on existing operations as well as at the Tirisano project, currently
under development. These will be driven by Dr Kurt Petersen, a world renowned
diamond metallurgist who has been retained by Rockwell to improve and sustain
the Company`s rate of diamond recovery.
A review of the Saxendrift processing plant uncovered opportunities to
considerably improve front end processing efficiencies. Based on these findings,
the Board has approved the replacement of the current vibrating screen at the
in-
field screening plant with a 3.0m x 8.0m DabmarBivitec screen, which is fit-for-
purpose technology designed to process wet and sticky ores at the required
processing rates. The capital cost for the replacement screen will be $600,000.
"A diamond size frequency analysis of Saxendrift`s production also showed that
by increasing the recovery cut off from the current 2.5mm to 5mm, we could
significantly improve plant efficiency," says Campbell. "In addition to
improving the plant throughput, productivity gains could be realized by
processing less fine materials and lowering overall waste volumes.
There is a focus on maximizing the stones exceeding 10 mm in size and minimizing
the costs associated with processing volumes of material that may provide little
reward or even negative returns.
At the Tirisano project, Paradigm Project Management, a mine project management
consulting firm with experience of constructing more than 100 diamond processing
plants, has completed a plant review. Their report highlighted improvements to
ensure that Tirisano delivers the anticipated grades after commissioning.
The mine management team has also been changed and strengthened (see management
changes below) to ensure the effective implementation of the review
recommendations and consequently the commissioning work schedule has been
modified to accommodate the changes. The first two streams of the processing
plant will be commissioned during the course of the third quarter of calendar
2011. A review of the flow diagrams is underway by the Company`s metallurgists
to incorporate the latest recovery technologies and thereafter construction will
resume on the remaining two streams.
Changes to the board of directors and management team:
The Company welcomes the appointment of James Campbell to the Board of directors
with immediate effect.
"We are pleased to formalize James` appointment to the Board of Rockwell," says
Dave Copeland, Chairman of Rockwell. "In his first month as CEO he has already
swiftly put into action a number of initiatives to improve the Company`s long
term performance and we are confident that under his leadership we will achieve
our growth and value creation objectives."
Rockwell is also pleased to announce the appointment of a new Chief Operating
Officer to replace Graham Chamberlain who has agreed to assume the critical
responsibility of General Manager, Tirisano, focussing his time on successfully
developing this asset which is one of the Company`s most strategic assets, in
order to ensure that it meets its full potential. In addition to these
responsibilities, Graham will assume the role of Director of Rockwell Diamonds
Northwest (a subsidiary of Rockwell) with the responsibility of further
developing the Company`s relationship with its strategic regional partner,
Magopa Minerals.
Michael Stanley Hunt will assume the role of Chief Operating Officer of Rockwell
with effect from July 11, 2011. Michael has an excellent track record in diamond
production, spanning more than three decades. Until joining Rockwell, he worked
at Pangea DiamondFields plc as Operations Manager from 2007, keeping these
responsibilities after its merger with IGE Resources AB, Sweden in December
2010. Previously he worked at De Beers for more than 20 years in numerous roles
including Assistant Research Manager at the Diamond Research Laboratories; Mine
Manager at their smallest mine, TheOaks and Assistant General Manager at the
world`s largest diamond mine, Orapa. Michael has a M.Sc. in Advanced Chemical
Engineering (Georgia Institute of Technology, USA) and is a professional
engineer in South Africa (Pr. Eng.). He is a member of the Mine Metallurgical
Manager`s Association of South Africa and the South African Institute of Mining
and Metallurgy.
"We are delighted to have attracted a diamond production specialist of Michael`s
calibre to the Rockwell team," explains Campbell. "Building on our excellent
understanding of Rockwell`s resources, our focus has migrated to diamond value
management. Accordingly, we will optimize our metallurgical processes to
consistently recover the high quality gem stones for which our mines are
recognized. Michael is well equipped to lead these initiatives which are key to
the Company`s turnaround."
For further information on Rockwell and its operations in South Africa, please
contact
James Campbell
CEO
+27 (0)83 457 3724
Stephanie 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 mining 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 is also at an advanced stage of completing the
acquisition of the Tirisano property.
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;
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.
In particular there can be no assurance that refinancing funds will be available
to Rockwell on acceptable terms or any terms at all.
For further 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
4 July 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 04/07/2011 14:32:25 Produced by the JSE SENS Department.
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