| Mon 21 May 2012, 14:30 | | RDI - Rockwell - Feedback on successful implementation of strategic projects at |
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RDI
RDI
RDI - Rockwell - Feedback on successful implementation of strategic projects at
Saxendrift
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: CA77434W2022
Share code on the TSXV: RDI CUSIP Number: 77434W103
Share code on the OTCBB: RDIAF
("Rockwell")
ROCKWELL PROVIDES FEEDBACK ON SUCCESSFUL IMPLEMENTATION OF STRATEGIC PROJECTS AT
SAXENDRIFT
May 21, 2012 Vancouver, BC - Rockwell Diamonds Inc. ("Rockwell" or the
"Company") (TSX: RDI; JSE: RDI; OTCBB: RDIAF) is pleased to announce the
successful completion of two strategic projects, namely the new in-field screen
and the bulk x-ray and single particle sorter plant at its Saxendrift mine which
is known for its high value gem quality diamonds. These were the first capital
projects approved by the Board for implementation by the new management team in
support of the diamond value management principles that underpin Rockwell`s
strategic growth path.
In-Field Screen
The first of a series of strategic projects, the in-field screen at Saxendrift
which was commissioned in order to address the high sand content in the gravel
that was impacting the mine`s ability to achieve its productions targets. In
July 2011, following an evaluation of the available technologies to process the
sand rich gravels, which were often damp, the Board approved the replacement of
Saxendrift`s in-field screen with new fit for purpose technology.
The new 3.0m x 8.0m Dabmar Bivitec screen is designed to treat gravels with a
high sand and moisture content at the required processing rates. The project,
which included a magnetic scalping plant, came in under budget and has been
delivering the anticipated benefits for the past four months. The screen is
running in excess of 95% efficiency notwithstanding the fact that it is
operating at 17% above its design throughput. Since the new plant came on stream
in November 2011, the mine has been able to increase its processing capacity by
30% although increasing the bottom cut-off and the implementation of continuous
operations ("contops") also had a significant impact.
"Another meaningful positive impact of the new in-field screen is enhanced pan
plant efficiency. This is due to the higher quality gravels, cleared of excess
sand and small particles being fed into the plant," explained James Campbell,
CEO of Rockwell. "We are now also in a position to consider mining certain
blocks that have a higher sand content, that could previously not be processed
and have the potential to increase the life of mine at Saxendrift."
Commenting further on the strategic importance of this project, James Campbell,
CEO of Rockwell added that: "The new in-field screen, along with contops and a
change in the bottom cut-off has enabled us to increase our monthly volume
throughput by over 30% whilst maintaining our operating costs at the same level
as a year ago. This is despite the significant rise in fuel prices, a wage
increase and an ageing mining fleet requiring greater maintenance. Based on the
results of this project, the technology will be incorporated into the mines
which we are planning to build at our Middle Orange River projects to grow our
production profile."
Bulk x-ray system
The commissioning of the bulk x-ray technology that was approved by the Board in
September 2011 was completed to scope and on budget in mid April 2012 with very
encouraging results so far. This strategic initiative is based on a high
throughput Bourevestnik (BV) sorter and one BV single particle sorter and is
aimed at improving concentrate efficiency and final sorting of diamond bearing
ore with a total capital cost of $1.5 million. Having started processing old
recovery tailings at Saxendrift on 16 April 2012, a total of 316 stones
totalling 1,109 carats have been recovered in the first four weeks of
production. This includes 14 stones exceeding 10 carats with the largest
weighing 52.67 carats.
This project has been scoped as a `Proof of Concept` testplan, which if
successful could be applied to Rockwell`s other, as yet undeveloped, Middle
Orange properties.
The project programme includes sampling of recovery and pan plant tailings. Once
complete, the 100 tph plant will be used to bulk sample the gravels from the
Jasper Mine, subject to the acquisition proceeding as planned.
"The preliminary results from testing the bulk x-ray machine are extremely
encouraging: diamond recoveries have exceeded expectations and we are
increasingly optimistic that this technology will provide a more efficient
alternative to the traditional pan plants used by Rockwell until now," commented
Campbell. "Once the proof of concept has been fully tested, it is our intention
to deploy the technology into our new projects located along the Middle Orange
River to ensure efficient recovery of the large gem quality diamonds for which
the region is known. The immediate priority will be to use this new capability
to bulk sample the Jasper property and thus for the first time be able to
declare a resource based on more efficient recovery technology."
Campbell concluded that: "The combination of the fit for purpose in-field screen
and the bulk x-ray technology embodies our diamond value management principles.
It will provide Rockwell with a blue print for the development of our pipeline
of high potential projects in the Middle Orange River region. Our updated pre-
feasibility at Wouterspan, scheduled for completion this year, will be based on
a combination of these diamond winning technologies."
"The completion of these two important projects is another strategic milestone
for the new Rockwell management team. They were the first to be approved by the
Board in 2011 with the implementation being integral to the Company`s
turnaround," said Mark Bristow, Chairman, Rockwell. "The successful
implementation demonstrates the team`s ability to deliver and reinforces our
belief that Rockwell is on track to unlocking the full potential of its Middle
Orange River projects and sustainably increasing its production profile."
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 production 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 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
and milling; 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 and diminishing quantities or grades if mineral resources;
uncertainties related to unexpected judicial or regulatory procedures or changes
in, and the effects of, the laws, regulations and government policies affecting
our mining operations; changes in general economic conditions, the financial
markets and the demand and market price for mineral commodities such and diesel
fuel, steel, concrete, electricity, and other forms of energy, mining equipment,
and fluctuations in exchange rates, particularly with respect to the value of
the US dollar, Canadian dollar and South African Rand; changes in accounting
policies and methods that we use to report our financial condition, including
uncertainties associated with critical accounting assumptions and estimates;
environmental issues and liabilities associated with mining and processing;
geopolitical uncertainty and political and economic instability in countries in
which we operate; and labour strikes, work stoppages, or other interruptions to,
or difficulties in, the employment of labour in markets in which we operate our
mines, or environmental hazards, industrial accidents or other events or
occurrences, including third party interference that interrupt operation of our
mines or development projects.
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.
Johannesburg
21 May 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 21/05/2012 14:30:01 Produced by the JSE SENS Department.
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