Rockwell Diamonds Saxendrift operation will be closed by February 2016

South Africa – TSX/JSE-listed Rockwell Diamonds and CEO James Campbell has revealed that its recently acquired property Remhoogte (Bondeo acquisition) could potentially add 63 500 carats to the company’s diamond inventory.

Campbell made the announcement as part of Rockwell Diamonds declaration of an Inferred Mineral Resource at the property - 7.1 million cubic metres of Rooikoppie gravel at a grade of 0.9 carats per 100 m³ (cphm³) with an average value of $2 900 per carat has been estimated.

The Inferred Mineral Resource is the result of historical, geological and field mapping data reevaluation; the survey of areas mined since commencement of operations on the property and the available production and sales results.

The largest stone recovered from Remhoogte to date weighed 178 carats. Steyn Diamante has been operating on the Remhoogte/Holsloot project since March 2014 and has sampled mainly colluvial Rooikoppie gravels from the properties. The diamond register indicates that just over 10 million carats were recovered from the project during the period from March 17, 2014 to February 6, 2015.

Commenting on the transaction James Campbell, CEO and President says: “Estimation of an Inferred Resource at Remhoogte…further entrenches Rockwell’s positioning in the Middle Orange River (MOR) alluvial diamond fields. The Lanyonvale exploration agreement [also recently announced], together with the recently granted mining and prospecting rights in the MOR, will provide additional Greenfield opportunities to support our longer term organic growth objectives.”

“In the short term, our intended acquisition of the Remhoogte/Holsloot project is expected to lift our monthly volume beyond our 500 000 m³ target. With the additional MOR exploration and development projects, there is potential for us to be able to further grow our production base and improve the company’s profitability post the Bondeo acquisition (for Remhoogte). We have launched a formal exploration programme, underpinned by our in depth knowledge of the regional geology, to ensure that we deliver these new opportunities as projects.”

Rockwell Diamonds' Saxendrift plant
Rockwell Diamonds' Saxendrift plant

In addition, as part of its ongoing evaluation of the Bondeo acquisition properties, the company has identified an exploration target with potential for a further 3 – 4 million cubic metres of fluvial-alluvial gravels (target grades of approximately 0.4 to 1.5 cphm³ and anticipated diamond values ranging from US$2 500 to US$4 000 per carat).

Limited sampling of the fluvial-alluvial gravel has recovered 446 carats with the largest diamond recovered being a 27-carat stone. The Company intends to announce a further resource estimation on the fluvial-alluvial gravel once bulk sampling has been completed.

The company is continuing its exploration programme in the region and announces that in fiscal 2016, it plans to spend C$0.35 million (ZAR4 million) on an exploration programme consisting of field mapping and geological delineation; Rooikoppie pitting and fluvial-alluvial drilling across its properties, at Niewejaarskraal and Wouterspan.

At Lanyonvale, a combined programme of mapping, pitting and reverse circulation drilling is planned which could potentially lead to the announcement of an exploration target. Based on the positive results of the Preliminary Economic Study at Wouterspan, pitting will be carried out on a tight grid to add to the geological understanding upon the recommencement of trial mining.

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