diamonds are in, page-5

sh!t this backfired to quick on me, will have to hope on a end of day rally.

They have diamonds what else does the market want?


Level 3, 46 Ord Street West Perth WA 6005, PO Box 1153 West Perth WA 6872
Tel +61 (08) 9483 3500 Fax +61 (08) 9483 3599 Email [email protected]
ACN 078 606 434
ASX and Media Release
Tuesday 6th February 2007
STRONG DIAMOND RECOVERIES FROM INITIAL DIAMOND MINING OPERATIONS OFFSHORE, NAMIBIA
Diamond mining from Bonaparte Diamond Mines’ Diaz Point 1 (DP1) project in offshore Namibia has exceeded initial expectations with 1,448 diamonds weighing 705 carats recovered in the first 8.5 days of operations.
The diamond recoveries by the MV DF Discoverer, in the DP1 Joint Operations (JO) area in ML111 off Luderitz, Namibia are better than expected. In the area mined to date, more diamonds have been recovered than were predicted from the grade estimates within the defined Indicated Resource area derived from sampling data
More importantly, the mining to date has also shown that the mineralisation and payable grades are more extensive than originally defined by the sampling data. Hence mining to date has progressed into some areas not included in the original resource estimate and mine plans.
Marine diamonds recovered by Bonaparte from DP1
The diamonds recovered to date are 95% gem quality, which is typical of marine diamonds produced in the Luderitz area and the average size, at 0.49 carats/stone, is significantly higher than displayed in most deposits delineated to date in the Luderitz area.
Mine plans comprising 625m2 mining blocks (25m x 25m) have been prepared for the 7 areas covering a total area of 315,000m2 which contains an Indicated Resource of 63,000 carats.
Bonaparte Diamond Mines (“Bonaparte”) (ASX code:BON) Managing Director Mike Woodborne said, “The initial mining results are very encouraging and validate our expectations for generating substantial cash flow from the JO area based on the comprehensive resource development programme we completed in Q4 2006.” Bonaparte is entitled to a 30% net revenue share from diamond sales after deducting mining and operating costs.
Mr Woodborne said “We are very pleased with the participation of our JO partners and mining operator, Diamond Fields International Ltd (“DFI”). The cashflow to be generated from the sale of diamonds mined from the JO area will be Bonaparte Diamonds’ first return from its offshore diamond mining plans.”
Mr Woodborne added that, “The Company is moving ahead with a broader strategy to diversify its diamond production operations.”
Website www.bonaparte.com.au

Level 3, 46 Ord Street West Perth WA 6005, PO Box 1153 West Perth WA 6872
Tel +61 (08) 9483 3500 Fax +61 (08) 9483 3599 Email [email protected]
For further information please contact
Ian Howarth
Farrington National
BH - (03) 9223 2465
Mobile - 0407 822 319
Email: [email protected]
Michael W Woodborne or
Managing Director
+ 61 8 9485 3500
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Michael W Woodborne (M.Sc, AusIMM, AIG, Pr.Sci.Nat), who is an employee of the Company. Mr Woodborne has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Woodborne consents to the inclusion in the report of the matters based his information in the form and context in which it appears
Background
Bonaparte is one of few companies internationally and the only Australian listed company, which currently conducts marine diamond exploration. The company presently has three active marine projects located off the coast of Namibia, in addition to its land based projects in South Africa and Australia. Through its Joint Operations (JO) agreement with DFI, Bonaparte has exclusive access to two areas, Diaz Point 1 (DP1) and Diaz Point 2 (DP2). These cover a total of 1,600,000m2 within the Diaz Reef resource area in DFI’s mining licence, ML111. Bonaparte retains a 30-86% net revenue interest in mining of any areas classified as Indicated Resource on the basis of sampling it completes.
In October 2006 the Company completed a sampling programme in the DP1 area using a dedicated marine diamond sampling vessel and recovered a total of 291 gem quality diamonds weighing 136.05 carats from a total of 577 samples. The two largest gems recovered weighed 6.38 carats and 4.07 carats. The diamonds recovered have been independently valued at a weighted average of in excess of US$400/carat for the 2 parcels. This valuation, which is well above the industry average for run of mine marine gem production, attests to the quality of the deposit.
Mining operations are initially being conducted under the terms of a short form agreement which will be replaced by a more comprehensive agreement when completed.
In summary, as DFI have elected to operate, the JO will be conducted on a 70/30 basis which gives Bonaparte the right to 30% of the proceeds from the sale of any diamonds recovered during the operations in return for an obligation to pay 30% of the operating costs. The mining shall be undertaken under an agreed Mining Plan and detailed daily schedule of agreed operational costs. Until the full agreement is signed Bonaparte’s obligation to pay for its share of total costs is limited to AUD$350,000. The full agreement is expected to be completed within the next few weeks and will provide for other normal commercial terms governing mining operations.
Website www.bonaparte.com.au