Rockwell Diamonds Acquires Additional Licenses in Middle Orange River Region

Rockwell Diamonds Inc. (TSX:RDI,JSE:RDI) provided further information on its recently acquired alluvial diamond properties and plant from Bondeo 140 CC. It was also granted additional licenses in the Middle Orange River Region.

As quoted in the press release, some of the highlights of the acquisition include:

• The projects, Remhoogte / Holsloot (“the Properties”) and Bo-Karoo, are contiguous to Rockwell’s existing properties in the MOR region, South Africa
• The Properties have produced more than 7,300 carats of high quality diamonds (at a sample grade of some 0.8 carats per 100 m3 (“cphm3”)) valued at US$3,000 to US$4,000 per carat for the nine months ended December 2014
• The Properties have the potential to increase the Company’s portfolio by 11 to 12 million m3 of gravel at target grades of 0.4 to 1.5 cphm3. The Transaction is expected to increase the Company’s existing processing capacity in the MOR by approximately 200,000 m3 per month
• The Company has also recently been granted additional prospecting and mining rights in the MOR, spanning an area of more than 50,000 hectares (“ha”)
• Closing of the transaction is expected to occur in Q2 2015, subject to satisfaction of all conditions precedent, Section 11 applications have been filed with the Department of Mineral Resources (“DMR”)

James Campbell, president and CEO of Rockwell, commented:

We are confident that we have delivered a value accretive acquisition with Remhoogte / Holsloot and Bo Karoo, which will be a foundation to further Rockwell’s MOR growth strategy. The Remhoogte / Holsloot properties add Exploration Targets of some 11 to 12 million m3 of gravels, with target grades which are higher than those on our current MOR properties. Furthermore they are early life mines with exploration upside potential comprising three recently commissioned processing plants that include some state of the art Bulk X-ray technology. Recent production has confirmed the high value per stone potential of the properties and the Transaction also includes the brownfields Bo Karoo project, where bulk-sampling has produced typical MOR style stones in the past.

Click here to read the full Rockwell Diamonds Inc. (TSX:RDI,JSE:RDI) press release.