December 05, 2007 Rockwell Attains Outstanding Prices for its November Diamond Tender
December 5, 2007, Vancouver, B.C. -- Rockwell Diamonds Inc ("Rockwell" or the "Company") (TSXV: RDI; OTCBB: RDIAF; JSE: RDI) reports on its diamond tender sales completed in November 2007.
At the diamond tender completed on November 28, the Company offered a total of 2,483.33 carats for sale, representing production from the Company's mining operations at Wouterspan, Holpan and Klipdam, and its bulk sampling program at Makoenskloof for part of October and November 2007.
Rockwell received US$4,996,305 for this tender which equates to US$2,011 per carat. The year to date average for Rockwell's diamonds sold is approximately US$1,643 per carat, which is 9.5% above the Company's projected average value for 2007 of US$1,500 per carat.
Average Price (US$ per carat)
Diamonds recovered during the October and November period were produced at an operating cost of approximately US$3.30 per tonne or US$990 per carat, which is marginally above the target cost of US$3.00 per tonne. This reflects higher operating costs at the Makoenskloof where production levels have not yet reached an optimum level to achieve the economies of scale. The strengthening of the ZAR against the US Dollar over this period, by almost 6%, and increases to the cost of fuel have contributed to the slight increase in operating cost. Of the tender revenue, 51% is currently attributable to Rockwell.
This largest stone sold in the latest tender was a 49.73 carat stone recovered from Makoenskloof. The tender also included an exceptional 7.28 carat flawless pink diamond recovered from Holpan which achieved a sales price of US$1,054,000 which equates to US$145,000 per carat (see also Rockwell News Release December 3, 2007).
The average size of the parcel of diamonds sold 1.69 carats, with 27 stones being over 10 carats in size. The distribution of stones larger than 10 carats was as follows:
10 – 20 carats: 21
21 – 30 carats: 4
31 – 40 carats: 1
41 – 50 carats: 1
President and CEO Dr. John Bristow noted that "Rockwell was most encouraged by the high average value obtained for this latest sale, particularly considering that year end sales are generally not as robust and strong as diamond sales held in the first half of the year. This bodes well for prices of large high value diamonds in the new year."
For further details on Rockwell Diamonds Inc., please visit the Company's website at ww.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
John Bristow President and CEO
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