Rockwell Diamonds Inc.
OTC Bulletin Board : RDIAF

Rockwell Diamonds Inc.

July 07, 2008 08:30 ET

Rockwell Achieves Excellent Average Prices From June 2008 Diamond Sale

Includes first sale of Saxendrift production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Rockwell Diamonds Inc ("Rockwell" or the "Company") (TSX:RDI)(OTCBB:RDIAF)(JSE:RDI) reports on its fifth diamond sale for 2008 completed on June 30, 2008.

The Company offered a total of 2,672.92 carats for sale, representing diamond production for most of the month of May and the first week of June 2008 from the Wouterspan, Holpan, Klipdam, and Saxendrift mining operations.

Diamond production in this period was achieved at an operating cost of approximately US$4.29 per tonne, reflecting an increase over the target range of US$3-3.50, as a result of a combination of start-up costs for Saxendrift and low throughput through the existing rotary pan plant there that comprises four pans. Average operating costs for the quarter ending May 31, 2008 were approximately US$3.69 per tonne.

Rockwell realized total revenue of US$6,967,850 for this sale, representing an average price of US$2,606 per carat. Sales details from production from the individual operations are tabulated below.

Wouterspan 659.39 1,615
Holpan 613.00 1,112
Klipdam 1,092.81 4,027
Saxendrift 307.72 2,660
TOTAL 2,672.92 $2,606

There was a continued strong demand for Rockwell rough diamonds. Sales prices achieved for the diamonds showed strength in all categories as has been the trend throughout calendar 2008.

Prices received for large (+10 carat) stones of good colour were particularly strong: US$34,650 per carat was achieved for a 69.59 carat stone, US$23,594 per carat for a 20.98 carat stone, and US$21,058 per carat for a 10.47 carat stone.

The distribution of diamonds larger than 10 carats sold in this latest sale by Rockwell was as follows:

- 16 stones of 10 - 20 carats

- 5 stones of 21 - 30 carats

- 1 stone of 50 - 60 carats

- 1 stone of 60 - 70 carats

President and CEO John Bristow noted, "The prices achieved for this sale reflected on-going strength in the larger (+2 carats) end of the gemstone market. We are very encouraged by the high average prices achieved for our first sale of diamonds recovered from the Saxendrift operation on the south bank of the Middle Orange River, although we are mindful that the parcel of stones from this locality was small (307.72 carats). Further, the Company is on-track with the construction of a new Rotary Pan plant at Saxendrift, and plans to commission the plant in the third quarter of our 2009 fiscal year."

For further details on Rockwell Diamonds Inc., please visit the Company's website at or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

John Bristow, President and CEO

Forward Looking Statements

This release includes certain statements that may be deemed "forward-looking statements". Other than statements of historical fact all statements in this release that address future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that each Company expects are forward-looking statements. 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 market prices, exploitation and exploration successes, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, availability of capital and financing, geopolitical uncertainty and political and economic instability, and general economic, and market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Rockwell, Investors should review Rockwell's annual Form 20-F filing with the United States Securities and Exchange Commission and the Company's home jurisdiction filings that are available at

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Rockwell Diamonds Inc.
    Susie Bell
    Investor Services
    (604) 684-6365 or 1-800-667-2114
    (604) 662-8956 (FAX)