Further to the previous announcement that the Company would be extending the normal year-end shutdown to
The Wouterspan and Saxendrift operations are located near to each other on the Middle Orange River. A new low cost, high volume plant was successfully commissioned at Saxendrift in the latter part of 2008. Current plans are to rationalize production at the two operations, focusing on ramping up production at the new Saxendrift plant in February and suspending operations at the lower grade Wouterspan operation until such time as a new high volume, low cost, twin modular 18-foot pan plant is constructed and commissioned at Wouterspan.
The proposed suspension of operations at Wouterspan is, unfortunately, likely to result in the reduction of staff at Wouterspan and to this end negotiations have been initiated with the Company's employees and the National Union of Mine Workers, which is the labour organization representing the majority of the Company's employees. The longer term plan is to upgrade the Wouterspan plant as described above and to then reinitiate mining and processing.
Maintenance and modifications for further cost savings (for example, replacement of the de-sanding unit at Holpan with a simple, effective low cost degrit and cyclone system) are on-going at all of the Company's other operations, which are scheduled to restart at the end of January.
President and CEO
Financial results for the period ended
John Bristow President and CEO No regulatory authority has approved or disapproved the information contained in this news release. 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 40-F filing with the United States Securities and Exchange Commission www.sec.com and the Company's home jurisdiction filings that are available at www.sedar.com.
SOURCE Rockwell Diamonds Inc.