See www.riverdiamonds.co.uk !!!

FIRCA gives thumbs up for gold export
21 FEB 2008
-------------------------------------------------------------------------------From Fiji Online

A major breakthrough between the Fiji Islands Revenue and Customs Authority and Westech Gold Limited was reached today.

And as a result the company has been given the go ahead to continue with their gold export without any direct interference by FIRCA.

In a joint statement by the two parties this afternoon, it was announced that the arrangements, which include certain without prejudice payments by Westech, will ensure that the Vatukoula mine can continue to export gold while the partys tax dispute is decided by the courts.

It was also decided that this outcome is in the best economic interest in the country and will ensure the successful operation of the mine, the preservation of employment and resulting economic activity for the Vatukoula/Tavua community.

The statement also said that Westechs tax affairs are confidential.

Accordingly, no further details on these arrangements will be released by either party. shipment of gold that was bound for the overseas market was stopped from leaving the country two weeks ago on the orders of FIRCA following an internal investigation on allegations of tax evasion by the company.

FIRCA approves Westech exports
Saturday, February 23, 2008

WESTECH Mining Ltd and the Fiji Islands Revenue and Customs Authority (FIRCA) have signed a mutual agreement allowing the mining company to export its gold abroad.

FIRCA chief executive officer Jitoko Tikolevu said both parties came to a mutual agreement late Thursday evening.

Mr Tikolevu said FIRCA would be paid a certain amount as part of the agreement.

However, he would not disclose the amount in taxes that WESTECH was to have paid up.

Operations at Vatukoula gold mine came to a halt in August last year after previous owners, Emperor Gold Mining decided to sell.

New owners Westech Gold could only begin full operations after they paid $750,000 owed to FIRCA, after which a garnishee order was lifted from their accounts.

Meanwhile, Westech chief executive officer Brian Wesson confirmed an agreement had been reached between both parties.

He said gold exports by Westech would not be stopped following the agreement between both parties.

"If we did not get it out today (yesterday) then I think we would get it out by Monday," he said.

"We had about 150 people waiting to be re-employed after the talks. These people were put off for a short while because things were at a standstill."

All sounds good I don't mind waiting for the relist and will be holding long term.

The past year has been a very significant one for River Diamonds. We began the
year as a small diamond exploration and development company and ended the year
with the Company well advanced to becoming a mid-cap gold mining company. Our
change in focus to a more diversified mining and exploration company has been
driven by our goal to secure a near production or producing asset

Gold production back on line
Last updated 3/1/2008 9:37:48 AM

Westech Gold Fiji Limited the new owner of the Vatukoula gold mine this week shipped out 504 ounces of gold.
Westech boss Brian Wesson confirmed this to Sunbiz. He said they had continued with business operations since sorting its tax issues with the Fiji Islands Revenue and Customs Authority.
He said they managed to complete maintenance work on one mining plants.
The company had been working on the plant since 2006. "This plant allows us to bring rock to the surface and allow the miners to extract gold from these rocks, so we have been mining from these little rocks," he said.
However, recruitment is on hold. Mr Wesson said they had to concentrate on other issues.
"We haven't been able to take in more people but we're working on this. 150 people have been told that they will be getting employed but we haven't been able to officially inform them. We hope to sort out some issues before we can recruit more people."
Meanwhile, Westech committed $500,000 to its exploration project in Tuvatu Sabeto.
Mr Wesson confirmed exploration work would begin soon.
"We're moving ahead with this project but we still have to recruit for it. We're still looking for geologists and people to join our recruitment team."
The money used to prepare the mine was provided by financiers, Red Lions and River Diamonds of London.
The company will also be paying out $1.5 million of rehabilitation fund later this month.

Does yesterdays RNS stating that trading in the new shares starts on Friday 07.03.08 mean, that, this is when RVD returns to the market?

oilyrag
Yes it looks thet way Fri it is then.

THATS NICE IF ITS BEING REISTATATED WONT BE THAT AMMOUNT MISSING FROM TOTAL.

Update on the Panguma Diamond Project in Sierra Leone

http://moneyam.uk-wire.com/cgi-bin/articles/200803060701304804P.html

River Diamonds Close To Finalising Fiji Deal


By Rob Davies



Dealing with six lawyers in various continents and countries, as they work to finalise a 300 page re-admission document, would surely dishearten many men. To Colin Orr-Ewing, executive chairman of River Diamonds, its all in a days work. In fact he was relaxed enough last week to take off for a weekends skiing after announcing the final details of the deal alongside his annual results. As his companys shares are suspended pending submission of the re-admission document theres not a lot else he can do right now. However, he was able to give Minews time and to provide a summary of how the deal is progressing.
All being well the document will be submitted next week, allowing the shares to start trading again. They were suspended at 4.5p in late November but the company subsequently raised 4.7m through a placing at 6p, ten days before Christmas. Quite what the price will be when the 1,660 m shares become available for trading next week will be interesting to watch.

The reason for the suspension and issuance of new shares is the completion of the acquisition of the Vatukoula gold mine in Fiji, an acquisition which has been underway for some time. In recent years it has had a chequered history, but River director David Lenigas used to be the managing director of Vatukoula back in the early nineties when Western Mining had an interest in it, so Mr Orr-Ewing is under no illusions. Its a high cost mine, for a start. Mr Orr-Ewings estimate is about US$450 an ounce production cost. Even so, with gold heading for the US$1,000 an ounce level that still leaves a healthy margin.

The ability to use the experience of Mr Lenigas will be vital in maximising the value of the resource, which is not small. Vatukoula has a JORC resource of 4.8 million ounces and a reserve of 823,000 ounces. The plan is to achieve production of 27,000 ounces by the end of June this year before working up to 100,000 ounces or maybe 110,000 ounces a year average production. At the moment only three or four stopes are developed and in this kind of small-scale - almost hand mining - operation about a dozen stopes are required to maintain a steady feed to the mill. So far the company has spent 2.5m on recommissioning and has another 2m to still spend. One of the major items needing attention is the crusher and Mr Orr-Ewing admits that a lot of the plant looks a bit tired.

Despite that he feels the mine will turn a profit for three reasons - in addition to the higher gold price. The previous operator had a payroll of 2,000 whereas Mr Orr-Ewings plan is to use only 700. Moreover, the mine was hampered in the past by forward sales that resulted in margin calls as the price went up. Finally, the old manager was reluctant to go underground after a traumatic incident in another mine, which severely limited his ability to run the operation. Mining at Vatukoula is not made any easier by the high underground temperatures. After all it is located in a 2 million year old volcano which is still cooling down. Mine water has a temperature of about 80o C and the mine needs to be cooled by the use of an oil fired system. With oil prices at over US$100 a barrel that doesnt help costs. While Mr Orr-Ewing admits it is hot and humid underground he points out that most mines are uncomfortable places. Something which few people involved in mining would disagree with.

A final factor to bear in mind with this operation is that Fiji is run by a military government after a coup in December 2006. While that does have some impact on aid funding Mr Orr-Ewing does not think it is a major issue. More important to him is that the mine has its own rugger pitch, with a stand.

Govt to support Vatukoula community
12 MAR 2008

"Fijis interim Government says it will continue to support the Vatukoula community until Westech Gold Mines becomes fully operational.

A Cabinet meeting yesterday endorsed supporting initiatives via multi-agency coordination to assist the Vatukoula community and the mining industry.

Minister for Lands, Mineral Resources and Environment Netani Sukanaivalu told Cabinet
yesterday that Westech has demonstrated a commitment to bringing the mine to production proper as per the obligations as mining lease holders, under the Mining Act, through activities deemed to be prerequisite to actual mine production.

He said that to facilitate achievement of production targets, Westech has recruited around 530 employees to date, in a number of areas including mining.

However during tripartite meetings between Government, Westech, and the community, it is also quite clear that Westech at this stage cannot be recruiting all the workers, he pointed out.

As a result, Government will continue its assistance through the Vatukoula Trust Fund as required under the Deed.

He said that to enable the funds to be channelled to the community, a Board of Trustees is to be constituted in accordance to the Vatukoula Trust Fund Deed.

This board will consist of three government representatives, and a representative each of former employees, the Westech Company, and the community.

The Minister said that to facilitate much-needed assistance to the needy, Government will coordinate its activities and pool its resources amongst ministries to ensure the Vatukoula community can find alternative sources of livelihood and basic essentials such as housing, education and water supply and food security."

.

River Diamonds shares rsume trading
AFX


LONDON (Thomson Financial) - River Diamonds PLC said its shares have resumed trading on AIM after it published documents for its previously announced acquisition of the remaining 80 pct stake in Viso Gero International Inc (VGI).

In December 2007, the diamond exploration company said it signed an agreement to acquire Emperor Gold Mine through a series of acquisitions which constituted a reverse takeover.

The company said it will pay 2.1 mln aud in cash and issue about 478 mln shares at 6 pence each, taking the total purchase price to 29.56 mln stg.

VGI in turn will acquire the remaining 6 pct of Westech Gold Pty Ltd.

Following the acquisitions, River Diamonds will own 100 pct of VGI, and will indirectly, through Westech and its indirect subsidiaries, hold a 100 pct interest in the Emperor Gold Mine.

Colin Orr-Ewing, Chairman of River Diamonds commented, 'The acquisition of the
Vatukuola Mine provides River Diamonds with the opportunity to bring this
historic gold mine back to profitability at a time of high prevailing gold
prices. We believe this will bring benefits not only to River Diamonds'
shareholders, but also to the Fijian Government, the employees at the mine and
the people of Fiji.'

With gold at an all time record high of around $1,000 an ounce, this stock must be a licence to print money! Or am i missing something.
Good luck all.

Mt
I agree still holding.

Are all trades being routed to dealers today, as I find it hard to believe the weight of selling against purchases. Come the end of the day I wonder if this trend will suddenly be reversed, as I have seen similar tactics employed by mm's before, in only reporting what they want to give a false impression.

I think this is the something i may have missed! Holding off for now.

http://www.fijitimes.com/print.aspx?id=83871

This is starting to look cheap gold prices could go to $1500 there's plenty of Gold in that there mine.

http://www.riverdiamonds.co.uk/

Some big buyers coming in 1m+ should now see a steady rise up to the 6p placing price and beyond.

Another big buy at the end 6m 250000