Shares Issued and Outstanding:
54,659,623
TSXV:DMI
OTCQX:DMIFF
- 2,900.62 carats sold for USD$
810,106.26 in tender completed in April 2017
- 3,265.07 carats sold for USD$
702,635.70 in tender completed in May
2017
- 2,153.13 carats sold for USD$
338,380.59 in tender completed in June 2017
- 8,318.82 carats sold for USD$
1,851,122.55 (USD$222.52
avg/ct) in fiscal Q1
KELOWNA, BC, July 10, 2017 /CNW/ - Diamcor Mining Inc,
(the "Company") announces the results of the rough diamonds
tendered and sold in the Company's first fiscal quarter ending
June 30, 2017. The rough
diamonds recovered, tendered, and sold during the period were from
the processing of material being completed as part of the testing,
commissioning, and calibration work underway on the newly expanded
facilities at the Company's Krone-Endora at Venetia project in
South Africa (the "Project").
On April 10, 2017, the Company
announced an initial tender and sale of 2,900.62 carats of rough
diamonds for gross proceeds of USD $810,106.26, resulting in an average price of USD
$279.29 per carat. In a second
tender and sale completed in May
2017, the Company sold 3,265.07 carats of rough diamonds for
gross proceeds of USD $702,635.70,
resulting in an average price of USD $215.20 per carat. In a third and final
tender and sale for the quarter completed in June 2017, the Company sold 2,153.13 carats of
rough diamonds for gross proceeds of USD $338,380.59, resulting in an average price of USD
$157.16 per carat. This brings
the total rough diamonds tendered and sold from the initial
processing of material through the newly upgraded and expanded
facilities for the quarter ended June 30,
2017 to 8,318.82 carats, generating gross proceeds of USD
$1,851,122.55, and resulting in an
average price of USD $222.52 per
carat.
The first fiscal quarter rough diamond tender and sales of
8,318.82 carats represents a ~38% decrease when compared to the
13,384.72 carats tendered and sold in the Company's first fiscal
quarter ending June 30, 2016.
The reduction was due to limited processing completed as compared
to the same period during the prior fiscal year given the testing,
commissioning, and calibration work being undertaken in the current
year's period. However, despite the 38% decrease in total
carats sold during the current fiscal quarter, the Company achieved
gross revenues of USD $1,851,122.55,
only a 3% decrease when compared to revenues of USD $1,905,978.44, realized during the same period in
the prior fiscal year. The average dollar per carat of USD
$222.52, from the processing of
material in the +1.0mm to -45mm size fractions through the
Project's newly expanded facilities in the first fiscal quarter,
represents a 56% increase as compared to an average dollar per
carat of USD $142.40, for the same
period in the previous fiscal year when the facilities processed
only materials in the +1.0mm to -26mm size fractions. Rough
diamonds delivered, tendered and sold in the current period were
the result of rough diamonds recovered prior to May 25, 2017. Rough diamonds recovered
after May 25 and until June 30, 2017 will be recorded as rough diamond
inventory on-hand for the first fiscal quarter ending June 30, 2017.
Operational Update
The testing, commissioning and calibration of the newly expanded
facilities at the Project continued to progress as planned during
the quarter, and overall increases in processing volumes and
reliability are expected moving forward. The crushing and
treatment of material up to 45.0mm, and the processing of larger
material through a modified and refined ultra-course large diamond
recovery circuit is also now operational and expected to increase
throughput capacity in this area as well moving forward. The
Project's expanded sorting facilities continue to operate as
planned with no major issues to report in that area. The
Company previously reported that efforts were underway to reduce
the total quantity of fines in material being delivered to the Main
Treatment Plant through the addition of a high-frequency screening
unit at the Project's In-field Dry Screening Plant. This equipment
is aimed at not only enhancing the quality and pre-concentration of
the material being delivered to the Main Treatment Plant, but also
is expected to provide additional savings in water consumption and
increased processing capacities. All operational items associated
with this upgrade have now been completed and incorporated into the
processing.
The combined testing, commissioning, and calibration exercises
currently underway are designed to support the continued
advancement of objectives consistent with the recommendations of
the updated NI 43-101 Technical Report ("Updated Technical Report")
filed by the Company on April 28,
2015, and to aid the Company in arriving at initial
production decisions for the Project. The recovery of all
rough diamonds to date are incidental to the ongoing commissioning
and testing exercises performed at the Project. The
above-noted testing exercises and incidental recoveries do not form
part of the Updated Technical Report and therefore no general
grade, price, or quality determination is intended by the Company
at this time due to the nature and purpose of the processing of
this material.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publically traded
junior diamond mining company which is listed on the TSX Venture
Exchange under the symbol V.DMI, and on the OTC QX International
under the symbol DMIFF. The Company has a well-established
operational and production history in South Africa and extensive prior experience
supplying rough diamonds to the world market.
About the Tiffany & Co. Alliance
The Company has established a long-term strategic alliance and
first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous
New York based Tiffany & Co.,
to purchase up to 100% of the future production of rough diamonds
from the Krone-Endora at Venetia Project at then current prices to
be determined by the parties on an ongoing basis. In
conjunction with this first right of refusal, Tiffany & Co.
Canada also provided the Company
with financing to advance the Project. Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF. For additional information on
Tiffany & Co., please visit their website at
www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired
the Krone-Endora at Venetia Project from De Beers Consolidated
Mines Limited, consisting of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in
South Africa. On
September 11, 2014, the Company
announced that the South African Department of Mineral Resources
had granted a Mining Right for the Krone-Endora at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. The
deposits which occur on the properties of Krone and Endora have
been identified as a higher-grade "Alluvial" basal deposit which is
covered by a lower-grade upper "Eluvial" deposit. The deposits are
proposed to be the result of the direct-shift (in respect to the
"Eluvial" deposit) and erosion (in respect to the "Alluvial"
deposit) of material from the higher grounds of the adjacent
Venetia Kimberlite areas. The deposits on Krone-Endora occur in two
layers with an average total depth of less than 15.0 metres from
surface to bedrock, allowing for a very low-cost mining operation
to be employed with the potential for near-term diamond production
from a known high-quality source. Krone-Endora also benefits
from the significant development of infrastructure and services
already in place due to its location directly adjacent to the
Venetia Mine.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc.,
P.Geo.), is Manager of Exploration & Special Projects for
Diamcor Mining Inc., and the Qualified Person in accordance with
National Instrument 43-101 responsible for overseeing the execution
of Diamcor's exploration programmes and a Member of the Association
of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has
reviewed this press release and approved of its contents.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
www.diamcormining.com
This press release contains certain forward-looking
statements. While these forward-looking statements represent
our best current judgement, they are subject to a variety of risks
and uncertainties that are beyond the Company's ability to control
or predict and which could cause actual events or results to differ
materially from those anticipated in such forward-looking
statements. Further, the Company expressly disclaims any
obligation to update any forward looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Diamcor Mining Inc.