KELOWNA, May 28, 2013 – Diamcor Mining Inc.
(TSX-V.DMI), (the “Company”) an emerging producer of rough
diamonds, has recovered the first “special” diamond in the +10.8
carat category from its Krone-Endora at Venetia Project (the
“Project”). The
recovery of the very good quality 11.23 carat diamond occurred
during recent processing of material in the +1.0mm to -12.0mm size
fraction through the previously announced expanded quarrying and
in-field screening operations at the Project. In addition to the recovery of
the first diamond in the “special” category, a total of
approximately 2,464 carats have also been recovered from the
limited processing completed, with the largest non-special diamond
being recorded at 8.66 carats in size.
“The recovery of a diamond of this size and quality
further confirms the potential of the Project to produce large
quality diamonds”, commented Mr. Dean Taylor, president and chief
executive officer of Diamcor, “to have it occur so quickly based on
the limited processing of material mainly up to 12.0mm in size is
also very promising”, commented Mr. Dean Taylor
As was
widely reported, the region experienced very heavy rainfall
throughout the first quarter of 2013. These unusual rain levels had not
been recorded in the area for over 200 years. In addition to flood
damage to roads, fences, and properties in the area, including
Krone-Endora, the excessive rains have proved challenging for
mining operations, resulting in the delays and in some cases the
suspension of normal mining operations. At the Krone-Endora mine site,
stockpiles of larger material in the +12.0mm size fractions
targeted for processing in the first quarter could not be processed
effectively through the in-quarry dry-screening plant, and the
processing of other size material was also greatly limited due to
these rains.
“While the significant rains delayed our efforts to
advance the Project as quickly as desired and limited our ability
to process material at levels targeted in the short-term,
operations are now returning to normal”, noted Mr. Taylor. “We’re now focusing on ramping up
operations and are excited about the prospect of processing larger
size material”.
As
previously announced on March 13, 2013, the Company successfully
completed the desired procurement, delivery, construction, and
installation of the vast majority of equipment and infrastructure
required to significantly expand the quarrying and in-field
dry-screening operations at the Project. These upgrades were part of the
Company’s final preparations in anticipation of a planned move to
24/7 operations in the near future, and were completed as budgeted
through the previously announced $4.0 million in additional
financing from its long-term strategic alliance partner Tiffany
& Co. Canada, a subsidiary of world famous New York based
Tiffany & Co. The
expanded quarrying and in-field screening operations are designed
to provide significant operational cost savings and efficiencies
over the long-term of the Project through the removal of an
estimated 60-65% of fine material (-1.0mm in size) at the quarry
through a dry-screening process. Production capacities of the
expanded facilities are designed to exceed those of the main
processing plant to allow for the stockpiling of treated and
screened materials at the main processing plant. With the fine material removed,
screened material stockpiled at the plant would not be affected by
rains in the future.
The delays caused by the unusual rains in the first quarter of 2013
were a result of unfortunate timing, in that material recovered
from quarry was not able to be processed through the expanded
in-field dry-screening operations prior to being saturated by the
rains, thus no stockpile of previously screened material was
available at the main plant for processing as would be expected
under normal operations.
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, extensive experience supplying rough diamonds to the world
market, and has established a long-term strategic alliance with
world famous Tiffany & Co. Rather than exposing itself to
the high risks and costs associated with exploration, the Company’s
focus is on the identification, acquisition, and operation of
unique diamond projects with near-term production potential such as
the Krone-Endora at Venetia Project. For additional information on
Diamcor, please visit our website at www.diamcormining.com.
About the Tiffany & Co. Alliance
As announced on March 29, 2011, 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 substantial financing to advance the
Project as quickly as possible. Tiffany & Co. is a publically
traded company which is listed on the New York Stock Exchange under
the symbol TIF.
Founded in 1837, the Tiffany name is now globally recognised as one
of the premier luxury jewellery and specialty retailers in the
world. Through Tiffany & Co. and various other subsidiaries,
the company is engaged in product design, manufacturing, and
retailing activities on a global basis. As of January 2013, Tiffany &
Co. operated 275 stores and boutiques in the Americas, Japan,
Asia-Pacific, Europe and the United Arab Emirates, and also engages
in direct selling through internet, catalog and business gift
operations. 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. De Beers previously completed various
exploration efforts on initial areas of interest comprised of
approximately 307 hectares, a summary of which was reported in an
initial Independent NI 43-101 Technical Report filed by the Company
on July 30, 2009. The deposits which occur on the properties of
Krone and Endora have been identified as a rare, 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 an estimated combined
1,000 m (1 km) 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. Since acquiring
Krone-Endora the Company has completed the construction and
installation of extensive infrastructure at the Project, along with
the installation of a purpose built modular processing plant, and
extensive quarrying and in-field screening operations. Commissioning of the processing
plant is now complete, and the Company’s current efforts are
designed to be a continuation of the ongoing advancement of the
Project, and as part of the Company’s final preparations in
anticipation of a planned move to 24/7 operations in the near
future.
Qualified
Person Statement:
Mr. James P. Hawkins (BSc., 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, Geologists, and Geophysicists 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
Tel (250)
864-3326
www.diamcormining.com
Investor
Relations Contact:
Justin
Vaicek
Liolios
Group, Inc.
DMI@liolios.com
Tel (949) 574-3860
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.
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