Diamcor Completes Expansion Upgrades at Krone-Endora at Venetia
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TSX.V Symbol (DMI)
KELOWNA, BC, March 13, 2013 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI) (the "Company") is pleased to announce it has successfully completed the procurement, delivery, construction, and installation of the vast majority of equipment and infrastructure required to significantly expand the quarrying and in-field screening operations at the Company's Krone-Endora at Venetia Project (the "Project" or "Krone-Endora"). 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 envisioned in the previously announced $4.0 million in additional financing from its long-term strategic alliance partner, world famous premier luxury jewellery and specialty retailer Tiffany & Co. ("Tiffany"), late in 2012. As part of the initial commissioning and testing exercises performed at the Project prior to the financing, Company executives in conjunction with various equipment manufacturers and engineering firms had continuously evaluated the treatment of various size fractions of material from the deposit, the quarrying and in-field screening equipment capacities and efficiencies, and performed additional material testing using various new pieces of equipment. The development of the semi-mobile in-field screening plant recently constructed and installed at the Project is aimed at significantly enhancing and increasing overall processing capacities and operating efficiencies in the long-term.
"I am very pleased with the commitment of our entire team who have again demonstrated their abilities by completing these significant upgrades in a very short period of time, despite dealing with the record rains and flooding which have been widely reported in the area throughout most of January" commented Diamcor President and Chief Executive Officer, Mr. Dean H. Taylor, "We are confident this additional equipment and infrastructure will further enhance overall results which have already been meeting or exceeding our expectations, and we are excited as these new upgrades will now enable us to now begin processing the larger +10mm material", added Mr. Taylor.
The Company's previously announced initial tender and sale of 3,579.58 carats of rough diamonds for $142.71(US) per carat on average were recovered in conjunction with the ongoing testing and commissioning exercises at the Project, with the vast majority being from the recovery, screening, and processing of material only in the +1.0mm to -10mm size fractions of the lower-grade surface to 10 meter depths of the K1 area of the Project. Despite the fact no material above 10mm in size had yet been processed by the Company, 362 individual rough diamonds with a combined weight of 659.33 carats were recorded at 1.0 carat in size or larger. With the new expanded and upgraded in-field screening systems complete, the Company will now begin testing and processing all materials, including the +10mm material from the Project.
Expanded Quarrying and In-Field Screening Overview:
The in-field dry-scrubbing and screening additions and modifications to the Project's quarrying operations included the following:
-- The installation of a large mobile barrel screen and feed bid, with a throughput capacity of up to 800 tons per hour, will allow material to be dumped directly from mining trucks into the system without additional handling. This barrel screen is expected to greatly enhance the liberation of diamonds from all materials. -- The modification of the Company's Terex H6302 power-screen to maximize throughput capacities and enable the classification of material in conjunction with the new equipment added to the in-field screening process. -- The installation of a rotary dry-scrubbing unit to better liberate material in the -28mm to +5mm size fractions. -- The construction of a large, three story support structure, and installation of a new high capacity Dabmar Bivitec non-blinding double-deck screening unit to provide increased capacities and efficiencies in the removal of -1.2mm fines material. The Dabmar screening systems represent the latest in screening technology, and the Company believes it is the best screening system available for the desired dry-screening application required at the Project. -- The purchase and commissioning of an additional 500 kVa diesel generator to power the in-field screening plant and construction of the associated skid mounted enclosure and power distribution panels. -- The construction and installation of several large conveyor systems for the transport of materials between the various in-field screening plant components. -- The purchase and deployment of several new pieces of Volvo heavy equipment from Babcock South Africa to support the expanded operations and serve the needs of the Project over the long-term. Project Status Overview: The extensive planning, development, and construction of site infrastructure at Krone-Endora was successfully completed over a period of less than 24 months and positioned the Company with the rare ability to now further advance the development of the Project and pursue near-term production. Following the completion of the final commissioning and testing exercises, the Company plans to focus on achieving targeted staged monthly operational increases through a move to trial mining to provide the Company with production and cash flow. The Company anticipates that the move to full scale mining will coincide with the confirmation by the South African Department of Mineral Resources of the issuance of a mining right which has been applied for and is currently in process. In conjunction with the full scale mining exercises, the Company also plans to carry out a bulk sampling programme on new areas of the Project not previously accounted for in the initial NI 43-101 Technical Report filed by the Company as part of the acquisition process. These efforts are designed to support the future filing of an updated NI 43-101 Technical Report, and to assist Management when developing long-term production targets and decisions for the Project. Strategic Tiffany & Co. Alliance: As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with world famous New York based Tiffany & Co. to purchase up to 100% of the future production of rough diamonds (excluding Specials, individual stones of 10.8 carats or greater) from the Krone-Endora at Venetia Project at current market prices to be determined by the parties on an ongoing basis. In conjunction with this right of first refusal, Tiffany & Co. also provided the Company with substantial financing to advance the Project as quickly as possible. This right of first refusal was modified in conjunction with the additional $4.0 Million financing from Tiffany & Co. announced on November 16, 2012 such that the Company may sell for its own account the standard assortments derived from the first three shipments of diamonds produced from the Project, subject to certain conditions. This initial tender and sale of 3,579.58 carats fell within this modified right of first refusal arrangement. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF. Originally founded in 1837, the Tiffany's 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 July 31, 2012 Tiffany & Co. operated 260 stores and boutiques in the Americas, Japan, Asia-Pacific, and Europe and 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: On February 28, 2011, Diamcor successfully 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. 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. 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 experience supplying rough diamonds to the world market. 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. 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 Phone: (250) 864-3326 Website: 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. This news release is not for dissemination in the United States, to "U.S. Persons" or to United States of America news services. 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. Mr. Dean H. Taylor President & CEO Diamcor Mining Inc. DTaylor@diamcormining.com Phone: (250) 864-3326 Website: www.diamcormining.com SOURCE: Diamcor Mining Inc. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2013/13/c4572.html CO: Diamcor Mining Inc. ST: British Columbia NI: MNG NASDAQ FIELD ORDER -0- Mar/13/2013 13:00 GMT