Diamcor Completes Expansion Upgrades at Krone-Endora at Venetia

/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO "U.S. 
PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES./ 
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 ofJanuary" 
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.

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CO: Diamcor Mining Inc.
ST: British Columbia
NI: MNG NASDAQ FIELD ORDER 

-0- Mar/13/2013 13:00 GMT


 
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