Diamcor Recovers First "Special" Diamond at Krone-Endora at Venetia
TSX.V Symbol (DMI)
KELOWNA, BC, May 28, 2013 /CNW/ - 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
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
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.
Investor Relations Contact: Justin Vaicek Liolios Group, Inc. DMI@liolios.com
Tel (949) 574-3860
SOURCE: Diamcor Mining Inc.
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CO: Diamcor Mining Inc.
ST: British Columbia
NI: MNG FIELD
-0- May/28/2013 12:31 GMT
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