TSX.V Symbol (DMI) / OTCQX Symbol (DMIFF)
KELOWNA, BC, Sept. 6, 2012 /PRNewswire/ - Diamcor Mining
Inc. (TSX-V.DMI / OTCQX-DMIFF) (the "Company") is pleased to
provide an update on the ongoing commissioning and testing
exercises underway at the Company's Krone-Endora at Venetia Project
(the "Project"). As previously announced, these commissioning
and testing exercises are designed to (i) evaluate operational
efficiencies of the in-quarry screening equipment (ii) assess
processing capacities and recovery parameters for the modular
processing plant, and (iii) assist the Company in determining
modifications required, if any, to enhance Project
efficiencies/recoveries for the long-term. The exercises are
also aimed at securing a suitable quantity of rough diamonds for
preliminary sorting by the Company and its strategic alliance
partner Tiffany & Co which should assist both parties'
operational planning and to provide the primary data necessary for
the establishment of a new and current average dollar per carat
estimate for the Project's rough diamonds.
Rough Diamond Recoveries Update
Recoveries of rough diamonds from initial
testing and commissioning exercises are a result of the combined
processing of the concentrate material secured as part of the
acquisition of the Project from De Beers Consolidated Mines Limited
and the processing of new material in the +1mm to -10mm size
fraction which has been screened from the lower-grade surface to 7
meter depth of the K1 area of the Project. As of August 31, 2012, the Company had processed
through the modular plant approximately 7,831 total tons of
screened material. As a result, the Company has recovered
several thousand individual diamonds with a total combined weight,
before acidizing, of approximately 1,214.86 carats. Of
particular note, 85 individual rough diamonds with a combined
weight of 154.30 carats have been recorded at 1.0 carat in size or
larger. Below is a general summary of the rough diamonds of
1.0 carat or larger which have been recovered to date:
- 66 diamonds (total 88.29 carats) were between 1 and 2 carats in
size
- 10 diamonds (total 24.47 carats) were between 2 and 3 carats in
size
- 5 diamonds (total 18.47 carats) were between 3 and 4 carats in
size
- 3 diamonds (total 13.24 carats) were between 4 and 5 carats in
size
- 1 diamond of 9.83 carats was recovered
The Company is very encouraged by the
quantities, size frequency distribution and initial quality
assessment of the rough diamonds recovered during the commissioning
phase to date given that the vast majority of the new material
processed has been from the lower-grade upper areas of the Project
which are being targeted for future mining. While these
initial results are currently meeting or exceeding Company
expectations, it should be noted that these testing recoveries do
not form part of the initial NI43-101 Technical report filed by the
Company on July 30, 2009, and no
grade or quality determination is intended by the Company due to
the nature and purpose of the processing of this material.
As noted above, the vast majority of material
processed during testing and commissioning exercises to date have
been only from the +1mm to -10mm size fraction, with all additional
material in the +10mm to -28mm size fraction, and +28mm size
fraction currently being stockpiled for later treatment. This
material over 10mm in size consists of lightly calcretized or
cemented material, as well as larger aggregate, which will require
additional treatment in order to effectively liberate any rough
diamonds contained in this material prior to processing. An
overview of the Company's planned implementation of dry-scrubbing
to enhance the recoveries from this material is explained in
further detail in the quarrying and in-field screening update
below.
Over the coming weeks, the testing and
commissioning exercises will focus on the processing of material
from the higher-grade lower depths of the K1 area of the
Project. These exercises will test the processing plant's
capabilities with these materials and will allow the Company to
secure a proper representation of rough diamonds from these
higher-grade lower gravels prior to the planned preliminary sorting
and evaluation exercises.
Quarrying / In-field Screening Update
As part of the testing and commissioning
exercises, the Company has performed preliminary reviews on the
operational efficiencies of both the heavy equipment and the
screening equipment deployed in the Project's quarry.
The quarrying operations are conducted through
the use of various pieces of heavy equipment designed to extract
material for screening and size classification prior to their
transportation to the processing plant. Heavy equipment being
used for quarrying currently consists of two Cat 966 front end
loaders (one of which is utilized at the processing plant) with
bucket capacities of approximately 4.0 cubic meters each, two
tracked excavators in the 23 to 33 ton range, and four hard axle
trucks with capacities of 10 cubic meters per load. During
the testing and commissioning exercises to date, equipment
capacities, cycle times and efficiencies are all meeting the
Company's expectations. The Company believes that no
additional heavy equipment will be required in the short-term to
meet its initial targets.
Due to the high percentage of fine material
identified in the deposit, the Company determined that the
implementation of a mobile screening unit could enhance the
Project's overall operational efficiencies, reduce operational
costs per ton, and provide the added benefit of lowering the
overall water consumption associated with final processing.
In an effort to achieve these desired objectives, the Company
announced that it had taken delivery of a Terex H6203
Powerscreen. The use of this equipment was aimed at
dry-screening material in-field, with the desired operational
objective of reducing the quantity of material to be hauled for
processing by approximately 45% through the removal of very fine
material under 1mm in size. The material in this -1mm size
fraction is considered by the Company to be either non-diamond
bearing or to contain only very low quantities of lesser value
diamonds, and thus the Company considers the potential operational
benefits to be significant.
Material processed through the Powerscreen is
currently separated and categorized into four size fractions.
Material under 1mm in size (targeted for removal), material between
1mm and 10mm in size, material between 10mm and 28mm in size, and
oversized material greater than 28mm in size. During the initial
testing and commissioning exercises performed to date, the
screening unit has consistently demonstrated its ability to achieve
the desired operational target of reducing material by 45% after a
single pass through the unit. While the Company is pleased
with the overall operation of the screening process, it also
believes that it will be possible to achieve yet greater
efficiencies in the removal of additional fine material in-field
through the implementation of dry-scrubbing and additional
screening equipment. To test this assumption, material was
subjected to two passes through the Powerscreen unit, with the
result being a further reduction in fine material of approximately
15-20%. The Company believes that this additional reduction in fine
material is simply a result of the further breaking down of
material due to handling. Therefore in order to enhance the overall
in-field treatment of materials, and thus plant processing
efficiency in the future, the Company plans to incorporate a
dry-scrubbing process and additional screening into the initial
treatment phase of all material at the quarry. This equipment
will be aimed at better liberating all material prior to screening
in order to enable the Powerscreen to operate more efficiently,
enhance the overall production process, reduce costs, and possibly
increase the recoverable grade through the processing plant in the
long-term. Until such time as the dry-scrubbing equipment can
be procured and installed, the Company will continue to stockpile
all material over 10mm in size for later treatment.
Processing Plant Update
As part of the testing and commissioning
performed to date on the processing plant, screened material was
transported for processing through the plant's 16' bulk material
reduction pans before reporting to a Dense Media Separation (DMS)
plant and x-ray final recovery units, after which the final
concentrate was passed over a secondary grease table. Testing
on the operational efficiencies of both the pre-concentrating pans,
and the DMS plant, have progressed as expected, with their
operation meeting the Company's expectations. Evaluations on
the modular plant's capabilities and its ability to support the
Company's initial targeted production ramp of up to 10,000 carats
per month within 12 months are also in line with Company
expectations. The Company believes the implementation of
dry-scrubbing and additional in-field screening will lead to the
further removal of fine materials, thus allowing the existing
processing plant to support increased production capacity over the
long-term. The Company is also evaluating the merits of
adding a crushing circuit and a third bulk material reduction pan;
however, final decisions on the addition of these items will only
be made once the implementation of the in-field dry-scrubbing and
screening equipment is completed. The Company has made
provisions during the planning, design and construction of the
processing plant for these items to be easily added should they be
warranted.
In addition to the evaluation of the pans and
DMS plant, testing and evaluation exercises on the Project's
containerized x-ray flow-sort final recovery units and secondary
grease systems have also been completed. These units are
meeting the Company's expectations and no modifications should be
required in order to meet the Company's initial production
targets.
Project Status Overview:
The extensive planning, development and
construction of site infrastructure at Krone-Endora was
successfully completed over a period of less than 18 months, which
has positioned the Company to now further advance the development
of the Project and pursue near-term production. Following the
completion of the above-mentioned commissioning and testing
exercises, the Company plans to focus on achieving targeted staged
monthly operational increases through a move to trial mining in
order to provide the Company with near-term 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 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. 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 April 30, 2012
Tiffany & Co. operated 251 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 underway, 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
("APEGGA"). 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.
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)
SOURCE Diamcor Mining Inc.
