TSX.V Symbol (DMI)
KELOWNA, BC,
Aug. 6, 2013 /PRNewswire/ -
Diamcor Mining Inc. (TSX-V.DMI), (the "Company") an emerging
producer of rough diamonds, announces that the installation of the
main power line to the Company's Krone-Endora at Venetia Project
(the "Project") has now been completed. The 8.4 km main power
supply line, constructed by State electricity supplier Eskom, is
the final key infrastructure requirement for the Project and is
expected to provide immediate operational cost savings and reduced
downtime when compared to the diesel generators currently being
used at the Project. The Company has also installed an
additional 0.7 km power line to support the in-field screening
plant. With these power lines now complete, the existing
diesel generators at both the main plant and the in-field screening
plant will remain in place to provide the Project with added
benefit of standby power.
In addition, the Company has recovered four
additional "Special" diamonds in the +10.8 carat category during
the ongoing testing and commissioning work being performed at the
Project. The four additional Specials recovered were 12.82
carat, 17.75 carat, 20.48 carat, and 48.26 carat stones. The
Company previously announced on May 28,
2013, the recovery of the first Special diamond, an 11.23
carat, during initial testing of material in the +1.0mm to -10.0mm
size fraction, and then on July 11,
2013, the recovery of two additional Specials, 13.38, and
15.16 carat diamonds during the early processing of material in the
+12.0mm to -28.0mm size fraction. With the recovery of these
latest Specials the Company has now recovered seven individual
diamonds over 10.8 carats in size during the initial testing and
commissioning exercises underway with only limited tonnage having
been processed. Individual diamonds of further note recovered
during the month of July include: 9.55 carat; 8.71 carat; 7.69
carat; 7.55 carat; 7.13 carat; 6.50 carat; 5.72 carat; and 5.36
carat stones. The installation of a crushing circuit at the
main plant is now underway, and once operational is expected to
further increase the effective processing of larger size fractions,
thus providing additional opportunity for the recoveries of larger
diamonds.
"The installation of the main power line to
the Project marks the successful completion of the final
infrastructure item for the Project, and one that will provide
immediate benefits to operating cost and reliability",
commented Mr. Dean Taylor, President
and Chief Executive Officer of Diamcor. "The continued recovery
of larger diamonds also provides us with yet further confirmation
of the Project's ability to produce large diamonds, and while their
quality does vary like all production, the frequency with which
they are being recovered certainly is indicative of the potential
for high quality / high dollar value diamonds to be recovered more
often", added Mr. Taylor.
To date, the Company has recovered and tendered
a total of 6,702.90 carats of diamonds for total gross proceeds of
(US) $926,324.03 from the initial
testing and commissioning exercises underway at the Project.
As of July 31, 2013 the Company had
also delivered 3,460 carats of diamonds for tender and sale in the
coming weeks.
The Company also reports that it has granted
incentive stock options ("Options") to purchase an aggregate
1,550,000 common shares ("Shares") to certain officers, directors,
employees, and consultants pursuant to the Company's stock option
plan. All Options are exercisable at a price of $1.25 per share, for a period of five years
expiring on August 6, 2018. No Shares
acquired upon exercise of the Options may be traded prior to
December 7, 2013. With the issuance
of these Options the Company now has Options issued to purchase an
aggregate of 5,548,333 shares.
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 and
Geoscientists 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.
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of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Diamcor Mining Inc.
