TSX.V Symbol (DMI)
KELOWNA, BC,
Feb. 11, 2014 /PRNewswire/ -
Diamcor Mining Inc. (TSX-V.DMI), (the "Company") announces
that as a result of a review by the British Columbia Securities
Commission ("BCSC"), it is issuing this news release to clarify its
disclosure regarding the following issues. The Company was
selected for review as part of the BCSC's ongoing program to
improve the quality of disclosure provided to investors.
Technical Disclosure Matters
The Company's news release dated October 11, 2011 referred to an increase in the
tonnage quantity attributable to identified gravel material on the
Company's Krone-Endora at Venetia Project ("Krone-Endora" or the
"Project"), including an increase of 97.5% in the tonnage estimate
attributable to the Basal Zone gravels over the Basal Zone tonnage
estimate in the Company's initial technical report filed on
July 30, 2009 (the "2009 Report")
under National Instrument 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43-101"). The drilling data used by the
Independent Qualified Person to estimate new tonnage quantities did
not include data pertaining to grade and quality as the drilling
programme was only intended to identify the location, extent and
thickness of the Upper Zone and Basal Zone gravels within the areas
previously explored by DeBeers as well as within additional
surrounding areas (the "Additional Areas") and was not intended to
identify grade or mineral resources relating to the areas
drilled. The most recent resource estimate in respect of the
Project remains the inferred mineral resource estimate of 1,314,000
carats contained within 54,258,600 tonnes set forth in the 2009
Report. NI 43-101 restricts disclosure of quantities that are not a
mineral resource, and the company retracts tonnage quantities at
the Krone-Endora project in excess of those supported by the 2009
Report.
The Company wishes to restate its disclosure
with respect to the Additional Areas to clarify that the Additional
Areas represent an additional exploration target covering
approximately 200-230 hectares of surface area. The
exploration target is conceptual in nature and there has been
insufficient exploration to estimate ranges of tonnage and grade.
The Company's prior disclosure concerning the Additional Areas was
not intended to imply any increase to the mineral resource
estimates or contained diamond quantities for the Project beyond
the disclosure contained in the 2009 Report and it is uncertain
whether additional exploration efforts will result in the
Additional Areas being delineated as a mineral resource. As
stated in the Company's news release of October 11, 2011, the grade values reported in
the 2009 Report in respect of the areas previously explored by
DeBeers cannot be applied to the Additional Areas as any grade
values for these Additional Areas can only be established after the
Company completes a recommended bulk sampling programme in respect
of those Additional Areas.
The Company also wishes to clarify that it has
not, to date, conducted a preliminary economic assessment (PEA) or
mining study in respect of the Project nor has it made any
production decisions concerning the Project. The decision to
construct the current plant and facility for the Project, as
described in the Company's news release dated January 17, 2012 and elsewhere, is a function of
the recommended bulk sampling and trial mining work described in
the 2009 Report. The objectives of the Company's
construction, testing, bulk sampling and trial mining activities to
date have been undertaken with reference to the Placer Deposits
Estimations Guidelines published by the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM)
(http://web.cim.org/UserFiles/File/Placer-Deposits-Guidelines.pdf)
which includes guidelines for Alluvial Diamond Deposits, including
the following:
- to confirm the results obtained from the exploration sampling
and gravel resource estimates;
- to determine diamond sizes and grades for the different types
of gravel deposits (if appropriate);
- to determine the mining parameters for the different types of
gravel deposits (e.g. in-situ bulk density, clay content,
etc.);
- to test and refine the proposed mining/processing methods for
the different types of gravel present; and
- to obtain a parcel of diamonds of sufficient size to allow for
the determination of diamond size frequency distribution, valuation
and modelled value analyses of the alluvial deposit.
The Company notes that the CIM guidelines also
recommends that the minimum bulk sample size should be designed
such that a minimum of 3000 carats of diamonds are recovered for
grade and valuation purposes and to obtain a representative sample
from each of the main gravel types if more than one type is
present, as is the case with the Project. The CIM guidelines
also state that gravel samples should be processed in the same
manner as to be used in the process plant that would be used in a
full scale operation. The Company is pleased with the
progress it has made to date in pursuing the objectives of the
recommended bulk sampling and trial mining activities, but these
activities are not yet complete. In particular, the Company's
efforts to retrieve sufficiently large representative bulk samples
from each of the main gravel types identified on the Project are
on-going and have not yet been completed. The Company's focus
has been to construct the infrastructure and facilities necessary
to process sufficient representative bulk samples from each of the
main gravel types present on the Project in the same manner as
would be used in a full scale operation. To date, the Company
has completed most of the necessary infrastructure and facilities,
including the testing and commissioning of the processing plant,
and is currently engaged in testing different processing procedures
in order to optimize the procedures and operations that will be
used to complete the bulk sampling of each of the main gravel types
present. In the course of completing the testing, commissioning and
optimization exercises, the Company has processed a variety of
material which is not of a sufficient size to constitute a
representative sample from any one of the existing main gravel
types, as contemplated by the CIM Guidelines, and all diamond
recoveries that have occurred to date have been incidental to these
testing, commissioning and optimization exercises. The
Company's strategy has been to complete the necessary
infrastructure and facilities to enable it to carry out the
recommended bulk sampling and trial mining exercises on each of the
main gravel types and to use the collected data to support the
preparation and filing of an updated NI 43-101 Technical Report and
an ultimate production decision.
In its news releases of January 17, 2012, June 20,
2012 and elsewhere, the Company indicates that the design of
its modular plant for the Project is aimed at supporting an initial
targeted ramp of up to 10,000 carats per month within 12
months. These references relate to the previously described
bulk sampling and trial mining exercises and are not intended to
indicate that the Company has made a decision to enter into full
scale mining operations. Any decision to enter into full
scale mining operations would be made after the completion and
assessment of the bulk sampling and trial mining exercises on the
areas comprising the mineral resource estimate contained in the
2009 Report and, as noted in the Company's news releases dated
November 27, 2012, after confirmation
by the South African Department of Mineral Resources of the
issuance of a mining right.
In the Company's news release of May 2, 2013 and elsewhere, reference is made to
the Company being an emerging producer of diamonds. This
reference refers to the Company's historical production,
principally from its former So Ver project, and to the limited
recoveries and sales of diamonds obtained from, an incidental to,
its ongoing testing, bulking sampling and trial mining activities
at Krone-Endora. The reference is not intended to suggest
that the Company is an established diamond producer with consistent
production based on full scale mining operations at the Project.
Similarly, in its news release of March 13,
2013 and elsewhere, reference is made to certain upgrades to
the equipment and infrastructure for the quarrying and in-field
screening operations at the Project in anticipation of a planned
move to 24/7 operations in the near future. This reference
should have included the qualification that the move to full scale
mining operations would be made only after the completion and
assessment of the bulk sampling and trial mining exercises on the
areas comprising the mineral resource estimate contained in the
2009 Report and after confirmation by the South African Department
of Mineral Resources of the issuance of a mining right. The Company
wishes to emphasize that to the extent that any past or future
processing of gravel material at the Project, and any associated
incidental recovery of diamonds, can be viewed as production from
mining activities, then unless and until the Company completes a
formal economic analysis, such as a pre-feasibility study or a
feasibility study, in accordance with NI 43-101, such production
must viewed as proceeding in the absence of any formal economic
analysis of any mineral reserves demonstrating economic and
technical viability. Consequently, there can be no assurance that
such mining activities will prove to be economically viable or
sustainable and the associated risks of technical or
financial failure may be significantly higher.
Further to the foregoing, the Company wishes to
clarify all references in its continuous disclosure materials,
including the Company's Management Discussion & Analysis for
the period ended September 30, 2013
and elsewhere, to operations, operational history, life of mine,
production targets, production growth and similar production or
operational related references with respect to the Project are not
intended to suggest that the Company is an established diamond
producer with consistent production based on full scale mining
operations at the Project, that any decision has been made to
engage in full scale mining operations at the Project or that the
Project has been the subject of any economic analysis or mining
study.
The term "potential resource" was inadvertently
included in the Krone-Endora Exploration section of the Company's
website. This reference did not comply with the mineral
resource categories required under section 2.2 of NI 43-101.
This reference has been removed or corrected as appropriate.
Independent Analyst Reports
The Company also wishes to caution investors
that the Company has not adopted and does not endorse any
independent analyst reports or the assumptions or conclusions
contained in such reports. Links to several such reports,
namely the report dated December 2,
2013 and prepared by Roth Capital Partners and the reports
and the reports prepare by Fundamental Research Corp. dated
December 4, 2013, August 19, 2013, January
19, 2013, June 4, 2011 and
September 24, 2010, previously
appeared on the Company's website with the following cautionary
language: "Disclaimer: Diamcor Mining Inc. is followed by the
analysts listed above. Please note that any opinions, estimates or
forecasts regarding Diamcor Mining's performance made by these
analysts are theirs alone and do not represent opinions, forecasts
or predictions of Diamcor Mining or its management. Diamcor
Mining does not, by its reference to these analysts or the
dissemination of any information, conclusions or recommendations
provided by those analysts, imply its endorsement of or concurrence
with such information, conclusions or recommendations." The
Company has removed the links to these reports and the Company
wishes to emphasize that any assumptions, conclusions, estimates,
valuations or other forward-looking information contained in these
or any other independent analyst reports and not otherwise
supported by the disclosure contained in the 2009 Report or any
subsequent Technical Report prepared and filed in accordance with
NI 43-101 should be considered speculative and represent the
opinions and conclusions of those analysts and not of the Company
or its management.
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 prior operational and production history in
South Africa, extensive prior
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 traditional 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 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 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 preparations for an ultimate
decision to move from bulk sampling and trial mining exercises to
full scale mining operations.
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
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.
SOURCE Diamcor Mining Inc.
