TSX.V Symbol (DMI)
KELOWNA, BC, Dec. 4, 2014 /PRNewswire/ - Diamcor Mining
Inc. (TSX-V.DMI / OTCQX-DMIFF), (the "Company") achieved a
significant milestone during its second fiscal quarter ended
September 30, 2014: a full Mining
Right from the South African Department of Minerals and Resources
was granted in respect of the Company's Krone-Endora at Venetia
project (the "Project").
The Mining Right has a 30 year term and grants the Company,
subject to customary terms and conditions, the sole and exclusive
right to mine and recover minerals on the mining area encompassing
657.71 hectares within the Project's total area of 5,888 hectares.
The Project is located directly adjacent to De Beers' flagship
Venetia Diamond Mine in South
Africa, and the associated deposits have been identified as
being the result of the direct-shift and erosion of material from
the higher grounds of the adjacent Venetia Kimberlite areas. The
near surface nature of the deposits provide the potential for a
low-cost mining operation with near-term diamond production from a
known high-quality diamond source. An additional application for a
Mining Right over the remaining areas of the Project has also been
submitted by the Company. To date, the Company has financed,
developed and completed the design, construction and installation
of extensive infrastructure at the Project to support the Project's
advancement. During the current fiscal quarter, preparations
continued in connection with updating the Company's initial
NI43-101 technical report. Once filed, the updated report is
expected to reflect the nature and extent of the infrastructure
development achieved at the Project, as well as other relevant data
available to this point. The Company plans to complete trial mining
exercises, and additional bulk sampling and exploration exercises,
on various areas including those areas surrounding the current
areas of focus, and the results of these exercises will be
incorporated into subsequent NI43-101 report(s) and will be used to
assist the Company in arriving at final production decisions for
the Project.
For the fiscal quarter ended September
30, 2014, the Company sold 3,449.32 carats of rough diamonds
generating gross revenues of $609,058, net of commissions and fees, for an
average price of US $168 per carat.
The Company recovered an additional 1,534 carats during the quarter
which were held in inventory at the end of the fiscal
quarter.
During the fiscal quarter ended September
30, 2014, the Company incurred operating expenses of
$239,339, a 62% reduction when
compared to $637,675, realized in the
same period during the prior fiscal year. Operating expenses are
primarily management, contracted labour, equipment, utilities,
fuel, and other expenses incurred at the Project. The significant
reduction in operating expenses is primarily attributable to
reduced labour, contracted equipment and fuel requirements in the
current quarter, as compared to the same period during the previous
fiscal year due to infrastructure expansions to the Company's dry
screening and treatment plants during the current fiscal year which
have resulted in the automation of several processes that were
previously manual. The Company realized net income from operating
activities of $369,719 during the
quarter ended September 30, 2014.
Total general and administrative expenses for the fiscal quarter
ended September 30, 2014 were
$785,808, as compared to $2,928,259 realized in the same period during the
prior fiscal year. The significant reduction in general and
administrative expenses is primarily attributable to the
recognition of stock based compensation expenses of $2,170,000 realized in the same period during the
prior fiscal year ended September 30,
2013. There were no stock based compensation expenses in the
current fiscal quarter ended September 30,
2014. General and administrative expenses during the fiscal
quarter included accretion and depreciation expenses of
$228,401, and interest and bank
charges of $171,277 which primarily
relate to the Company's financings with Tiffany & Co.
For the fiscal quarter ended September
30, 2014, the Company incurred a net loss before income tax
of $409,896 or $0.01/share, as compared to a net loss before
income tax of $2,476,662, or
$0.07/share, realized in the same
period during the prior fiscal year ended September 30, 2013. Net cash flow
used in operating activities for the recent fiscal quarter was
$132,917.
The recovery of all rough diamonds during the fiscal quarter
ended September 30, 2014, was
incidental to the ongoing commissioning and testing exercises
performed at the Company's Krone-Endora at Venetia project. The
above-noted testing exercises and incidental recoveries do not form
part of the initial NI43-101 Technical Report filed by the Company
on July 30, 2009, and thus no general
grade, price, or quality determination is intended by the Company
at this time due to the nature and purpose of the processing of
this material.
The Company's complete financial results and associated
Management Discussion and Analysis for its second fiscal quarter
ended September 30, 2014, can be
accessed at www.sedar.com, or on the Company's website at
www.diamcormining.com.
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 prior experience
supplying rough diamonds to the world market.
About the Tiffany & Co. Alliance
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
financing to advance the Project. Tiffany & Co. is a publically
traded company which is listed on the New York Stock Exchange under
the symbol TIF. For additional information on Tiffany & Co.,
please visit their website at www.tiffany.com.
About Krone-Endora at Venetia
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 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 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 in place due to its location directly
adjacent to the Venetia Mine.
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.
