TSX.V Symbol (DMI)
KELOWNA, BC, Feb. 5, 2015 /PRNewswire/ - Diamcor Mining Inc.
(TSX-V.DMI / OTCQX-DMIFF), (the "Company") announces that
subsequent to the closing of its recently announced $3.13M private placement on December 31, 2014, it has commenced the planned
further expansion of its Krone-Endora at Venetia (the "Project")
mining facilities. To date, the Company has developed and
financed the design, construction and installation of extensive
infrastructure aimed at supporting the continued advancement of the
Project. Due to the nature of the deposit, one of the primary
objectives was the design and development of the Project's in-field
dry-screening plant necessary for the efficient removal of fine
material under 1.0mm in size. As a result of extensive
testing and development, the in-field dry-screening plant now meets
the Company expectations, thus clearing the way for the acquisition
and deployment of infrastructure necessary to effectively treat and
process larger material in the +26.0mm size fractions which, to
date, has been stockpiled. The upgrades underway are also designed
to enhance efficiencies related to all sizes of material.
Additional infrastructure upgrades include the upgrade and
expansion of the Project's X-ray final recovery systems, the
installation of additional processing equipment to enhance the
crushing and liberation of material in the noted larger size
fractions and the deployment of larger heavy equipment. The
Company expects the expansion to be complete with upgrades
implemented in the fiscal quarter commencing April, 2015. In
support of the Company's plans, Tiffany & Co. Canada agreed to one year deferral and loan
extensions, effective December 1,
2014, of all principal and interest payments accruing after
that date pursuant to the terms of its loan and convertible
debenture financings with the Company. Interest will continue
to accrue on the outstanding balances of the financing facilities
during this period. Payments of both principal and interest
will once again commence in January, 2016.
During the Company's third fiscal quarter ended December 31, 2014, preparations also continued in
connection with the updating of 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. Subsequent to the filing of this updated
technical report, and the completion of the above noted upgrades
now underway, the Company plans to complete expanded trial mining
exercises and the processing of material in all size fractions from
deposits in the K1 area of the Project. The results of these
exercises are aimed at providing the Company with more
comprehensive information on all gravels and size fractions of the
deposit, and to assist the Company in arriving at initial
production decisions for the K1 area of the Project. Given
the extensive facilities and operating infrastructure in place at
the Project, the Company will also have the ability to complete
additional exploration, bulk sampling, and the processing of bulk
samples in the future from various areas including those areas
surrounding K1 and the current areas of focus. Once complete,
the results of these exercises will be used to support the planned
subsequent filing of NI43-101 report(s), and to assist the Company
in developing its operational strategy for 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
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
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. On
September 11, 2014, the Company
announced that the South African Department of Mineral Resources
had granted a Mining Right for the Krone-Endora at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. 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.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc.,
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.
