Shares Issued and Outstanding:
49,702,714
TSXV:DMI
OTCQX:DMIFF
KELOWNA, BC, May 18, 2017 /CNW/ - Diamcor Mining Inc., (the
"Company") is pleased to announce the results of its second tender
and sale of rough diamonds from the processing of material in the
+1.0mm to -45.0mm size fractions through the newly expanded
facilities at the Company's Krone-Endora at Venetia Project (the
"Project"). In this second tender of the current
quarter, the Company sold 3,265.07 carats of rough diamonds for
gross proceeds of USD $702,635.70,
resulting in an average price of USD $215.20 per carat. The tender included the
sale of three rough diamonds in the specials category (+10.8
carats): a 12.80 carat, a 12.89 carat gem quality, and a 13.51
carat rough diamond. The Company previously announced on
April 10, 2017, an initial tender and
sale of 2,900.62 carats of rough diamonds from the newly expanded
facilities, which generated gross proceeds of USD $810,106.26, resulting in an average price of USD
$279.29 per carat. That tender
included the sale of four rough diamonds in the specials category
(+10.8 carats), all of which were gem quality: a 12.13 carat,
a 15.46 carat, a 17.97 carat, and a 29.1 carat. This brings
the total rough diamonds tendered and sold from processing through
the newly expanded facilities to 6,165.69 carats, with seven
individual rough diamonds being in the specials category (+10.8
carats), generating gross proceeds of USD $1,512,741.96 and resulting in an average price
of USD $245.35 per carat. The
Company plans to complete a third tender and sale prior to the end
of the current quarter.
"We're very pleased with the results of these initial tenders
and sales of rough diamonds from our newly expanded facilities,
especially at a time when many operators are experiencing lower
than expected results due to continued weakness in rough diamond
prices", noted Diamcor's CEO Mr. Dean
Taylor. "The results are very encouraging, and given they
are from the initial processing of material at a time when the new
components are being calibrated and refined, they certainly point
to the potential benefits that the crushing and treatment of
material up to 45.0mm through these new facilities have when
compared to previous tenders and sales of material processed
through the previous facilities in the +1.0mm to -15.0mm size
fractions", adds Mr.
Taylor.
Operational Update
The testing, commissioning and calibration of the newly expanded
facilities at the Project continued to progress well during the
quarter, with overall increases in processing volumes and
reliability now consistently being achieved. The crushing and
treatment of material up to 45.0mm is also performing well, with no
significant issues or breakage of rough diamonds to report in this
area of the plant. Initial issues with blockages in the
Project's dedicated ultra-course large diamond recovery circuit
were experienced early in the quarter, however modifications and
refinements to that circuit have now been substantially completed
to enhance the operational reliability and increase throughput
capacity in this area moving forward. The Project's newly
expanded sorting facilities are operating as envisioned, with no
major issues to report in that area. While increased
processing capacities and reliabilities are now being achieved,
further efforts are underway to reduce the total quantity of fines
in the current material reporting to the Main Treatment Plant
including the addition of a high-frequency screening unit at the
Project's In-field Dry Screening Plant. This item is aimed at
further enhancing the overall quality and pre-concentration of the
material being delivered to the Main Treatment Plant through the
removal of additional fines, while providing for additional savings
in water consumption and enhancing overall long-term processing
capacities. The screening unit is expected to be completed
and incorporated into the processing circuit prior to the end of
the current quarter.
The combined testing, commissioning, and calibration exercises
currently underway are designed to support the continued
advancement of objectives consistent with the recommendations of
the updated NI 43-101 Technical Report ("Updated Technical Report")
filed by the Company on April 28,
2015, and to aid the Company in arriving at initial
production decisions for the Project. The recovery of all
rough diamonds to date are incidental to the ongoing commissioning
and testing exercises performed at the Project. The
above-noted testing exercises and incidental recoveries do not form
part of the Updated Technical Report and therefore 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.
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 a maximum total depth of approximately 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.
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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.