Diamcor Announces Initial Sale of Rough Diamonds Recovered from Krone-Endora at Venetia
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO "U.S. PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES./
TSX.V Symbol (DMI)
KELOWNA, Nov. 27, 2012 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI) (the "Company") is pleased to announce the initial tender and sale of 3,579.58 carats of rough diamonds for total gross proceeds of $510,829.00 (US), or (US)$142.71 per carat on average, from the Company's Krone-Endora at Venetia Project (the "Project"). The initial rough diamonds sold were recovered in conjunction with the previously announced ongoing testing and commissioning exercises underway, with the vast majority being from the recovery, screening, and processing of material only in the +1.0mm to -10mm size fractions of the lower-grade surface to 10 meter depths of the K1 area of the Project.
Despite the fact no material above 10mm in size has yet been processed by the Company, of the 3,579.58 carats tendered, 362 individual rough diamonds with a combined weight of 659.33 carats were recorded at 1.0 carat in size or larger. Below is a summary of the rough diamonds 1.0 carat or larger tendered and sold:
- 264 diamonds (total 352.82 carats) between 1 and 2 carats in size
- 58 diamonds (total 138.78 carats) between 2 and 3 carats in size
- 23 diamonds (total 81.02 carats) between 3 and 4 carats in size
- 13 diamonds (total 56.09 carats) between 4 and 5 carats in size
- 1 diamond of 5.37 carats
- 1 diamond of 7.37 carats
- 1 diamond of 8.05 carats
- 1 diamond of 9.83 carats
The quantity, size frequency distribution, quality assessment, and initial price achieved by the rough diamonds recovered and sold to date, meet or exceed the Company's expectations. The NI43-101 Technical Report previously filed by the Company on July 30, 2009 identified the upper areas of the deposit as being lower-grade, and provided an estimate of (US)$70.00 per carat on average. It should however be noted that these testing recoveries, and sales, do not form part of the initial NI43-101 Technical Report filed by the Company in July 30, 2009, and thus no grade, price, or quality determination is intended by the Company due to the nature and purpose of the processing of this material.
"The initial tender and sale of rough diamonds and revenue generated from the Krone-Endora at Venetia Project marks yet another important milestone for our Company" commented Diamcor President and Chief Executive Officer, Mr. Dean H. Taylor, "With this important milestone achieved, our focus has already shifted to the recovery and screening of material from the higher-grade, lower areas of the deposit, and the procurement, delivery and installation of additional equipment to enhance overall recoveries and allow for the effective treatment of material in the +10mm size fractions", added Mr. Taylor.
As previously announced on November 16, 2012, the Company secured an additional $4.0M in financing from its long-term strategic alliance partner, world famous premier luxury jewellery and specialty retailer Tiffany & Co. At that time, the Company announced that, as part of the commissioning and testing exercises, various equipment manufacturers and engineering firms had continuously evaluated material from the deposit and the current quarrying and in-field screening equipment and had performed tests on new equipment using material from the Project. The Company believed that the deployment of additional dry-scrubbing and screening equipment would not only more efficiently treat material in the +10mm size fraction, but also further enhance the treatment of all material and provide operational efficiencies and enhance recoveries over the long-term. In line with these objectives, the Company is proceeding with the procurement and delivery of various pieces of additional dry-scrubbing and screening equipment, associated conveyor structure, heavy equipment, and items aimed at achieving the desired objectives. The Company will provide information on these efforts in a separate news release in the coming weeks.
Project Status Overview:
The extensive planning, development and construction of site infrastructure at Krone-Endora at Venetia was successfully completed over a period of less than 18 months, which has positioned the Company to now further advance the development of the Project and pursue near-term production. Following the completion of the above-mentioned commissioning and testing exercises, the Company plans to focus on achieving targeted staged monthly operational increases through a move to trial mining to provide the Company with production and cash flow. The Company anticipates that the move to full scale mining will coincide with the confirmation by the South African Department of Mineral Resources of the issuance of a mining right which has been applied for and is currently in process. In conjunction with the full scale mining exercises, the Company also plans to carry out a bulk sampling programme on new areas of the Project not previously accounted for in the initial NI 43-101 Technical Report filed by the Company as part of the acquisition process. These efforts are designed to support the future filing of an updated NI 43-101 Technical Report, and to assist Management when developing long-term production targets and decisions for the Project.
Strategic Tiffany & Co. Alliance:
As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with world famous New York based Tiffany & Co. to purchase up to 100% of the future production of rough diamonds (excluding Specials, individual stones of 10.8 carats or greater) from the Krone-Endora at Venetia Project at current prices to be determined by the parties on an ongoing basis. In conjunction with this right of first refusal, Tiffany & Co. also provided the Company with substantial financing to advance the Project as quickly as possible. This right of first refusal was modified in conjunction with the additional $4.0 Million financing from Tiffany & Co. announced on November 16, 2012 such that the Company may sell for its own account the standard assortments derived from the first three shipments of diamonds produced from the Project, subject to certain conditions. This initial tender and sale of 3,579.58 carats falls within this modified right of first refusal arrangement. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF. Originally founded in 1837, the Tiffany's 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 July 31, 2012 Tiffany & Co. operated 260 stores and boutiques in the Americas, Japan, Asia-Pacific, and Europe and 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:
On February 28, 2011, Diamcor successfully 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. Commissioning of the processing plant is now underway, and the Company's current efforts are designed to be a continuation of the ongoing advancement of 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 experience supplying rough diamonds to the world market. 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.
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.
Phone: (250) 864-3326
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. This news release is not for dissemination in the United States, to "U.S. Persons" or to United States of America news services.
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SOURCE: Diamcor Mining Inc.For further information:
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
Phone: (250) 864-3326