TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)
KELOWNA, BC, June 20, 2012 /CNW/ - Diamcor Mining Inc. (TSXV: DMI) (OTCQX: DMIFF) (the "Company"), is pleased to announce that the vast majority of the construction and installation of site infrastructure at the Krone-Endora at Venetia project (the "Project" or "Krone-Endora") is now completed, and the Company has thus begun the commissioning of a new 200 ton per hour modular processing plant installed at the Project. The commissioning and testing of this purpose built plant will be completed over the coming weeks, and will include (i) the processing of the remainder of the concentrate material secured as part of the acquisition of the Project from DeBeers Consolidated Mines Limited, and (ii) the processing of new material which has been recently mined and stockpiled from the K1 area of the Project. Along with allowing for the testing and commissioning of the plant, these exercises are aimed at recovering an initial quantity of rough diamonds suitable for preliminary sorting by the Company and its strategic alliance partner Tiffany & Co., and to assist the Company in establishing a new and current average dollar per carat estimate for the Project's rough diamonds. Following these exercises the Company plans to focus on achieving targeted staged monthly operational increases through a planned move to recommended near-term trial-mining exercises to provide the Company with near-term production and cash flow. In conjunction with the planned trial-mining exercises the Company also plans to complete additional bulk sampling exercises 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 for the Project, and to assist the Company in arriving at final long-term production targets and decisions for the Project.
"The completion of the site infrastructure, and the installation of our new processing plant, are yet another example of our team's ability to execute on our business plan," noted Diamcor CEO Dean Taylor. "This extensive work was not only completed in a very short period of time, but also done on budget, allowing the Company to preserve operating capital for the further advancement of the Project", added Mr. Taylor.
Site Infrastructure Overview:
The extensive planning, development, and construction of site infrastructure at Krone-Endora has been completed over a period of less than 18 months, and has positioned the Company with the ability to now further advance the development of the Project. The following is a brief overview of the various items completed:
- The construction and upgrading of +/- 9-km of primary access roads to support the long-term needs of the Project, along with the upgrading of an additional +/- 8km of secondary operational roads for crew transport
- The clearing of +/- 60km of temporary roads for the deployment of operational teams to complete the recommended infill and extended drilling programme
- The completion of the recommended infill and extended drilling on a total of 558 targets covering an area of approximately 400 hectares, and the subsequent rehabilitation of those areas following the drilling
- The installation of +/- 4km of high strength, solar powered, electrical security fencing and gates around entire area chosen for trial-mining and construction of the plant site
- The clearing and removal of approximately 4,000 truckloads of material from low-grade quarry areas and the transport of that material for the construction of the Project's plant site
- The clearing of +/- 5 acres for the construction of the plant site area and the areas for the fresh water, waste, and settling dams
- The completion of civil engineering works, construction of a 5m raised gabion rock wall around plant site, and extensive concrete work in preparation for the installation of the modular processing plant, DMS, final recovery units, and associated offices and workshops
- The design, manufacturing, and installation of a new purpose built 200 tph modular processing plant, including the bulk material reduction pans, DMS, final recovery units, and extensive conveyor structures
- The installation of generator based power units to support the short-term needs of the Project during construction, trial-mining, and to serve as standby power backup for the Project for the long-term
- The procurement and delivery of long-term production related equipment to the Project
- Installation of double welded plastic one-piece 2mm linings in all dams, along with the installation of extensive water management recovery systems and tanks aimed at recovering and reducing overall water consumption
- The rehabilitation of previous bulk sampling areas not targeted for mining exercises in the near-term, and the establishment of test plots for ongoing research and testing of materials and vegetation for use in ongoing rehabilitation
- Completion of all engineering, regulatory work, and installation of +/- 14 km of water pipelines to support the long-term needs of the Project
- The installation of +/- 4km of power lines to support water infrastructure, along with the ongoing installation of a +/- 8 km 1,000 kVa main power-line to support the long-term needs of the Project
Processing Plant Overview:
The purpose built modular processing plant installed at the Project has been designed in conjunction with the use of a mobile Terex H-6203 power-screening unit in the Project's quarry area. The H-6203 is the largest in the Terex fleet of mobile power-screens, and is capable of dry-screening material at a rate of up to 800 tons per hour. The use of this equipment is primarily aimed at screening out fine material (approximately 45%), which lowers operational costs associated with haulage and provides the additional benefit of reducing overall water consumption. Screened material is then transported to the Project's new modular plant where it will be processed through 16' bulk material reduction pans before entering a Dense Media Separation (DMS) plant. Primary hands-off final recovery will be completed using containerized x-ray Flow-Sort machines followed by a secondary grease system. Processed material will then be back-hauled to the quarry for immediate rehabilitation to further streamline operational efficiencies and allow the Company to minimize the size of the open quarry at all times. The design of the modular plant is aimed at supporting the Company's initial targeted ramp of up to 10,000 carats per month within 12 months. Due to the modular nature of the plant, additional expansion can be performed as needed in a very cost effective way when desired.
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 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. 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. 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 April 30, 2012 Tiffany & Co. operated 251 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. The Project consists 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 "Eluvial" basal deposit which is covered by a lower-grade upper "Alluvial" 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.
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.
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.
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.
For further information:
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
Phone: (250) 864-3326