TSX.V Symbol (DMI)
KELOWNA, BC, Feb. 5, 2015 /CNW/ - 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
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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SOURCE Diamcor Mining Inc.
For further information: Mr. Dean H. Taylor, President & CEO, Diamcor Mining Inc., DTaylor@diamcormining.com, Tel (250) 864-3326, www.diamcormining.com