Diamcor Mining Inc. closes acquisition of South African alluvial diamond exploration project


    TSX.V Symbol (DMI)

    KELOWNA, BC, Nov. 6 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the
"Company") announces that, through its wholly-owned South African subsidiary
Blue Dust 25 (Pty) Ltd. ("Blue Dust"), it has now completed all planned due
diligence and received the required approvals allowing the Company to conclude
the agreement in principle previously announced on September 14, 2007, to
acquire a 24% interest in a privately held South African company, Nerikets
Properties (Pty) Ltd. ("Nerikets"), (the "Agreement"). Pursuant to the terms
of the Agreement, the Company has also secured an exclusive option to acquire
the remaining 76% interest in Nerikets. Nerikets holds the Prospecting Rights
Permit for diamond exploration over a 3,606.44 hectare area known as
Hardcastle located on the north bank of the Middle Orange River (the
"Property"). The Property is located close to the Company's current base of
operations and located approximately 200 km southwest of Kimberley, South
Africa and approximately 20 km north of Prieska, South Africa.
    In accordance with the terms of the Agreement, the Company has now
completed all conditions precedent to closing including conducting extensive
due diligence on the Property through the use of its existing South African
management team, the independent geological services of MSA Geoservices (Pty)
Ltd. ("MSA") of South Africa, and the efforts of both its South African and
Canadian legal advisors and accountants. Through the independent work of MSA,
the Company commissioned an Initial Independent Technical Report ("Report") on
the proposed Hardcastle Alluvial Diamond Project ("Hardcastle Project" or
"Project") to comply with its disclosure and reporting requirements set forth
by the TSX Venture Exchange in compliance with the Canadian National
Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"). The author and qualified person of the Report is Mr. Norman Lock
(BSc, PhD, CGeol FGS, MGSSA, PrSciNat), and the Report has been submitted and
filed by the Company as required, and can be referenced on SEDAR by interested
individuals at www.sedar.com.
    The Hardcastle Project is considered to represent an "Exploration
Project" which is inherently speculative in nature. In the Report, MSA
concluded that the Project was being acquired on the basis of sound technical
merit and generally considered to be sufficiently prospective, subject to
varying degrees of exploration risk, to warrant further exploration and the
assessment of its economic potential. The Project is located near the banks of
the Orange River and is easily accessible and served by rural infrastructure
including the availability of power for the contemplated requirements.

    Area History

    By way of background, the Report identifies that the erosion of up to
1,000 m of potentially diamond bearing kimberlite pipes in the general area of
Kimberley has long provided a diamond source for the transport and
re-deposition of economic concentrations of diamonds in secondary alluvial
occurrences. The geomorphic evolution of the Orange River basin in which the
Property is located, has provided a complex history of gravel terrace
development, deconstruction and re-deposition in gravel on terraces at various
levels. The alluvial diamond deposits of the Middle Orange may be sourced from
primary kimberlite hosts and secondary alluvial deposits in the greater
Vaal-Orange drainage basin such as, the diamondiferous kimberlites of Lesotho,
the diamondiferous kimberlites of the Kimberley area, the diamondiferous
kimberlites of Postmasburg fields including the Finsch mine, and diamonds from
the Lichenburg-Western Transvaal alluvial diamond-fields. A simple sequence of
"older gravels" as much as 100 m above the present day valley floor of the
Middle Orange, and "younger gravels" at elevations close to the current river
level, has been recognized and mapped in detail in many localities in the
area. Each of the terrace levels moving towards the river level embrace areas
of diamond concentration in appropriate host gravel accumulations and trap
sites. The Report outlines the general Middle Orange alluvial deposits of the
area in which the Property is located as generally underlain by Dwyka tillite
that forms a smooth surface with little trapsite potential. The Report also
identifies the higher level terraces as generally of better diamond grade than
those at lower relative elevations, and the meanders of the river as having
ensured that terrace remnants exist on both the north and south banks of the
Orange River. Initial data on general terrace succession for the Middle Orange
River area as outlined in the Report is as follows:

             Table 7-1 MSA Report October 18, 2007 (Hardcastle)
               General Terrace Succession, Middle Orange River

    Unit                Thickness    Gravel Type             Description

    The Hutton Sands
     (Kalahari)            5.0          N/A             Fine, unconsolidated
                                                         yellow sands and

    Rooikoppie Gravels     1.5      Secondary (formed   Lag or deflation
                                     from primary        layer of rounded,
                                     gravel by           polished siliceous
                                     weathering)         pebbles in red sand

    Calcrete               1.0          N/A             Hard and indurated,
                                                         generally massive,
                                                         with rare grits and
                                                         small pebbles.

    Suspended Gravel       1.5      Primary (formed     Upward-fining,
                                     by fluvial          cross-bedded to
                                     activity)           massive, sandy.
                                                         Calcrete cement
                                                         reduces downward

    Parting                0.8      Primary (formed     Patchy, lenticular,
                                     by fluvial          structureless
                                     activity)           pebbly sand and

    Basal Gravel           5.0      Primary (formed     Upward-fining, cross
                                     by fluvial          bedded to massive,
                                     activity)           common very large
                                                         boulders at the
                                                         base, clay rich
                                                         matrix, calcrete
                                                         cement in upper

    Bedrock                                             Dwyka tillite, shale,

    Planned Exploration Work Programme

    With initial due diligence and the pending Agreement now complete,
geological focus will now be on devising and implementing a recommended field
program to better identify, and evaluate, any diamondiferous gravels of the
Project to determine potential gravel volume, diamond grade, and average
diamond value compliant with CIM Definition Standards for the reporting of
mineral resources. Diamond mineralization and alluvial gravel quantities
within the Project boundaries are not known at this time but, as identified in
the Report, are present in gravel deposits both upstream and downstream from
the Property area. The best known of these is the Saxendrift Mine on the south
bank of the Orange River between Douglas and Prieska, about 40 km upstream
from the Property and the Wouterspan deposit on the north bank of the Orange
opposite Saxendrift. Both of these properties, together with Makoenskloof, are
under development by other companies. The Silverstreams, Muishoek and Uitdraai
properties are also under investigation by other companies, and straddle the
north and south banks of the Orange River immediately adjacent to the
Hardcastle Project area but at lower terrace elevations.
    The early geophysical work performed for the purposes of the Report
generated by MSA is preliminary in nature, and does not provided any
conclusive evidence of the potential of the Property. The initial due
diligence work completed on the Project prior to closing was aimed at
identifying any areas of potential geological interest on the Property which
the Company believes have the potential to contain diamond bearing alluvial
gravels. Through the use of initial satellite based "aster" imagery the
Company has identified several areas of interest which collectively cover
approximately 30% of the surface area of the Property. A planned work
programme aimed at further understanding these areas of potential interest
further through the use of extensive low level helicopter based magnetic
gradiometer work over a total of approximately 70% of the Property is
scheduled to begin immediately. The Company believes these additional efforts
will provide a more detailed understanding of the sub-surface geological
composition of the Property which it will use, in addition to the initial
satellite imagery, to finalize plans for an extensive drilling and pitting
program in the coming months. The proposed drilling and pitting program is
expected to be followed by a bulk sampling program aimed at establishing the
grade and quality of any diamond bearing alluvial gravels the Company may
locate. All relevant exploration efforts will be performed in conjunction with
independent parties such as MSA to allow the Company to further build on the
NI 43-101 compliant Report. Implementation of these programs will be funded
through the proceeds of the recently completed private placements.

    Terms of the Agreement

    Under the terms of the Agreement, Blue Dust acquired a 24% interest in
Nerikets, with an option to acquire up to a 100% interest. As consideration
for the 24% ownership of Nerikets, Blue Dust paid a nominal price of R24.00.
In addition to the purchase price payable to Nerikets, Blue Dust has agreed to
expend an amount of not less than US $500,000 in Rand equivalent
(approximately R3 500 000) for exploration of the Property within the 18 month
period from the closing date. Amounts expended by Blue Dust for exploration
will be credited to a loan account with Nerikets in favour of Blue Dust which
will only become payable should Blue Dust acquire a 100% interest in Nerikets,
or if Blue Dust and Nerikets' other shareholders elect to dispose of their
respective interests, totalling 100% of the shares in Nerikets in a single
transaction to one or more third parties.
    In addition to the 24% ownership, Blue Dust has secured an exclusive
option to purchase the remaining 76% shares in Nerikets for an agreed upon
maximum price during the option period of 18 months from the closing date of
the Agreement. As consideration for the above option, Blue Dust has agreed to
pay a scaled monthly option fee for the 18 month option period beginning with
payments of R75 000 (Approx. $10,700 Cnd) per month for the first 3 months
with the first payment commencing on the closing date of the Agreement,
followed by payments of R100 000 (Approx. $14,500 Cnd) per month for the next
6 months, and payments of R150 000 (Approx. $21,500 Cnd) per month for the
remaining 9 months of the option period. Should Blue Dust fulfill its
obligations with regards to exploration funds but declines, or fails to
exercise the option within the 18 month option period, it will still retain a
first right of refusal over the optioned shares. The amounts paid as option
fees by Blue Dust will be credited to a shareholder loan account in favour of
Blue Dust, which shall only become payable should Blue Dust acquire a 100%
interest in Nerikets, or if the parties dispose of their respective shares, to
one or more third parties in the manner described above.
    In conjunction with the Agreement the parties have signed a Contract
Mining Agreement under which Blue Dust has been appointed to act as the agent
for and on behalf of Nerikets and as an independent contractor to carry out
all exploration and mining activities, as well as the overall management
operation and administration of related activities at the Project, for the 18
month option period, and subject to extension prior to expiration of the
Contract Mining Agreement. All benefits arising and accruing from the mining
activities shall be to the exclusive benefit of Blue Dust, with the provision
that 10% of the actual sale of any single diamond sold for not less than
R2 000 000 (Approx. $285,000 Cnd) will be payable to Nerikets.
    "We are very pleased to have secured the Hardcastle Alluvial Project. It
represents an opportunity for the Company to explore a region known for high
quality diamond reserves and potentially move forward with near-term
production, pending our geological and economic analysis," commented Mr. Dean
Taylor, President and CEO of Diamcor Mining Inc.
    Diamcor Mining Inc. is a junior resource company with established
operations and production history in South Africa. The Company is determined
to use this established operating history and industry knowledge to increase
its current production of diamonds through the development and/or acquisition
of additional quality properties in the region.

    On behalf of the Board of Directors
    Mr. Dean H. Taylor
    Diamcor Mining Inc.

    The TSX Venture Exchange does not accept responsibility for the
    adequacy or accuracy of this release.

    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.


For further information:

For further information: Mr. Dean H. Taylor, CEO, Diamcor Mining Inc.,
DTaylor@Diamcormining.com, Phone: (250) 864-3326, Website:

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