TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)
KELOWNA, BC, March 5, 2012 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the "Company"), is pleased to announce the initial recovery of rough diamonds from the company's Krone-Endora at Venetia project (the "Project"). The rough diamonds were recovered in conjunction with initial testing and commissioning work completed on the x-ray flow-sort final recovery modules being installed at the Project. As part of the tests, approximately 30%, or 3 tons, of a total 10 tons of unprocessed concentrate which was acquired by the Company as part of the Project's acquisition from De Beers were processed, resulting in the recovery of 1,877 individual rough diamonds with a total weight of approximately 143.96 carats. Of the diamonds recovered, six of the individual stones were 1.0 carat or larger in size, with the two largest being recorded at approximately 3.93 carats and 2.09 carats respectively. The acquired concentrate processed and used for this testing was a by-product of exploration and bulk sampling efforts previously completed by De Beers on the Project, and was recovered from various depths and areas in and around the K1, K3, and confluence areas of the Project.
The Company views these results as very encouraging and valuable given the material used was directly recovered from known areas of the Project which are being targeted for future mining operations. It should be noted that these testing recoveries do not form part of the initial NI43-101 Technical report filed by the Company on July 30, 2009, and no grade or quality determination is intended by the Company due to the nature and purpose of the processing of this material.
"The initial recovery of rough diamonds from the Krone-Endora at Venetia project represents yet another key milestone for our Company," noted Diamcor CEO Dean Taylor. "With this important step now accomplished, we are focused on completing the remaining installation, testing, and commissioning work underway on the Project's processing plant and infrastructure as quickly as possible, which will allow us to further advance the Project and move towards our next milestones," added Mr. Taylor.
The Processing plant and infrastructure development being installed at the Project has been designed in conjunction with the use of large power-screening equipment to initially allow for the processing of up to 200 tons of material per hour. Upon successfully completing installation and commissioning of the processing plant and related infrastructure, the Company is targeting staged monthly operational increases during the near-term trial-mining phase in conjunction with additional bulk sampling exercises on new areas of the Project not previously accounted for in its initial NI 43-101 Technical Report. In addition to securing short-term production, these efforts are designed to support the filing of a new updated and current 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.
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 December 31, 2011 Tiffany & Co. operated 246 retail 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.
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, Geologists, and Geophysicists of Alberta ("APEGGA"). 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.
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For further information:
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
Phone: (250) 864-3326