TSX.V Symbol (DMI)
KELOWNA, BC, Aug. 6, 2013 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI), (the "Company") an emerging producer of rough diamonds, announces that
the installation of the main power line to the Company's Krone-Endora
at Venetia Project (the "Project") has now been completed. The 8.4 km
main power supply line, constructed by State electricity supplier
Eskom, is the final key infrastructure requirement for the Project and
is expected to provide immediate operational cost savings and reduced
downtime when compared to the diesel generators currently being used at
the Project. The Company has also installed an additional 0.7 km power
line to support the in-field screening plant. With these power lines
now complete, the existing diesel generators at both the main plant and
the in-field screening plant will remain in place to provide the
Project with added benefit of standby power.
In addition, the Company has recovered four additional "Special"
diamonds in the +10.8 carat category during the ongoing testing and
commissioning work being performed at the Project. The four additional
Specials recovered were 12.82 carat, 17.75 carat, 20.48 carat, and
48.26 carat stones. The Company previously announced on May 28, 2013,
the recovery of the first Special diamond, an 11.23 carat, during
initial testing of material in the +1.0mm to -10.0mm size fraction, and
then on July 11, 2013, the recovery of two additional Specials, 13.38,
and 15.16 carat diamonds during the early processing of material in the
+12.0mm to -28.0mm size fraction. With the recovery of these latest
Specials the Company has now recovered seven individual diamonds over
10.8 carats in size during the initial testing and commissioning
exercises underway with only limited tonnage having been processed.
Individual diamonds of further note recovered during the month of July
include: 9.55 carat; 8.71 carat; 7.69 carat; 7.55 carat; 7.13 carat;
6.50 carat; 5.72 carat; and 5.36 carat stones. The installation of a
crushing circuit at the main plant is now underway, and once
operational is expected to further increase the effective processing of
larger size fractions, thus providing additional opportunity for the
recoveries of larger diamonds.
"The installation of the main power line to the Project marks the
successful completion of the final infrastructure item for the Project,
and one that will provide immediate benefits to operating cost and
reliability", commented Mr. Dean Taylor, President and Chief Executive Officer of
Diamcor. "The continued recovery of larger diamonds also provides us with yet
further confirmation of the Project's ability to produce large
diamonds, and while their quality does vary like all production, the
frequency with which they are being recovered certainly is indicative
of the potential for high quality / high dollar value diamonds to be
recovered more often", added Mr. Taylor.
To date, the Company has recovered and tendered a total of 6,702.90
carats of diamonds for total gross proceeds of (US) $926,324.03 from
the initial testing and commissioning exercises underway at the
Project. As of July 31, 2013 the Company had also delivered 3,460
carats of diamonds for tender and sale in the coming weeks.
The Company also reports that it has granted incentive stock options
("Options") to purchase an aggregate 1,550,000 common shares ("Shares")
to certain officers, directors, employees, and consultants pursuant to
the Company's stock option plan. All Options are exercisable at a price
of $1.25 per share, for a period of five years expiring on August 6,
2018. No Shares acquired upon exercise of the Options may be traded
prior to December 7, 2013. With the issuance of these Options the
Company now has Options issued to purchase an aggregate of 5,548,333
shares.
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, extensive experience supplying
rough diamonds to the world market, and has established a long-term
strategic alliance with world famous Tiffany & Co. 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.
About the Tiffany & Co. Alliance
As announced on March 29, 2011, 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
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. Founded in 1837, the Tiffany
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
January 2013, Tiffany & Co. operated 275 stores and boutiques in the
Americas, Japan, Asia-Pacific, Europe and the United Arab Emirates, and
also 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
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. 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, and extensive
quarrying and in-field screening operations. Commissioning of the
processing plant is now complete, and the Company's current efforts are
designed to be a continuation of the ongoing advancement of the
Project, and as part of the Company's final preparations in
anticipation of a planned move to 24/7 operations in the near future.
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.
DTaylor@diamcormining.com
Tel (250) 864-3326
www.diamcormining.com
Investor Relations Contact:
Justin Vaicek
Liolios Group, Inc.
DMI@liolios.com
Tel (949) 574-3860
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.
SOURCE: Diamcor Mining Inc.
