TSX.V Symbol (DMI)
KELOWNA, BC, Jan. 13, 2014 /CNW/ - Diamcor Mining Inc. (TSXV:DMI), (the "Company"), an emerging producer of rough diamonds, has continued
to make excellent progress on the advancement of the Company's
Krone-Endora at Venetia Project ("Krone-Endora" or the "Project"), in
anticipation of its planned move to 24/7 operations. The Company also
reported its third consecutive increase in quarterly revenues in its
fiscal year 2014 from testing and commissioning exercises at the
Project.
During the third quarter of fiscal 2014 ended December 31, 2013, the
Company completed two sales of rough diamonds. The majority of the
rough diamonds sold were recovered in conjunction with ongoing testing
and commissioning exercises on the lower-grade upper zone material in
the +1.2mm to -12.0mm size fractions, with the remaining diamonds
recovered from limited processing of material in the +12.0mm to -26.0
mm size fractions.
A total of 3,955 carats of rough diamonds were sold in the third quarter
of fiscal 2014, generating total proceeds of $1,431,288.00 (US), or an
average of $361.81 (US) per carat. This represents an increase in
total quarterly proceeds; compared to $856,119.02 (US) for the second
quarter of fiscal 2014 ended September 30, 2013, and $415,495.03 (US)
for the first quarter of fiscal 2014 ended June 30, 2013. Total
proceeds for the third quarter of fiscal 2014 included proceeds from
the previously announced sale of the Company's first gem quality rough
diamond in the +50 carat size category, a 91.72 carat octahedron
diamond which sold for $817,920.00 (US), or $8,917.58 (US) per carat.
As of December 31, 2013 the Company had approximately 1,500 additional
carats of rough diamonds which will be tendered for sale in the current
quarter, which is the Company's fourth quarter of fiscal 2014.
During the third quarter of fiscal 2014, in conjunction with the ongoing
testing and commissioning exercises, the Company also completed further
development and expansion work on the Project's in-field quarrying and
dry-screening plant. This included the installation of a higher
capacity resonance screening system supplied by Dabmar Industries,
along with expanded conveyor systems and structures designed and
fabricated by the Company to enhance the efficiency and capacity of the
dry-screening plant. Additionally, the Company made enhancements to
the main processing plant including the installation of greater
capacity de-watering screens and a dedicated crushing cycle which will
improve the effectiveness of processing materials in the larger size
fractions.
To date, the Company has tendered and sold a total of 15,411.74 carats
generating total proceeds of $3,213,731.05 (US), or $208.52 (US) per
carat on average, from the ongoing commissioning and testing exercises
performed at the Project. It should be noted that the above testing
recoveries, and sales, do not form part of the initial NI43-101
Technical Report filed by the Company in July 30, 2009, and thus no
general grade, price, or quality determination is intended by the
Company at this time due to the nature and purpose of the processing of
this material.
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
October 31, 2013, Tiffany & Co. operated 283 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 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 and
final refinements to the quarry and in-field screening operations are
designed to be a continuation of the ongoing advancement of the
Project, and 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:
Ron Both
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.
