TSX.V Symbol (DMI)
KELOWNA, BC, Feb. 11, 2014 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI), (the "Company") announces that as a result of a review by the British
Columbia Securities Commission ("BCSC"), it is issuing this news
release to clarify its disclosure regarding the following issues. The
Company was selected for review as part of the BCSC's ongoing program
to improve the quality of disclosure provided to investors.
Technical Disclosure Matters
The Company's news release dated October 11, 2011 referred to an
increase in the tonnage quantity attributable to identified gravel
material on the Company's Krone-Endora at Venetia Project
("Krone-Endora" or the "Project"), including an increase of 97.5% in
the tonnage estimate attributable to the Basal Zone gravels over the
Basal Zone tonnage estimate in the Company's initial technical report
filed on July 30, 2009 (the "2009 Report") under National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
The drilling data used by the Independent Qualified Person to estimate
new tonnage quantities did not include data pertaining to grade and
quality as the drilling programme was only intended to identify the
location, extent and thickness of the Upper Zone and Basal Zone gravels
within the areas previously explored by DeBeers as well as within
additional surrounding areas (the "Additional Areas") and was not
intended to identify grade or mineral resources relating to the areas
drilled. The most recent resource estimate in respect of the Project
remains the inferred mineral resource estimate of 1,314,000 carats
contained within 54,258,600 tonnes set forth in the 2009 Report. NI
43-101 restricts disclosure of quantities that are not a mineral
resource, and the company retracts tonnage quantities at the
Krone-Endora project in excess of those supported by the 2009 Report.
The Company wishes to restate its disclosure with respect to the
Additional Areas to clarify that the Additional Areas represent an
additional exploration target covering approximately 200-230 hectares
of surface area. The exploration target is conceptual in nature and
there has been insufficient exploration to estimate ranges of tonnage
and grade. The Company's prior disclosure concerning the Additional
Areas was not intended to imply any increase to the mineral resource
estimates or contained diamond quantities for the Project beyond the
disclosure contained in the 2009 Report and it is uncertain whether
additional exploration efforts will result in the Additional Areas
being delineated as a mineral resource. As stated in the Company's
news release of October 11, 2011, the grade values reported in the 2009
Report in respect of the areas previously explored by DeBeers cannot be
applied to the Additional Areas as any grade values for these
Additional Areas can only be established after the Company completes a
recommended bulk sampling programme in respect of those Additional
Areas.
The Company also wishes to clarify that it has not, to date, conducted a
preliminary economic assessment (PEA) or mining study in respect of the
Project nor has it made any production decisions concerning the
Project. The decision to construct the current plant and facility for
the Project, as described in the Company's news release dated January
17, 2012 and elsewhere, is a function of the recommended bulk sampling
and trial mining work described in the 2009 Report. The objectives of
the Company's construction, testing, bulk sampling and trial mining
activities to date have been undertaken with reference to the Placer
Deposits Estimations Guidelines published by the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) (http://web.cim.org/UserFiles/File/Placer-Deposits-Guidelines.pdf) which includes guidelines for Alluvial Diamond Deposits, including the
following:
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to confirm the results obtained from the exploration sampling and gravel
resource estimates;
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to determine diamond sizes and grades for the different types of gravel
deposits (if appropriate);
-
to determine the mining parameters for the different types of gravel
deposits (e.g. in-situ bulk density, clay content, etc.);
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to test and refine the proposed mining/processing methods for the
different types of gravel present; and
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to obtain a parcel of diamonds of sufficient size to allow for the
determination of diamond size frequency distribution, valuation and
modelled value analyses of the alluvial deposit.
The Company notes that the CIM guidelines also recommends that the
minimum bulk sample size should be designed such that a minimum of 3000
carats of diamonds are recovered for grade and valuation purposes and
to obtain a representative sample from each of the main gravel types if
more than one type is present, as is the case with the Project. The
CIM guidelines also state that gravel samples should be processed in
the same manner as to be used in the process plant that would be used
in a full scale operation. The Company is pleased with the progress it
has made to date in pursuing the objectives of the recommended bulk
sampling and trial mining activities, but these activities are not yet
complete. In particular, the Company's efforts to retrieve
sufficiently large representative bulk samples from each of the main
gravel types identified on the Project are on-going and have not yet
been completed. The Company's focus has been to construct the
infrastructure and facilities necessary to process sufficient
representative bulk samples from each of the main gravel types present
on the Project in the same manner as would be used in a full scale
operation. To date, the Company has completed most of the necessary
infrastructure and facilities, including the testing and commissioning
of the processing plant, and is currently engaged in testing different
processing procedures in order to optimize the procedures and
operations that will be used to complete the bulk sampling of each of
the main gravel types present. In the course of completing the testing,
commissioning and optimization exercises, the Company has processed a
variety of material which is not of a sufficient size to constitute a
representative sample from any one of the existing main gravel types,
as contemplated by the CIM Guidelines, and all diamond recoveries that
have occurred to date have been incidental to these testing,
commissioning and optimization exercises. The Company's strategy has
been to complete the necessary infrastructure and facilities to enable
it to carry out the recommended bulk sampling and trial mining
exercises on each of the main gravel types and to use the collected
data to support the preparation and filing of an updated NI 43-101
Technical Report and an ultimate production decision.
In its news releases of January 17, 2012, June 20, 2012 and elsewhere,
the Company indicates that the design of its modular plant for the
Project is aimed at supporting an initial targeted ramp of up to 10,000
carats per month within 12 months. These references relate to the
previously described bulk sampling and trial mining exercises and are
not intended to indicate that the Company has made a decision to enter
into full scale mining operations. Any decision to enter into full
scale mining operations would be made after the completion and
assessment of the bulk sampling and trial mining exercises on the areas
comprising the mineral resource estimate contained in the 2009 Report
and, as noted in the Company's news releases dated November 27, 2012,
after confirmation by the South African Department of Mineral Resources
of the issuance of a mining right.
In the Company's news release of May 2, 2013 and elsewhere, reference is
made to the Company being an emerging producer of diamonds. This
reference refers to the Company's historical production, principally
from its former So Ver project, and to the limited recoveries and sales
of diamonds obtained from, an incidental to, its ongoing testing,
bulking sampling and trial mining activities at Krone-Endora. The
reference is not intended to suggest that the Company is an established
diamond producer with consistent production based on full scale mining
operations at the Project. Similarly, in its news release of March 13,
2013 and elsewhere, reference is made to certain upgrades to the
equipment and infrastructure for the quarrying and in-field screening
operations at the Project in anticipation of a planned move to 24/7
operations in the near future. This reference should have included the
qualification that the move to full scale mining operations would be
made only after the completion and assessment of the bulk sampling and
trial mining exercises on the areas comprising the mineral resource
estimate contained in the 2009 Report and after confirmation by the
South African Department of Mineral Resources of the issuance of a
mining right. The Company wishes to emphasize that to the extent that
any past or future processing of gravel material at the Project, and
any associated incidental recovery of diamonds, can be viewed as
production from mining activities, then unless and until the Company
completes a formal economic analysis, such as a pre-feasibility study
or a feasibility study, in accordance with NI 43-101, such production
must viewed as proceeding in the absence of any formal economic
analysis of any mineral reserves demonstrating economic and technical
viability. Consequently, there can be no assurance that such mining
activities will prove to be economically viable or sustainable and the
associated risks of technical or financial failure may be
significantly higher.
Further to the foregoing, the Company wishes to clarify all references
in its continuous disclosure materials, including the Company's
Management Discussion & Analysis for the period ended September 30,
2013 and elsewhere, to operations, operational history, life of mine,
production targets, production growth and similar production or
operational related references with respect to the Project are not
intended to suggest that the Company is an established diamond producer
with consistent production based on full scale mining operations at the
Project, that any decision has been made to engage in full scale mining
operations at the Project or that the Project has been the subject of
any economic analysis or mining study.
The term "potential resource" was inadvertently included in the
Krone-Endora Exploration section of the Company's website. This
reference did not comply with the mineral resource categories required
under section 2.2 of NI 43-101. This reference has been removed or
corrected as appropriate.
Independent Analyst Reports
The Company also wishes to caution investors that the Company has not
adopted and does not endorse any independent analyst reports or the
assumptions or conclusions contained in such reports. Links to several
such reports, namely the report dated December 2, 2013 and prepared by
Roth Capital Partners and the reports and the reports prepare by
Fundamental Research Corp. dated December 4, 2013, August 19, 2013,
January 19, 2013, June 4, 2011 and September 24, 2010, previously
appeared on the Company's website with the following cautionary
language: "Disclaimer: Diamcor Mining Inc. is followed by the analysts
listed above. Please note that any opinions, estimates or forecasts
regarding Diamcor Mining's performance made by these analysts are
theirs alone and do not represent opinions, forecasts or predictions of
Diamcor Mining or its management. Diamcor Mining does not, by its
reference to these analysts or the dissemination of any information,
conclusions or recommendations provided by those analysts, imply its
endorsement of or concurrence with such information, conclusions or
recommendations." The Company has removed the links to these reports
and the Company wishes to emphasize that any assumptions, conclusions,
estimates, valuations or other forward-looking information contained in
these or any other independent analyst reports and not otherwise
supported by the disclosure contained in the 2009 Report or any
subsequent Technical Report prepared and filed in accordance with NI
43-101 should be considered speculative and represent the opinions and
conclusions of those analysts and not of the Company or its management.
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 prior operational and
production history in South Africa, extensive prior 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
traditional 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 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. 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
preparations for an ultimate decision to move from bulk sampling and
trial mining exercises to full scale mining operations.
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
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.
