Shares Issued and Outstanding: 54,659,623
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Oct. 10, 2017 /CNW/ - Diamcor Mining Inc., (the
"Company") announces the results of the tender and sale of rough
diamonds recovered from ongoing exercises performed during the
quarter ended September 30, 2017 at
the Company's Krone-Endora at Venetia Project (the
"Project"). The Company sold 7,771.13 carats of rough
diamonds for gross proceeds of USD $1,334,335.41, resulting in an average price of
USD $171.70 per carat. As of
the end of the quarter, the Company had approximately 2,465.00
additional carats of rough diamonds, before acid washing, which
will be tendered in the coming quarter. The Project continued
to demonstrate potential for the recovery of larger rough diamonds
despite limited processing, with 3 individual rough diamonds in the
specials category (+10.8 carats), and 35 individual rough diamonds
over 5 carats in size recovered and sold during the quarter.
Given the continued price weaknesses in certain categories of rough
diamonds during the period, the Company was pleased with the
average dollar per carat achieved, which is indicative of the
overall quality of the Project's rough diamonds.
Operational Update
The testing, commissioning and calibration of the facilities at
the Project continued during the quarter, with an emphasis on
refining the Project's newly expanded facilities to increase
processing volumes, increase the efficiencies of the screening of
material at the Project's In-field Dry-Screening plant, and improve
the recovery of water from the Project's settling dams. Both
of the Project's processing plants are now complete and capable of
processing material at significantly higher volumes; however,
insufficient recoveries of water from the Project's settling dams
limited the Company's ability to operate these plants at their
designed capacities during the period. The Company's operational
team, in conjunction with various consultants, performed testing on
both the Project's water quality and the material being processed
during the quarter, and have identified that the cause of the issue
is related to the combined borehole water quality and the
excessively suspensive properties of the very fine kimberlitic clay
materials of the Project. The Company has long identified the
removal of fines as a key element of the Project, and has expended
significant resources and time in the development of the Project's
In-field Dry Screening plant to address this issue. While
those efforts have succeeded in removing a significant amount of
the fine material, the current issue is a result of the additional
fines which are created after the introduction of water at the
Project's Main Treatment Plant. Testing and initial modelling
performed by Vietti Slurrytec in Johannesburg indicate the challenge can be
alleviated through water treatment and paste thickening
solutions. As a result, the Company is now finalizing plans
to deal with this issue in the near-term. In the
meantime, additional efforts are underway to minimize the negative
impact of the issue in the short-term through an additional
screening circuit at the In-field Dry-Screening facilities.
These efforts are aimed at further liberating and removing
additional fine materials under 1.0mm prior to their delivery to
the Project's Main Treatment plant. The installation of
automated water control valves is also being completed to lower
overall water consumption until the noted water treatment and paste
thickening solution can be finalized. The newly expanded
facilities are performing well with the issue of water recoveries
being the only limiting factor, and the Company is confident that
processing volumes can be significantly increased once the noted
solution for this issue can be implemented.
"it is unfortunate that the material being processed through
our larger facilities reacts in a manner which does not allow us to
recover/recycle sufficient water from the current settling dams;
however, we firmly believe this is the only item limiting the
processing of materials at much higher levels, and the solution we
have identified will not only address this issue, but will also
provide other operational benefits over the long-term", noted
Diamcor's CEO Mr. Dean Taylor.
"With the Project's newly expanded facilities, permitting, and
infrastructure in place and the average dollar per carat continuing
to confirm the quality of the Project's diamonds, we are confident
that implementing the new water recovery solution will allow us to
demonstrate the considerable value proposition of the Project in
the near-term", added Mr.
Taylor.
The combined testing, commissioning, and calibration exercises
currently underway are designed to support the continued
advancement of objectives consistent with the recommendations of
the updated NI 43-101 Technical Report ("Updated Technical Report")
filed by the Company on April 28,
2015, and to aid the Company in arriving at initial
production decisions for the Project. The recovery of all
rough diamonds to date are incidental to the ongoing commissioning
and testing exercises performed at the Project. The
above-noted testing exercises and incidental recoveries do not form
part of the Updated Technical Report and therefore 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 QB International
under the symbol DMIFF. The Company has a well-established
operational and production history in South Africa and extensive prior experience
supplying rough diamonds to the world market.
About the Tiffany & Co. Alliance
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 financing to advance the Project. Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF. 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. On
September 11, 2014, the Company
announced that the South African Department of Mineral Resources
had granted a Mining Right for the Krone-Endora at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. 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 a maximum total depth of approximately 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.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc.,
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.
