TSX.V Symbol (DMI)
KELOWNA, BC, May 28, 2013 /PRNewswire/ - Diamcor Mining
Inc. (TSX-V.DMI), (the "Company") an emerging producer of rough
diamonds, has recovered
the first "special" diamond in the +10.8 carat category from
its
Krone-Endora at Venetia Project (the "Project"). The recovery
of the
very good quality 11.23 carat diamond occurred during recent
processing
of material in the +1.0mm to -12.0mm size fraction through the
previously announced expanded quarrying and in-field screening
operations at the Project. In addition to the recovery of the
first
diamond in the "special" category, a total of approximately
2,464
carats have also been recovered from the limited processing
completed,
with the largest non-special diamond being recorded at 8.66 carats
in
size.
"The recovery of a diamond of this size and quality further
confirms the
potential of the Project to produce large quality diamonds",
commented Mr. Dean Taylor, president
and chief executive officer of
Diamcor, "to have it occur so quickly based on the limited
processing of material
mainly up to 12.0mm in size is also very promising", commented
Mr. Dean Taylor
As was widely reported, the region experienced very heavy
rainfall
throughout the first quarter of 2013. These unusual rain
levels had
not been recorded in the area for over 200 years. In addition to
flood
damage to roads, fences, and properties in the area, including
Krone-Endora, the excessive rains have proved challenging for
mining
operations, resulting in the delays and in some cases the
suspension of
normal mining operations. At the Krone-Endora mine site, stockpiles
of
larger material in the +12.0mm size fractions targeted for
processing
in the first quarter could not be processed effectively through
the
in-quarry dry-screening plant, and the processing of other size
material was also greatly limited due to these rains.
"While the significant rains delayed our efforts to advance the
Project
as quickly as desired and limited our ability to process material
at
levels targeted in the short-term, operations are now returning
to
normal", noted Mr. Taylor. "We're now focusing on ramping up
operations and are excited about the
prospect of processing larger size material".
As previously announced on March 13,
2013, the Company successfully
completed the desired procurement, delivery, construction, and
installation of the vast majority of equipment and
infrastructure
required to significantly expand the quarrying and in-field
dry-screening operations at the Project. These upgrades were
part of
the Company's final preparations in anticipation of a planned move
to
24/7 operations in the near future, and were completed as
budgeted
through the previously announced $4.0
million in additional financing
from its long-term strategic alliance partner Tiffany & Co.
Canada, a
subsidiary of world famous New
York based Tiffany & Co. The expanded
quarrying and in-field screening operations are designed to
provide
significant operational cost savings and efficiencies over the
long-term of the Project through the removal of an estimated 60-65%
of
fine material (-1.0mm in size) at the quarry through a
dry-screening
process. Production capacities of the expanded facilities are
designed
to exceed those of the main processing plant to allow for the
stockpiling of treated and screened materials at the main
processing
plant. With the fine material removed, screened material
stockpiled at
the plant would not be affected by rains in the future. The
delays
caused by the unusual rains in the first quarter of 2013 were a
result
of unfortunate timing, in that material recovered from quarry was
not
able to be processed through the expanded in-field
dry-screening
operations prior to being saturated by the rains, thus no stockpile
of
previously screened material was available at the main plant
for
processing as would be expected under normal
operations.
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, Geologists, and
Geophysicists 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.