Diamcor Completes Main Power Line / Recovers Additional Specials at
Krone-Endora Project
TSX.V Symbol (DMI)
KELOWNA, BC, Aug. 6, 2013 /PRNewswire/ - 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.