TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)
KELOWNA, BC, Jan. 17, 2012 /PRNewswire/ – Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the “Company”), is pleased to announce that with the majority of the of ongoing site developments at the Company’s Krone-Endora at Venetia project (the “Project”) now nearing completion, deliveries of operational equipment and a new modular processing plant to the Project are now underway. The efforts undertaken in 2011 were designed not only to support the further advancement of the Project and the expected initial recoveries of rough diamonds in the short-term, but also to support the longer-term production targets of the Company in the coming months and years.
“2011 was a milestone year for Diamcor” noted Diamcor CEO Dean Taylor, “and we now find ourselves positioned as one of the very few companies in the world with the potential to provide sustained rough diamond production in the future at a time when prices are increasing, and shortfalls in supply are widely expected to grow”, added Mr. Taylor.
Milestone achievements in 2011 included the finalization of the Project’s acquisition from DeBeers in February, along with the Company’s announcement of a strategic alliance and financing with world famous luxury retailer Tiffany & Co. in March. With these items complete, the Company began work on the project in April with the aim being to advance the project towards production as quickly as possible. The extensive efforts undertaken and completed in 2011 included:
- Construction of a 9km primary access road to support the ongoing needs of the Project for the long-term
- Clearing of 60km of temporary roads in preparation for the deployment of operational teams to complete the recommended infill and extended drilling programme
- Completion of the initial recommended infill and extended drilling progamme on 390 targets, which due to encouraging results was expanded to 469 targets and lead to the Company’s previously announced 97.5% increase in the basal gravel estimates at the Project
- Subsequent drilling of a total of 558 targets over +/- 400 hectares, allowing the Company to secure data used in the determination of areas for planned additional bulk sampling, upcoming trial-mining exercises, and the location for the immediate construction of the Project’s plant site
- Installation of +/- 4km of high strength, solar powered, electrical security fencing and gates around the areas chosen for trial mining and the construction of the plant site
- Clearing and removal of +/- 4,000 truckloads for the establishment of a quarry in the area selected for trial-mining exercises, and the transport of that material for the construction of the Project’s plant site and dams
- Clearing of +/-5 acres for the construction of the plant site area, along with fresh water, waste, and settling dams
- Completion of civil engineering works, construction of a 5m raised wall around the plant site, and extensive concrete work in preparation for the installation of modular processing plant, final recovery units, and associated offices and workshops
- Design of and preparations for the installation of +/- 13km of water pipelines, along with the installation of a +/- 7km main power-line to the project
With a vast majority of the above projects either complete, or nearing completion by December 31, 2011, the arrival of key operational equipment has also begun with the delivery of a new Terex H6203 power-screen from the Terex manufacturing facilities in Ireland. The H6203 is the largest power-screen in the Terex line with a head-feed capacity of up to 800 tons per hour. The unit is designed to dry screen material directly in the quarry and by removing as much as 45% of the non-diamond bearing material in the quarry, should reduce operational costs and the overall water consumption at the Project over the long-term. Initial testing of this unit has been completed with positive results, and the screening and stockpiling of material to support the upcoming commissioning phase of the modular plant is scheduled to commence in the coming weeks.
In addition to the delivery of the Terex power-screen, the deliveries of components of the Project’s modular processing plant to the site are also underway. The design, construction, and initial testing of the new modular plant was completed at facilities in Kimberley South Africa, with the design aimed at supporting the Company’s initial targeted ramp of up to 10,000 carats per month within 12 months. The plant employs the use of 16′ pre-concentrating pans, along with a Dense Media Separation (DMS) plant, containerized x-ray Flo-Sort machines for the primary hands-off recovery of diamonds and secondary grease system. Due to the modular nature of the plant, additional expansion can be performed as needed in a very cost effective way when desired.
The combined efforts of the work completed in 2011, along with the additional efforts currently underway, are aimed at supporting the further advancement and the initial recoveries of rough diamonds from the Project through the Company’s planned upcoming move to recommended trial-mining exercises at the Project. In conjunction with these efforts, the Company plans to complete further bulk sampling exercises on new areas of the Project to support the filing of a new updated and current NI 43-101 Technical Report for the Project in the coming months, and to assist the Company in arriving at final long-term production decisions for the Project.
Strategic Tiffany & Co. Alliance:
As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with 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. As previously announced, Tiffany & Co, provided the Company with substantial 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. Originally founded in 1837, the Tiffany’s 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 December 31, 2011 Tiffany & Co. operated 246 retail stores and boutiques in the Americas, Japan, Asia-Pacific, and Europe and 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:
On February 28, 2011, Diamcor successfully acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited. The Project consists 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 “Eluvial” basal deposit which is covered by a lower-grade upper “Alluvial” 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.
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, and extensive experience supplying rough diamonds to the world market. 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.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
Phone: (250) 864-3326
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.
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SOURCE Diamcor Mining Inc.