Shares Issued and Outstanding:
54,659,623
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC,
Dec. 13, 2017
/CNW/ - Diamcor Mining Inc., (the "Company") announces the
results of the tender and sale of rough diamonds recovered prior to
November 9, 2017 from ongoing
exercises being performed at the Company's Krone-Endora at Venetia
Project (the "Project"). The Company sold 4,353.91 carats of rough
diamonds for gross proceeds of USD $864,546.09, resulting in an average price of USD
$198.57 per carat. The lower number
of carats tendered and sold is attributable to a reduction in the
volume of material being processed due to the previously announced
water recovery issues associated with excessively suspensive
properties of the very fine kimberlitic clay materials, along with
a shorter time frame between tender dates during the
quarter.
Despite the limited processing volumes, the Project
continued to demonstrate its potential for the recovery of larger
rough diamonds. Of the total rough diamonds tendered and
sold, 3 individual rough diamonds were in the specials category
(+10.8 carats) with the largest being 25.02 carats, 19 individual
rough diamonds being over 5 carats in size, and 182 individual
rough diamonds being over 2 carats in size. The average
dollar per carat of $198.57 for the
rough diamonds tendered and sold in the current period increased
compared to the previous quarter ended September 30th, 2017, in which the
average dollar per carat of rough diamonds sold and tendered was
reported as $171.70. The
increase in the average dollar per carat is attributable partially
to the quality of the 25.02 carat rough diamond tendered and sold,
and demonstrates the positive impact that larger rough diamonds can
have on the Company's revenues. In addition, increased
attendance at the tenders and demand during the period was reported
as having a positive impact on the pricing of certain categories of
rough diamonds from the previous
quarter.
Operational Update
Insufficient recoveries of water from the Project's
settling dams continues to be the key factor limiting the Company's
ability to operate the Project's plants at their designed
capacities, and the Company remains confident that the previously
announced installation of a paste thickening plant will correct
this issue once installed. Processing of material at limited
volumes will continue in the short-term, however considerable focus
is being placed on finalizing the procurement, installation, and
commissioning of this item, and once installed, the Company remains
confident that processing volumes can be significantly
increased. Additional information on the progress of this
item will be provided over the coming weeks.
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.
Warrant Extension
The Company has determined to extend the expiry date of
1,566,800 share purchase warrants ("Warrants") which are
exercisable to purchase up to 1,566,800 common shares in the
authorized share capital of the Company at an exercise price of
$1.25 per share, from December 30, 2017 to December 30, 2018, with all other terms of the
Warrants remaining unchanged. The extension of the expiry
date of the Warrants to December 30,
2018 is subject to TSX Venture Exchange
approval.
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.
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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.