Shares Issued and Outstanding:
65,311,488
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Oct. 21, 2019 /CNW/ - Diamcor Mining Inc.
(TSX-V.DMI / OTCQB-DMIFF), (the "Company") is pleased to announce
the results of its first tender and sale in the Company's third
fiscal quarter ending December 31,
2019. In this first tender, the Company sold 4,033.01 carats
of rough diamonds. The Company has delivered an additional
6,369.00 carats which it expects to sell at a second tender in
Antwerp in November. A final
tender of the Company's third fiscal quarter is tentatively planned
for December. The total rough diamonds expected to be
delivered and tendered in the Company's third fiscal quarter
represents an increase when compared to 3,882.82 carats delivered
and tendered in the Company's second fiscal quarter ended
September 30, 2019.
The continued increase in the total rough diamonds tendered,
delivered and sold is further confirmation of the positive impact
of the Company's new operational management team and the exercises
being performed to remedy past operating deficiencies and implement
enhanced long term operating practices and procedures, at the
Company's Krone-Endora at Venetia Project (the "Project").
As part of the evaluation and analysis underway, the
processing of historical tailings and previously stockpiled
material is expected to continue for the coming weeks. The
exercises underway are also expected to provide the short-term
benefit of reducing operating costs associated with heavy equipment
and fuel, and will support the planning underway for the deployment
of new larger equipment in the near-term to support the Company's
planned increase in processing volumes at the Project with the
resumption of normalized quarry mining operations.
The 4,033.01 carats of rough diamonds sold in the first tender
of the current quarter generated total gross proceeds of USD
$424,072.44, resulting in an average
price of USD $105.15 per carat. The
Company anticipated this lower than historical average dollar per
carat in the tender due to the expectation that a higher percentage
of smaller, lower quality rough diamonds may be recovered during
the exercises being performed. Price weaknesses in certain
categories of the rough diamond market also contributed, to a
lesser extent, to the lower dollar per carat average
achieved. However, the Company remains confident the average
price per carat will improve to historical levels as the processing
of mined material begins through the refined processing facilities.
Despite the percentage of smaller diamonds recovered from the
current exercises, various larger gem quality rough diamonds in the
+2.0 – 10.0 carat range also continue to be recovered. The
recovery of these sizes of rough diamonds continues to confirm the
issues associated with previous processing operations, and the
potential for improved results as mining operations return to the
processing of material from the quarry.
"I continue to be very pleased with the results being
delivered by our new operational management team. The current
results clearly demonstrate that many of the historical issues
hindering operations have been corrected, so our focus can shift
from assessment and refinement, to the preparation for our
return to the mining of material from the quarry at increased
volumes", noted Diamcor CEO Mr. Dean
Taylor. "Considering that the results from current
exercises are the result of the re-processing of material
previously processed and stockpiled, we are very optimistic given
that, effectively, these results can be combined with historical
recoveries and results associated with the same material for
planning purposes going forward", added Mr. Taylor.
The Company is pleased to announce that it has appointed Dr.
Kurt Petersen as the Company's
Managing Director of Operations for South Africa. Dr.
Petersen has 20 years experience in the diamond industry and
extensive knowledge and experience in the areas of process
modelling and simulation. He has worked with and consulted to some
of the diamond industry's leading companies and is highly regarded
and experienced in the design of diamond plants, as well as the
optimization of recovery performance and operational processes.
Granting of Options
The Company also reports that it has granted incentive stock
options ('Options") to purchase an aggregate 6,500,000 common
shares ("Shares") to certain officers, directors, employees, and
consultants pursuant to the Company's 20% fixed stock option plan
(the "Stock Option Plan"). All Options are exercisable at a
price of $0.11 per Share, for a
period of five years expiring on October
21, 2024. No shares acquired upon exercise of the
Options may be traded prior to February
22, 2020. The Company's last issuance of options was
on March 21, 2016 and with today's
issuance the Company now has total Options issued to purchase an
aggregate of 9,450,000 Shares at an average exercise price of
$0.39 per share.
Under the Company's Stock Option Plan, as approved by receipt of
disinterested shareholder approval on December 18, 2018 and subsequently accepted by
the TSX Venture Exchange on January 31,
2019, the Company is authorized to issue Options to purchase
an aggregate 12,777,177 Shares. Options granted were in accordance
with Policy 4.4 of the TSX Venture Exchange and the terms and
conditions of the Company's Stock Option Plan.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publicly 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
publicly 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.
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SOURCE Diamcor Mining Inc.
