Shares Issued and Outstanding:
65,311,488
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Nov. 14, 2019
/CNW/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQB-DMIFF), (the
"Company") is pleased to report net income of $350,676 for the period ended September 30, 2019, a significant increase when
compared to a net loss of ($417,368)
realized during the same period in the prior fiscal year.
During the second fiscal quarter ended September 30, 2019 the Company tendered and sold
3882.82 carats of rough diamonds, generating revenues of
$730,962 (USD $569,059), which resulted in an average price of
(US) $146 per carat. This is a
decrease when compared to revenues of $1,041,470 (USD $726,846) and an average of (US) $278 per carat realized during the same period in
the prior fiscal year in which several larger diamonds in the +10.8
special category were recovered, tendered, and sold. The decrease
in overall sales volumes during the current quarter was the result
of the timing of rough diamond tenders during the current quarter
with the final tender not closing until October of 2019, after the
fiscal quarter, and reduced processing volumes due to contract
heavy equipment reliability issues experienced early in the second
quarter.
Operating expenses in the second fiscal quarter were
($403,929), as compared to
$521,429 incurred during the same
period in the prior year. The Company realized negative operating
expenses during the second quarter for three reasons; reduced heavy
equipment and fuel expenses as compared to the same period during
the previous fiscal year, a management negotiated reduction of
approximately $320,000 to the payable
associated with the Company's previous heavy equipment contractor
and, finally, a significant increase in rough diamond inventory
stock on hand at the end of the second fiscal quarter. The Company
recorded $918,183 in rough diamond
inventory at the end of the fiscal quarter. The Company anticipated
reduced operating expenses during the quarter for the reasons set
forth, however the Company also realized lower expenses as a result
of the improving efficiencies being realized from its new
operational management team and the enhanced operating practices
and procedures being implemented. Lower operating expenses are
expected to continue into the Company's third fiscal quarter ending
December 31, 2019.
General and administrative expenses for the period ended
September 30, 2019 were $793,864, a significant reduction when compared
to $949,329 realized in the same
period during the prior year. Other income and expenses remained
relatively unchanged during the comparative periods.
The Company's primary focus during the second fiscal quarter was
on the processing of concentrate tailings. The efforts being
performed by the Company's newly appointed operational management
team have identified and corrected various key issues experienced
with past processing, which is evident given the quantity and
quality of rough diamonds being recovered during these exercises.
Recently corrected and enhanced operating practices and procedures
provides the potential for increased recoveries on a per ton basis
as the Company transitions back to the processing of material from
the quarry in the coming weeks. In addition to the potential for
increased recoveries of rough diamonds recovered per ton of
material processed, the lower average dollar per carat currently
being realized from the concentrate tailings being processed is
expected to return to higher historical averages as material from
the quarry is processed, as the Company expects a more balanced
historical percentage of rough diamonds in all size fractions to be
recovered.
The Company previously identified issues with past contract
equipment reliability and, in addition to negotiating a reduction
in expenses payable, plans to replace this contractor through the
deployment of new larger and more efficient heavy equipment. The
Company is in advanced stage discussions with several manufacturers
and providers of heavy equipment such as trucks, excavators and
loaders, and expects to finalize arrangements for the deployment of
new equipment to the mine site in the coming weeks. The Company
should not only realize an improvement in the reliability of heavy
equipment, but this change should also increase the overall tonnage
being mined while reducing the operating expenses realized per
tonne mined. The Company will provide additional information on
these discussions in the coming weeks.
The Company's recently filed financial statements for the
quarter ended September 30, 2019 and
accompanying Management Discussion and Analysis can be viewed by
interested parties on SEDAR at www.sedar.com.
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.
