KIM Kimcor

RNS Number:7551F
KimCor Diamonds plc
16 October 2007




                              KIMCOR DIAMONDS PLC
                          ("KimCor" or the "Company")
                                        
                              NEWLANDS MINE UPDATE


 Positive results from Newlands bulk sampling programme reveal scope to open up
         new production sites at the mine and increase production rates


KimCor Diamonds plc, the mid-tier diamond producer following the recent
acquisition of Dwyka Diamonds Holdings ("DDH"), is pleased to announce that bulk
sampling at Newlands Mine has returned encouraging results from a new kimberlite
target, Blow 3, located 60 km NW of Kimberley in the Northern Cape, South
Africa.

Bulk sampling results for Blow 3

   * The new shaft development has provided access to Blow 3, a kimberlite
     bearing structure located close to the current mining site on Blow 2;
   * A 6,310 tonne bulk sample has returned an average recoverable grade of
     19.41cpht;
   * Based on assessment to date, Blow No3 has an inferred resource of
     approximately 76,000 tonnes to a depth of 100m only and a total of 14,751ct
     recoverable;
   * Further development is underway to provide additional mining faces on
     Blow 3 with a view to further increases in total mine production;
   * In light of the positive results of the programme, the Board is reviewing
     a proposed capital programme that will incorporate the newly accessed
     resources.

Production is currently generated from Blow No2. Bulk samples have been taken
and processed from Blow No3, a diamond bearing kimberlite body located along a
fissure system that connects the five known blows at Newlands Mine. Blow No3 is
located approximately 600 metres southwest of Blow No2.

A 30 metre deep shaft has been sunk in the country rock adjacent to Blow No3 and
underground development excavated around the margin of the structure that has
both defined the limits of the diamondiferous kimberlite and provided access to
collect bulk samples. To date, a total of 6,310 tonnes of kimberlite ore has
been mined, hoisted and processed, returning an average recoverable grade of
19.41cpht. This grade was derived from the processing of both primary ore and
re-processing of coarse tailing material from the same primary ore source
material.

The average recoverable grade compares favourably with the inferred resource
estimated grade for the Blow of 21cpht. The Directors plan to continue bulk
sampling the kimberlite body whilst extending underground development in order
to allow for the upgrade of the resource from an inferred - indicated to a
mineable resource category and provide additional working faces that will allow
for a further increase in production for the Mine.

Based on assessment to date, Blow No3 has an inferred resource of approximately
76,000 tonnes to a depth of 100m only and a total of 14,751ct recoverable. At
current production levels, this tonnage adds to the life of the mine by a
further one and a half years. The kimberlite structure remains open at depth.

Martyn Churchouse, Chief Executive, commented, "Currently production is focussed
exclusively on Blow 2 and it is the Company's intention to confirm the viability
of Blow 3 as a priority to provide for the medium to long-term growth of the
Newlands mine.

"Kimberlite mineralisation in Blow 3 is located close to the surface and bulk
sample results continue to return grades in line with expectations. As such
there is scope to open up new production sites at the mine and increase
production rates. The Company will inform and update shareholders as soon as a
decision has been taken and the level of expansion and its impact on Group
diamond production has been agreed upon".

                                   ---ENDS---


Enquiries:

KimCor Diamonds plc                 Tel: 020 7290 1400
Martyn Churchouse

Strand Partners Limited             Tel: 020 7409 3494
Simon Raggett
Warren Pearce

Bishopsgate Communications Ltd      Tel: 020 7562 3350
Maxine Barnes
Nick Rome




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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