Diamcor Increases Revenues for Third Consecutive Quarter in Fiscal 2014
TSX.V Symbol (DMI)
KELOWNA, BC, Jan. 13, 2014 /PRNewswire/ - Diamcor Mining Inc. (TSXV:DMI), (the "Company"), an emerging producer of rough diamonds, has continued to make excellent progress on the advancement of the Company's Krone-Endora at Venetia Project ("Krone-Endora" or the "Project"), in anticipation of its planned move to 24/7 operations. The Company also reported its third consecutive increase in quarterly revenues in its fiscal year 2014 from testing and commissioning exercises at the Project.
During the third quarter of fiscal 2014 ended December 31, 2013, the Company completed two sales of rough diamonds. The majority of the rough diamonds sold were recovered in conjunction with ongoing testing and commissioning exercises on the lower-grade upper zone material in the +1.2mm to -12.0mm size fractions, with the remaining diamonds recovered from limited processing of material in the +12.0mm to -26.0 mm size fractions.
A total of 3,955 carats of rough diamonds were sold in the third quarter of fiscal 2014, generating total proceeds of $1,431,288.00 (US), or an average of $361.81 (US) per carat. This represents an increase in total quarterly proceeds; compared to $856,119.02 (US) for the second quarter of fiscal 2014 ended September 30, 2013, and $415,495.03 (US) for the first quarter of fiscal 2014 ended June 30, 2013. Total proceeds for the third quarter of fiscal 2014 included proceeds from the previously announced sale of the Company's first gem quality rough diamond in the +50 carat size category, a 91.72 carat octahedron diamond which sold for $817,920.00 (US), or $8,917.58 (US) per carat. As of December 31, 2013 the Company had approximately 1,500 additional carats of rough diamonds which will be tendered for sale in the current quarter, which is the Company's fourth quarter of fiscal 2014.
During the third quarter of fiscal 2014, in conjunction with the ongoing testing and commissioning exercises, the Company also completed further development and expansion work on the Project's in-field quarrying and dry-screening plant. This included the installation of a higher capacity resonance screening system supplied by Dabmar Industries, along with expanded conveyor systems and structures designed and fabricated by the Company to enhance the efficiency and capacity of the dry-screening plant. Additionally, the Company made enhancements to the main processing plant including the installation of greater capacity de-watering screens and a dedicated crushing cycle which will improve the effectiveness of processing materials in the larger size fractions.
To date, the Company has tendered and sold a total of 15,411.74 carats generating total proceeds of $3,213,731.05 (US), or $208.52 (US) per carat on average, from the ongoing commissioning and testing exercises performed at the Project. It should be noted that the above testing recoveries, and sales, do not form part of the initial NI43-101 Technical Report filed by the Company in July 30, 2009, and thus 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.
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, extensive experience supplying rough diamonds to the world market, and has established a long-term strategic alliance with world famous Tiffany & Co. 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.
About the Tiffany & Co. Alliance
As announced on March 29, 2011, 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 substantial financing to advance the Project as quickly as possible. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF. Founded in 1837, the Tiffany 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 October 31, 2013, Tiffany & Co. operated 283 stores and boutiques in the Americas, Japan, Asia-Pacific, Europe and the United Arab Emirates, and also 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
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. 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 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 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. Since acquiring Krone-Endora the Company has completed the construction and installation of extensive infrastructure at the Project, along with the installation of a purpose built modular processing plant, and extensive quarrying and in-field screening operations. Commissioning of the processing plant is now complete, and the Company's current efforts and final refinements to the quarry and in-field screening operations are designed to be a continuation of the ongoing advancement of the Project, and part of the Company's final preparations in anticipation of a planned move to 24/7 operations in the near future.
Qualified Person Statement:
Mr. James P. Hawkins (BSc., 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
Investor Relations Contact:
Liolios Group, Inc.
Tel (949) 574-3860
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.