TSX.V Symbol (DMI)
KELOWNA, BC, April 11, 2016 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF), (the "Company") is pleased to announce that its application for a Water Use License (the "WUL") to support long-term diamond mining operations at the Company's Krone-Endora at Venetia Project (the "Project") has been approved and granted by the South African Department of Water and Sanitation (the "DWAS"). The granted WUL provides the Company with the required approval for all requested items in its application.
"We are very pleased to have successfully secured this WUL for the Project," said Mr. Dean H. Taylor, Chief Executive Officer of Diamcor. "The granting of the WUL represents the culmination of a multi-year effort in the ongoing advancement of our Project, marks the achievement of yet another significant milestone, further de-risks the Project, and most importantly, provides us with the desired allocation of water to support the targeted design capacity of the processing facilities installed at the Project for the long-term. Mr. Taylor added, "I would like to personally thank everyone involved at both the regional and national DWAS offices, our Project Management team, and the various consultants involved for their collective contributions towards securing this critical element required to advance the Project." With the granting of this WUL, the Company's focus will now quickly shift to finalizing the additional infrastructure required to support the WUL, with that work expected to be completed within the current fiscal quarter.
The WUL approved and granted by DWAS provides the Company with the requested ability to extract 410,148 cubic meters of water per year from seven boreholes, with that amount aimed at supporting the Project's envisioned long-term processing target of 300,000 tons per month. The WUL is valid for a period of 15 years from the date of issuance, subject to standard reporting and compliance requirements, and may be reviewed at intervals of not more than five years. The Company anticipates that, upon completion of the additional infrastructure related to the WUL, the resulting additional water resources will enable the Company to complete the testing and evaluation of the full targeted design capacity of its processing facilities and to compile key data from these higher processing rates which will assist the Company in arriving at an initial production decision.
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 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 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.
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
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.