KELOWNA, BC, May 17 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI) (the "Company"), is pleased to announce that the recommended drilling programme at the Company's recently acquired Krone-Endora at Venetia Project (the "Project") has commenced. As previously announced, heavy equipment was deployed to the project shortly after the closing of the acquisition, and approximately 38 kilometers of access roads and additional clearing work required to access the drilling targets has been completed as planned. With this work complete, the initial phase of the drilling programme commenced and approximately 25 of +/-200 targets included in the initial drilling phase have now been drilled.
The drilling targets of the initial phase are located inside the previously identified K1 and Confluence areas, as well as on new areas of the Project located immediately to the East of the K1 area which have not previously been drilled. Drilling within the immediate and surrounding areas of the K1 and Confluence areas are being done at tighter in-fill spacing intervals of 100m x 100m in an effort to better define the known higher-grade basal deposit previously identified by De Beers, and to determine the potential extension and direction of the deposit between these current areas and the existing outer fence-line of Venetia. Drilling of targets further to the east and north of the K1 and Confluence areas will be completed at 200m x 200m spacing to determine the potential extension and location of additional deposits into these areas of the Project.
The diamond bearing deposits on the properties of Krone and Endora have been identified as originating from the higher grounds of the adjacent Venetia kimberlites, and occur in two layers with a combined average total depth of only 15 meters from surface to bedrock. The Company plans to use the results of the low-cost reverse circulation drilling now underway to aid in the determination of the potential extent and location of additional upper and lower basal gravels, and in its selection of areas for the upcoming bulk sampling programme. The completion of the recommended drilling and bulk sampling programmes in the coming months are designed to support the Company's planned filing of a new updated and current NI 43-101 Technical Report for the Project. These programmes will also be used to identify potential areas for the Company's planned move to trial-mining exercises in the near-term, and to assist the Company in arriving at final production decisions for the Project over the long term. The current NI 43-101 Technical Report as filed by the Company on July 30, 2009 was based solely on the areas of the Project which De Beers performed initial work on previously, with a diamond dollar per carat price estimate from 2005.
About Krone-Endora at Venetia:
On February 28, 2011, the Company successfully completed the acquisition of the Krone-Endora at Venetia Project from De Beers. The Project consists 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 310 hectares, a summary of which has been 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 rare, higher-grade lower "Eluvial" basal deposit which is covered by a lower-grade upper "Alluvial" 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 1,000m (1 km) of material from the higher grounds of the adjacent Venetia Kimberlite areas. Based solely on the work completed to date, the current NI 43-101 Technical Report filed provided a current inferred resource estimate of 54,258,600 tonnes of diamond-bearing gravels and 1.3 million carats of diamonds for the initial areas of interest alone. The deposits on Krone-Endora occur in two layers with an average total depth of only 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed, and the potential for near-term diamond production from a known high-quality source. Krone-Endora as well benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.
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. The Company has a well established operational and production history in South Africa, and extensive experience supplying rough diamonds to the world market. 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 quality near-term production based diamond projects such as the Krone-Endora at Venetia Project. For additional information on Diamcor, please visit our website at www.diamcormining.com.
Strategic Tiffany & Co. Alliance:
As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with 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. To expedite the production and supply of rough diamonds from Krone-Endora at Venetia, Tiffany & Co. has also provided the Company with additional financing for the Project. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF. Originally founded in 1837, the Tiffany's 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, 2010 Tiffany & Co. operates 225 retail stores and boutiques in the Americas, Japan, Asia-Pacific, and Europe and 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.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
Phone: (250) 864-3326
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.