Diamcor Completes Drilling of Initial Phase Targets at Krone-Endora at Venetia Project

TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)

KELOWNA, BC, June 29, 2011 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the "Company"), is pleased to announce that it has now completed drilling the initial phase targets of its recommended drilling programme at the Company's recently acquired Krone-Endora at Venetia Project (the "Project"). The Company previously announced the initial phase of drilling had commenced on May 17, 2011, and can now report that approximately 230 targets have now been completed on schedule, and on budget as planned. The drilling targets in this initial phase were 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 had not previously been drilled. These drilling efforts were aimed at collecting data 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.

With this initial phase of drilling now complete, the Company is now proceeding with the drilling of targets associated with Phase 2 of its recommended drilling programme. The Company plans to use the results of both the initial phase of drilling in conjunction with the additional drilling efforts now underway to further aid in determining the potential extent and location of additional upper and lower basal gravels to other portions of the Project, and for the selection of areas for the Company's planned upcoming bulk sampling programme. The combined drilling and bulk sampling programmes are designed to support the filing of a new updated and current NI 43-101 Technical Report (the "NI 43-101 Report") for the Project in the coming months. These programmes will also be used to identify 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 on which De Beers previously performed initial work, with a diamond dollar per carat price estimate from 2005.

The Company is also pleased to inform investors and interested parties that a new updated corporate video on the recent efforts of Diamcor has now been posted on the Company's website, and can be accessed at the following link http://diamcormining.com/investors/corporate_video/.

About Krone-Endora at Venetia:

On February 28, 2011, Diamcor 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, 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 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

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.