Diamcor Reports 97% Increase in Basal Gravels at Krone-Endora at Venetia Project

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

KELOWNA, B.C., Oct. 11, 2011 /PRNewswire/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the "Company"), is pleased to announce preliminary updates for the Upper Zone and Basal Zone gravels based on the results of the initial drilling efforts which have been completed as part of the recommended drilling programme underway at the Company's Krone-Endora at Venetia Project (the "Project").  The initial drilling efforts were completed on 469 targets, as previously announced, and were aimed at better defining the location, extent and thicknesses of the Upper Zone and Basal Zone gravel units both within the areas initially explored by De Beers and within additional surrounding areas of the Project.    The data collected from the drilling programme was also used to assist in the determination of areas for the Company's planned move to bulk sampling which is the next phase of the recommended work programme. The recommended bulk sampling efforts are designed to test these gravel materials in the various areas for the presence of diamonds and to determine the grade of those materials.

The results of the initial drilling efforts completed were subsequently modeled by the Independent Qualified Person using Datamine modeling software to estimate new tonnage values for the Upper Zone and Basal Zone gravels, and to provide an update on the gravel tonnage estimates which were originally reported in the initial NI 43-101 Technical Report (the "Technical Report") filed by the Company on July 30, 2009.  The original gravel tonnage estimates in that Technical Report were based solely on areas of the Project comprised of approximately 307 hectares on which De Beers had previously performed initial exploration work.  As part of the recommended drilling programme undertaken, the Company performed tighter spacing in-fill drilling on the previously explored areas to better define the locations and depths of the gravel material in those areas.  The Company also completed additional drilling on targets in the areas immediately surrounding these previously explored areas in order to determine the potential extension of the gravel material into these surrounding new areas.  The combined efforts of all drilling to date now cover an area of approximately 540 hectares.

Data from the initial drilling efforts completed by the Company was able to confirm the DeBeers' tonnage estimate for the Upper Zone gravels, the total of which increased by a modest 0.7% from the 2009 estimate, mainly due to a new, and more accurate lower average density calculation.  The tonnage estimate for the Basal Zone gravels, however, increased by a substantial 97.5% from the 2009 estimate, due to the extension of the Basal Zone area to the east, north and west of the original zone defined by the initial exploration work previously completed by De Beers.  A summary of the previously filed gravel tonnage estimate totals, along with the updated gravel tonnage estimates, and differences between the two, appears below (see Table 1).

Table 1 - Updated Gravel Tonnage Estimate Summary

The foregoing values relate solely to the identified gravel material and appropriately do not include any estimates as to grade or any mineral resources at this time.  The grade values reported in the Technical Report in respect of the areas previously explored by De Beers cannot be applied to the additional gravel tonnages identified by Company's initial drilling efforts, as grade values for this additional gravel tonnage will only be established after the Company completes the recommended bulk sampling programme in respect of that additional tonnage.

In addition to the initial 469 targets used in calculating the updated gravel tonnage estimates, drilling efforts are continuing on various additional targets as part of the finalization of the initial recommended drilling programme, as previous drilling results have indicated that the identified gravel material deposit is still open to the south-east, north-west, and west.  Additional drilling is being completed on targets within the De Beers Venetia Mine security fence on the south-east portion of the initial area of interest, and on targets to the west and north-west of the initial area of interest.  These drilling efforts are expected to be completed prior to the end of October.

Using the data from the initial drilling completed, the Company has select several areas (see Figure 1) for its planned upcoming recommended bulk sampling programme.  This recommended bulk sampling programme is also designed as a further extension of the work previously completed by DeBeers, and is aimed at providing further information on grades in the various current and extended areas of the Project, as well as a current average dollar per carat value estimate for the Project.  As noted in previous news releases, extensive site preparations and the delivery of equipment to support the Company's planned move to the recommended bulk sampling programme are also well underway.

"We are very pleased with the significant increase in the estimate of the Basal Zone gravels given these are the type of gravels which have been identified as potentially higher grade zones in previous work completed on the Project," commented Company CEO Dean Taylor.  "These results demonstrate the potential for added growth in the Project, and our efforts are now centered on completing the drilling of the remaining targets in conjunction with the finalization of various preparations in anticipation of our planned move to the recommended bulk sampling programme," added Mr. Taylor.

The combined drilling and bulk sampling programmes are designed to support the filing of a new updated and current NI 43-101 Technical Report for the Project in the coming months, to support the Company's planned move to the recommended trial mining exercises in the short-term, and to assist the Company in arriving at final production decisions for the Project.

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.  As previously announced, Tiffany & Co, provided the Company with substantial 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.  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 January 31, 2011 Tiffany & Co. operates approximately 233 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.

About Krone-Endora at Venetia:

On February 28, 2011, Diamcor successfully acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited.  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 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 rare, higher-grade "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 1,000 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.

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 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.

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, Geologists, and Geophysicists of Alberta ("APEGGA").  Mr. Hawkins has reviewed this press release and approved of its contents.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
[email protected]

Phone:  (250) 864-3326
Website: www.diamcormining.com

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.

Image with caption: "Figure 1 - Bedrock Topography Map and Proposed Bulk Sampling Areas (CNW Group/Diamcor Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20111011_C2885_PHOTO_EN_4318.jpg