TSX.V Symbol (DMI)
KELOWNA, BC, Sept. 11, 2014 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF), (the "Company") today reports that the South African Department of Mineral Resources has granted a Mining Right for the Krone-Endora at Venetia Project (the "Project"). The Mining Right has a 30 year term and grants the Company the sole and exclusive right to mine and recover diamonds over areas initially targeted by the Company 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 Project is located directly adjacent to De Beers' flagship Venetia Diamond Mine in South Africa, and the Project's associated deposits have been identified as being the result of the direct-shift and erosion of material from the higher grounds of the adjacent Venetia Kimberlite areas.
"This is a significant achievement for the Company, our Black Economic Empowerment Partner, the South African Department of Mineral Resources, local government, and the people in these areas that have and will continue to benefit from the economic development associated with this Project," commented Mr. Dean Taylor, Chief Executive Officer of the Company. "With the mining right in place, we look forward to advancing the Project to the next stages of development, and in so doing create value for all stakeholders while creating new direct and indirect jobs that contribute to the socio-economic development of the Limpopo region and South Africa in general," added Mr. Taylor.
By way of background, the Company was selected by DeBeers to acquire the Project following an extensive competitive proposal and review process that commenced in 2008. The Company closed the Project acquisition in February of 2011 through its South African subsidiary, DMI Minerals South Africa (Proprietary) Limited ("DMI Minerals"). DMI Minerals is 70% owned by the Company, and 30% owned by the Company's Black Economic Empowerment partner, Nozala Investments (Proprietary) Ltd, ("Nozala"). Nozala is a broad-based 100% women-owned business entity with an estimated 500,000 rural women shareholders. Shortly after finalizing the acquisition, the Company entered into a long-term strategic alliance, inclusive of supply and financing components, with world famous premier luxury jewellery and specialty retailer, New York based Tiffany & Co.
To date, the Company has financed, developed and completed the design, construction and installation of extensive infrastructure at the Project in support of the Project's advancement. The near surface nature of the deposits provide the potential for a low-cost mining operation with near-term diamond production from a known high-quality diamond source, at a critical time in the diamond sector.
The Company also reports that it plans to file an updated NI43-101 technical report in the near future and this updated NI43-101 technical report will incorporate and expand on the extensive infrastructure development work achieved to date at the Project, as well as other relevant data available to this point. The current NI43-101 was prepared and filed in 2009 as part of the acquisition process. In conjunction with further advancement of the Project, the Company plans to complete additional bulk sampling and exploration exercises on areas, including those areas surrounding the current areas of focus, the results of which will be incorporated into subsequent NI43-101 report(s).
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 prior operational and production history in South Africa, extensive prior 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 traditional 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 April 30, 2014, Tiffany & Co. operated 292 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 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 roads, water pipelines, and power infrastructure at the Project, along with the design and installation of a purpose built modular processing plant, and an extensive quarrying and in-field screening plant. The Company's current efforts are designed to be a continuation of the ongoing advancement of the Project, and as part of the Company's preparations for an ultimate decision to move from bulk sampling and trial mining exercises to full scale mining operations.
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