Diamcor Expands Drilling Programme and Advances Preparations for Bulk Sampling at Krone-Endora at Venetia
Aug 17, 2011
OTC Disclosure News Service
Kelowna, BC, Canada –
KELOWNA, August 17, 2011 – Diamcor Mining Inc. (TSX-V.DMI / OTCQX-DMIFF) (the “Company”), is pleased to announce that it continues to make excellent progress on the completion of the recommended drilling programme and site preparations for the Company’s planned transition to recommended bulk sampling at its Krone-Endora at Venetia project (the “Project”). In addition to the drilling efforts, which are now in their final stages, approximately +/- 20 employees, consultants and contractors, including heavy equipment, are preparing for the Company’s commencement of the recommended bulk sampling program. Preparations include the establishment and upgrade of access roads throughout the Project, preparations for the installation of an initial water pipeline, preparation of the area selected for the anticipated delivery of the bulk sampling plant, preparation of areas which have been selected for bulk sampling, establishment of operational offices and infrastructure on-site, procurement of equipment necessary for bulk sampling, and the procurement of the bulk sampling plant for delivery to the Project. Further details regarding Company efforts to support the transition to bulk sampling will be released by the Company in the coming weeks.
Drilling Programme Expanded:
The Company initially planned to drill approximately 390 targets on the K1, K3, Confluence, and areas of interest immediately adjacent to these areas of the Project as part of the recommended drilling programme. Due to the encouraging results of the ongoing drilling efforts in identifying additional gravel bearing areas, and the desire to further extend drilling into new areas, the Company expanded the total number of drilling targets and has now successfully completed the drilling of 469 targets. In addition to the drilling completed to date, the Company plans to further extend drilling to include an additional +/- 50 targets in new areas to the north east of the K3 and Confluence areas. All targets drilled to date have been in areas outside of the current fence-line of Venetia. In conjunction with the drilling of these extended targets outside the current fence line of Venetia, the Company also plans to complete the drilling of various targets inside the fence-line of Venetia in the coming weeks. The drilling of targets inside the fence-line of Venetia is aimed at aiding in the identification of potential extensions of the known deposits from the K1 area through the areas to the East of K1 where drilling has now been completed up to the Venetia fence-line. The Company is targeting the completion for all remaining drilling prior to the end of the third calendar quarter.
Data gained from the combined drilling efforts is designed to aid the Company, and independent geologists, in determining the depths of the underlying bedrock throughout the various initial areas of the Project being drilled, to provide additional information on both the known lower-grade upper gravels and higher-grade basal deposits in the areas of the Project which were previously identified by De Beers, and to identify potential extensions and the directions of any additional deposits into new areas from the proposed source of the deposits, the adjacent Venetia kimberlites. Data is also being used to identify the target areas for the Company’s recommended bulk sampling programme.
The combined results of the recommended drilling and bulk sampling programmes are designed to support the filing of a new updated NI 43-101 Technical Report (the “NI 43-101 Report”) for the Project in the coming months. These programmes will also be used to aid in the recommended advancement of the Project to trial mining exercises in the near-term, and to assist the Company in assessing a production strategy 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 the average diamond dollar per carat price estimate in that report dating from 2005. In addition to further establishing grades and other relevant information in areas being targeted for bulk sampling, the Company anticipates that the rough diamonds recovered during bulk sampling will allow the Company and independent geologists to establish the current rough diamond dollar per carat average for the Project.
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 of the “Eluvial” deposit) and erosion (in respect of 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 an 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 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 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
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.
WE SEEK SAFEHARBOUR
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.