Home       Technology / Education       Events & News       Archives       Designs       e - NewsLetter

Diamcor Mining Inc., (the “Company”) announces the results of the tender and sale of rough diamonds recovered prior to November 9, 2017 from ongoing exercises being performed at the Company’s Krone-Endora at Venetia Project (the “Project”). The Company sold 4,353.91 carats of rough diamonds for gross proceeds of USD $864,546.09, resulting in an average price of USD $198.57 per carat. The lower number of carats tendered and sold is attributable to a reduction in the volume of material being processed due to the previously announced water recovery issues associated with excessively suspensive properties of the very fine kimberlitic clay materials, along with a shorter time frame between tender dates during the quarter.

Despite the limited processing volumes, the Project continued to demonstrate its potential for the recovery of larger rough diamonds. Of the total rough diamonds tendered and sold, 3 individual rough diamonds were in the specials category (+10.8 carats) with the largest being 25.02 carats, 19 individual rough diamonds being over 5 carats in size, and 182 individual rough diamonds being over 2 carats in size. The average dollar per carat of $198.57 for the rough diamonds tendered and sold in the current period increased compared to the previous quarter ended September 30th, 2017, in which the average dollar per carat of rough diamonds sold and tendered was reported as $171.70. The increase in the average dollar per carat is attributable partially to the quality of the 25.02 carat rough diamond tendered and sold, and demonstrates the positive impact that larger rough diamonds can have on the Company’s revenues. In addition, increased attendance at the tenders and demand during the period was reported as having a positive impact on the pricing of certain categories of rough diamonds from the previous quarter.

Operational Update

Insufficient recoveries of water from the Project’s settling dams continues to be the key factor limiting the Company’s ability to operate the Project’s plants at their designed capacities, and the Company remains confident that the previously announced installation of a paste thickening plant will correct this issue once installed. Processing of material at limited volumes will continue in the short-term, however considerable focus is being placed on finalizing the procurement, installation, and commissioning of this item, and once installed, the Company remains confident that processing volumes can be significantly increased. Additional information on the progress of this item will be provided over the coming weeks.

The combined testing, commissioning, and calibration exercises currently underway are designed to support the continued advancement of objectives consistent with the recommendations of the updated NI 43-101 Technical Report (“Updated Technical Report”) filed by the Company on April 28, 2015, and to aid the Company in arriving at initial production decisions for the Project. The recovery of all rough diamonds to date are incidental to the ongoing commissioning and testing exercises performed at the Project. The above-noted testing exercises and incidental recoveries do not form part of the Updated Technical Report and therefore no general grade, price, or quality determination is intended by the Company at this time due to the nature and purpose of the processing of this material.

Warrant Extension

The Company has determined to extend the expiry date of 1,566,800 share purchase warrants (“Warrants”) which are exercisable to purchase up to 1,566,800 common shares in the authorized share capital of the Company at an exercise price of $1.25 per share, from December 30, 2017 to December 30, 2018, with all other terms of the Warrants remaining unchanged. The extension of the expiry date of the Warrants to December 30, 2018 is subject to TSX Venture Exchange approval.