Diamcor Expands Drilling Programme and Advances Preparations for Bulk Sampling at Krone-Endora at Venetia
KELOWNA, BC, Aug. 17, 2011 /CNW/ --
TSX.V Symbol (DMI)
OTCQX Symbol (DMIFF)
KELOWNA, BC, Aug. 17, 2011 /CNW/ - 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
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
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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Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Phone: (250) 864-3326
Website: www.diamcormining.com