Sep 20, 2019

Diamcor Reports Increase in Rough Diamond Recoveries Under New Operational Management Team

Diamcor Mining Inc. has said that the success of current exercises being performed by the Company’s new operational management team at it’s Krone-Endora at Venetia Project has led to an increase in recovery of rough diamonds with more stones being shipped to Antwerp for sale through tender.

During the current quarter, the Company said it had completed tender and sale of 3,759.62 carats of rough diamonds, as well as delivered an additional 4,825 carats for tender in Antwerp in the coming weeks.

The exercises underway included the evaluation of historical processing practices and procedures at the Project. One of these is the processing of historical tailings and previously stockpiled material which has helped identify several past deficiencies, the steps to correct them and other potential enhancements that should be implemented into new standard operating practices and procedures.

Of the total 8,584.62 carats of rough diamonds delivered, an initial 3,759.62 carats of rough diamonds sold generating total gross proceeds of US$ 569,059.18, resulting in an average price of US$ 151.36 per carat.

The slightly lower than historical average dollar per carat in the tender may be due to the higher percentage of smaller, lower quality rough diamonds may be recovered during the exercises being performed as well as current price weaknesses in certain categories of the rough diamond market, the Company said. Diamcor anticipates the average price per carat will improve to historical levels as the processing of newly mined material begins through the now refined process facilities.

Despite the expected increase in the percentage of smaller diamonds recovered during the current exercises, various larger gem quality rough diamonds in the +2.0 – 10.0 carat range were also recovered, along with a gem quality rough diamond weighing 20.66 which was tendered and sold, and a 28.45 carat gem quality rough diamond which will be offered in the Company’s next tender, Diamcor said. The recovery of these sizes of rough diamonds confirms some of the inherent issues with previous processing operations, and the potential for improved results moving forward.

“I am very pleased with the results being delivered by our new operational management team, who have not only confirmed their ability to identify past inefficiencies in both our processing facilities and operations, but also demonstrate their ability to correct these issues and enhance operations moving forward”, noted Diamcor CEO Dean Taylor. “We believe the current efforts, focus, and results will benefit the Project in a meaningful way moving forward,” he added.

Diamcor also announced that all definitive documentation, filings, and regulatory approval for the amended loan financing have now been received. Subscriptions received for the amended loan financing resulted in aggregate gross proceeds of CDN$ 1,188,000.

The proceeds from the Financing will be used to support the continued advancement of the work programmes currently underway, to support the deployment of additional operational equipment aimed at increasing processing volumes at the Project, to provide the Company with additional working capital to offset the time frames associated with the tendering and sale of rough diamonds in Antwerp, and for general and corporate purposes.