Resource World Magazine

J U N E / J U L Y 2 0 1 7 www.resourceworld.com 23 Diamcor posts sparkling rough diamond tender results by Ellsworth Dickson K elowna, British Columbia-based Diamcor Mining Inc. [DMI-TSXV; DMIFF-OTCQX] recently announced impres- sive results of its second tender and sale of rough alluvial/ eluvial diamonds from the processing of material in the +1.0 mm to -45.0 mm size fractions through the newly expanded facili- ties at its 70%-owned Krone-Endora at Venetia Project, northeast South Africa. The remaining 30% interest is held by Nozala Investments (Pty) Ltd. Total initial NI 43-101 inferred resources stand at approximately 1.3 million carats. In this second tender of the current quarter, 3,265.07 carats of rough diamonds were sold for gross proceeds of US $702,635.70 for an average price of US $215.20/carat. The tender included the sale of three rough diamonds in the specials category (+10.8 carats): a 12.80-carat, a 12.89-carat gem quality, and a 13.51-carat rough diamond. On April 10, Diamcor reported an initial tender and sale of 2,900.62 carats of rough diamonds from its newly expanded facilities, which generated gross proceeds of US $810,106.26 for an average price of US $279.29 per carat. That tender included the sale of four rough diamonds in the specials category (+10.8 car- ats), all of which were gem quality: a 12.13-carat, a 15.46-carat, a 17.97-carat, and a 29.1-carat diamond. This brings the total rough diamonds tendered and sold from processing through the newly expanded facilities to 6,165.69 carats, with seven individ- ual rough diamonds being in the specials category (+10.8 carats), generating gross proceeds of US $1,512,741.96 for an average price of US $245.35/carat. The company plans to complete a third tender and sale prior to the end of the current quarter. "We are very pleased with the initial results from our new facil- ities, and believe they demonstrate the positive impact that the crushing and inclusion of larger material up to 45.0 mm can have on recoveries," Dean Taylor, President and CEO, told Resource World. "While we are obviously pleased with the recovery and number of special rough diamonds (+10.8 carats), we believe the current increase being seen in the average dollar per carat is as much the result on an overall increase in the middle rough dia- mond size ranges from the crushing of the larger calcretized balls of material which are typical of the higher grade, lower portion of the deposit." Taylor added, "We have always been aware of the potential for even much larger diamonds, as we saw in early processing with the unexpected recovery of a 91.7-carat diamond during plant development, and with processing levels increasing and our dedicated larger diamond recovery circuit now working, we are watching that area closely with optimism. We feel confident we can continue to refine things even further in the quarter, and with reliability and calibration now essentially complete, our shift will focus to increasing volume to provide us with the data needed to aid us in arriving at an initial production announcement. Testing, commissioning and calibration of the newly expanded facilities continued to progress well during the quarter, with overall increases in processing volumes and reliability now con- sistently being achieved. The project's expanded sorting facilities are operating as envisioned, with no major issues to report in that area. Diamcor has a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of New York- based Tiffany & Co. [TIF-NYSE], 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. Tiffany & Co. Canada also provided Diamcor with financing to advance the project. In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines, consisting of the prospecting rights over the farms Krone 104 and Endora 66, directly adjacent to De Beers' flagship Venetia diamond mine. On September 11, 2014, Diamcor announced that the South African Department of Mineral Resources granted a mining right for the Krone-Endora at Venetia Project 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 deposits which occur on the properties of Krone and Endora have been identified as a higher-grade allu- vial basal deposit which is covered by a lower-grade upper eluvial deposit (not transported by water). n A spectacular 91.7-carat rough octahedron diamond recovered from Diamcor Mining's Krone-Endora at Venetia Project in South Africa. Photo courtesy Diamcor Mining Inc.

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