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TSXV:DMI
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KELOWNA, BC, Aug. 9, 2018 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI / OTCQB-DMIFF), (the "Company") is pleased to announce the recovery of six rough diamonds in the special (+10.8 carats) category.  The diamonds were recovered from material processed through the Company's recently updated facilities. The special category rough diamonds recovered include: one high quality 18.45 carat gem octahedron rough diamond, two gem quality rough diamonds weighing 18.56 and 14.71 carats respectively, and three non-gem quality rough diamond weighing 21.92 carats, 17.32 carats, and 15.84 carats. The recoveries are the result of limited processing completed during part of July and the first week of August.  In addition to the recovery of these special category diamonds, ~2,400 additional carats of rough diamonds were recovered. The initial modifications completed on the Company's In-field dry-screening plant were focused on improving the crushing of larger material to reduce the amount of fine kimberlitic clay material reporting to the Company's Main Treatment Plant, and by doing so, reduce the previously announced water recovery issues being caused by these kimberlitic clays. 

"We are very pleased with the results of the initial modifications made to the processing plants, as well as with the number of larger diamonds recovered on very limited volumes", noted Diamcor CEO Dean Taylor. "With these initial modifications meeting or exceeding expectations, our focus will now shift to running increasing volumes in the coming weeks, and to completing the installation of the paste thickener system to allow for us to further increase processing volumes for the long term", added Mr. Taylor.

Financing Update

The Company is also pleased to provide an update on the status of the previously announced Revised Offering.  Despite the current lack of focus on the resource sector in the capital markets, the Company has received commitments from various parties and anticipates closing the remaining balance of the Revised Offering in a Second and Final Tranche to be finalized in the very short-term, subject to the receipt and finalization of subscription documentation from various parties by the Company.  As noted above, the proceeds from the First Tranche of the Revised Offering have now allowed the Company to reduce the impact of the insufficient water recoveries from the Project's settling dams through the installation of additional screening equipment, the second tranche of the funding will allow the Company to incorporate the paste thickening technology that will be used to further increase processing volumes at the Project for the long-term.

The planned Second and Final closing of the balance of the Revised Offering is subject to the approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required.  Additional securities issued pursuant to the Revised Offering will be subject to a hold period of four months plus one day following the date of their issuance. 

The securities sold in the Revised Offering have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration under such Act or an applicable exemption from such registration requirements.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

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 QB International under the symbol DMIFF.  The Company has a well-established operational and production history in South Africa and extensive prior experience supplying rough diamonds to the world market. 

About the Tiffany & Co. Alliance

The Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of 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 at then current prices to be determined by the parties on an ongoing basis.  In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with financing to advance the Project. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF.  For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

About Krone-Endora at Venetia

In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting 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.  On September 11, 2014, the Company announced that the South African Department of Mineral Resources had 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 "Alluvial" basal deposit which is covered by a lower-grade upper "Eluvial" deposit. The deposits are proposed to be the result of the direct-shift (in respect to the "Eluvial" deposit) and erosion (in respect to the "Alluvial" deposit) of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with 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. 

Qualified Person Statement:

Mr. James P. Hawkins (B.Sc., P.Geo.), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta ("APEGA").  Mr. Hawkins has reviewed this press release and approved of its contents.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Tel (250) 864-3326
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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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.

SOURCE Diamcor Mining Inc.

Copyright 2018 Canada NewsWire

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