KIM Kimcor

RNS Number:5157Z
KimCor Diamonds plc
09 March 2006


                              KIMCOR DIAMONDS PLC

                                   (AIM: KIM)

                PLANT CONSTRUCTION UPDATE - BELLSBANK OPERATIONS


KimCor Diamonds plc ("KimCor" or the "Company"), the diamond producer and
exploration company with properties in South Africa, is pleased to announce that
construction of the main processing plant at Bellsbank commenced prior to the
Company's admission to AIM. This plant succeeds the pilot plant that was, until
January 2006, producing diamonds from test quantities of dump material.

The Company, which successfully raised #3.35m through an institutional placing
and was admitted to AIM on 6 March, has completed the construction of the stage
one decking on the main plant as well as commencing construction of the six 14ft
diamond recovery pans. These pans will process approximately 60,000 tonnes of
diamondiferous kimberlite dump, tailing material per month generating up to
50,000 Cts/yr at an average operating unit cost of US$2.30 per tonne. In
addition, the Company has been able to construct footings and steelwork required
for the installation of a 9m long rod mill to be incorporated into the plant
circuit. The construction work has been funded largely from cash flow generated
by the recovery and sale of diamonds during the pilot plant trials.  Production
at the plant is expected to commence in early August.

Work has also advanced on the final recovery section of the plant, which is now
fully operational and can meet the capacity requirements of the project post
commissioning. Further budgeted expenditure is required to install the necessary
equipment to upgrade security in this section.

Diamond production around Bellsbank has a long history of producing diamonds of
exceptional clarity and quality. The directors believe that gems of a similar
quality will be produced from the main plant.  The board of directors continues
to examine options for capitalising on these qualities.

Commenting on progress with the construction, Martyn Churchouse, Chief Executive
Officer, said: "I am pleased to announce that construction work commenced prior
to the Company's admission on AIM and continues apace. Decommissioning of the
pilot plant and its proposed relocation to commence bulk sampling on the
Company's Van Zoelens exploration property, has eased the congestion that was
being experienced and allowed acceleration of the construction of the main
plant. The fact that mine management have been able to proceed with main plant
construction even before the Company commenced trading on AIM is a reflection of
the success of the pilot plant trials and the cash flow generated. Full scale
production will increase revenue generation during the current year".


                                   ---ends---


Enquiries:

KimCor Diamonds plc                     Tel: 020 7318 5780
Martyn Churchouse
Manish Kotecha
www.kimcordiamonds.com

Westhouse Securities LLP                Tel: 020 7601 6100
Bill Staple
Richard Morrison

Bishopsgate Communications Ltd          Tel: 020 7430 1600
Dominic Barretto
Nick Rome



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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