KIM Kimcor

RNS Number:2331A
KimCor Diamonds plc
23 March 2006


                                                                   23 MARCH 2006

                              KIMCOR DIAMONDS PLC

                                   (AIM:KIM)

                         ANALYSIS OF PILOT PLANT TRIALS


KimCor Diamonds plc ("KimCor" or the "Company"), the diamond producer and
exploration company with properties in South Africa, is pleased to announce that
it has completed an analysis of data from the pilot plant trials at the
Bellsbank Dump Reclamation project.


A total of 4,903 tonnes of tailing material was processed from representative
areas of the diamondiferous tailings dumps at Bellsbank, between July 2005 and
January 2006. The average recoverable grade from these samples was 15.8 cpht.


This grade is significantly higher than the estimated overall recoverable grade
of 6.5 cpht that was quoted by AMEC, in the competent person's report on
Bellsbank, which was written for the purposes of the Company's admission to AIM.


Although the grades achieved to date are significantly higher than the
previously indicated grades, it is worth noting that grade estimation of dump
material is extremely difficult and cannot be done with a high degree of
confidence without the full treatment of samples so large as to be
impracticable.


However, these results suggest that the overall estimated recovery grade of
6.5cpht undervalues KimCor's dump assets at Bellsbank. The total tonnage of the
Bellsbank Tailings resource is approximately 3.0 million tonnes. The resource is
supplemented by a further 833,000 tonnes of dump material which AMEC has
verified, including tailings, rock dumps and milled concentrates other than
those found in the main Bellsbank project dumps.


Sales figures for the larger stones that were recovered (6-6.5cpht) averaged a
price of between US$150 and US$180 per carat, which was considered a reasonable
return allowing for a sales discount owing to the small volume of stones sold in
each of the parcels. These stones generated a total average sales value of
US$1,170 per 100 tonnes mined and processed. The balance of the stones recovered
over and above budget was proportionately smaller in size and achieved an
average sales value of US$53 per carat. These additional stones recovered added
US$500 per 100 tonnes processed to revenues - bringing total revenues to
US$1,663 per 100 tonnes against a cash cost of approximately US$230 per 100
tonnes.


Commenting on the better than expected recoveries, Chief Executive Officer,
Martyn Churchouse said: "Any additional cash flow that can be generated - be it
due to an increase in recovered grades, an introduction of processing techniques
specific to tailing feedstock, or general improvements in efficiency - provides
the Company with additional financial resources that can be directed towards
further acquisitions or expansion of existing operations and therefore growth
for KimCor.


"This is particularly the case if increased revenues can be achieved without any
parallel increase in operating or capital costs. The construction of the main
plant that will process 720,000 tonnes of tailings per annum is progressing
well. We have learnt a great deal from the pilot plant trials and will implement
some new initiatives in plant design that are expected to further improve
recoveries."


This technical content of this press release has been reviewed by the
Non-Executive Chairman of KimCor, Professor Gordon Riddler, BSc, MBA, FIMMM,
CEng, CSci, CMkt, MCIM, MCMI who has 40 years of experience in the mining sector
and is a Fellow of the Institute of Materials, Minerals and Mining, a recognized
professional association.





                                   ---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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