KIM Kimcor

RNS Number:1495M
KimCor Diamonds plc
16 November 2006

                                                                16 NOVEMBER 2006

                              KIMCOR DIAMONDS PLC
                                   (AIM: KIM)

                        BELLSBANK PRODUCES LARGE STONES

                    Independent Valuation of Diamond Parcel

KimCor Diamonds plc ("KimCor" or the "Company"), a diamond producing and
exploration company with properties in South Africa, is pleased to announce that
since commencing processing of the Bellsbank dumps, the average size of the
diamonds being recovered is exceeding expectations.

HIGHLIGHTS

   *The largest stone recovered to date is a 15 carat stone of excellent
    quality;

   *Independent evaluation of the first 1,000 carat parcel has reported an
    overall excellent quality of 'rough' stones;

   *The average price estimated US$180 per carat; and

   *KimCor will be able to add further value on the back of the cut and
    polish process being applied by Anmic.

The Company originally estimated that 5 per cent of total production would be
greater than one carat in size but this figure is presently running at over 10
per cent with more than half of these larger stones being greater than three
carats in size.

The largest stone recovered to date is a 15 carat stone of excellent quality.
Other large stones recovered include stones of 4.20, 4.57, 4.83, 5.23, 5.28,
5.30, 5.60 and 6.30 carats.

In addition to producing larger stones, independent evaluation of the first
1,000 carat parcel has reported an overall excellent quality of 'rough' stones
in terms of shape, colour and clarity. Independent assessment has valued small
rough stones (less than 0.50 carats) at between US$80 and US$90 per carat. Rough
stones in the 0.50 to 0.90 size category have been valued at over US$100 per
carat and stones within the 1.0 to 2.0 carat range at between US$200 and US$300
per carat. The average price is estimated at US$180 per carat. This takes no
account of the expected additional value to KimCor from the cut and polish
process being applied by Anmic, especially when applied to the larger stones
above two carats rough weight.

The existing parcel of 1,000 carats of smaller stones has been withheld from
sale whilst a further 800 carats are evaluated and added to the parcel prior to
submission for sale by the tender process.

The Company has, until recently, been mining and processing largely low-grade
dump material as part of a campaign of waste stripping to expose and prepare
three working faces on the main dump area. These faces will provide an
uninterrupted 18 month mining programme using a uniform tailing resource. The
stripping programme will provide a feedstock with consistent characteristics
that will allow the plant to operate routinely for an extended period. The
directors expect this to further improve diamond recoveries.

Commenting on the recent results, Martyn Churchouse, Chief Executive Officer
said: "The Bellsbank plant is functioning well and we are now recovering a broad
range of stone sizes, from the 1 carat rough that underpins the profitability of
the operation to the larger 5 to 15 carat stones. The recovery of larger stones
demonstrates the importance of balancing the operation of the plant at full
capacity with the need to treat every tonne of concentrate with sufficient care
to maximise the recovery of diamonds.

"The main focus now is to complete the three working faces on the main dump area
as quickly as possible, and have mining and processing operating routinely for
the next 18 months while we begin preparing for the next campaign on other dumps
at Bellsbank."

The 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 recognised
professional association.

                                        --ends--

KimCor Diamonds plc                                           Tel: 020 7290 1400
Martyn Churchouse
Manish Kotecha
www.kimcordiamonds.com

Hanson Westhouse LLP                                          Tel: 020 7601 6100
Bill Staple
Martin Davison

Bishopsgate Communications Ltd                                Tel: 020 7430 1600
Nick Rome
Fran Read



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

END
STREELFFQFBZFBF

Kimcor Diamonds (LSE:KIM)
Historical Stock Chart
From Jun 2024 to Jul 2024

Kimcor Diamonds (LSE:KIM)
Historical Stock Chart
From Jul 2023 to Jul 2024