RNS Number:3641F
KimCor Diamonds plc
09 October 2007


                              KimCor Diamonds plc
                          ("KimCor" or the "Company")

                       Increased production at Bellsbank

   * New Dense Media Separation unit commissioned
   * Process capacity increased 85 per cent. to 75,000 tonnes per month
   * Diamond recovery expected to increase to 3,000 carats per month
   * Phase 2 expansion to commence before the end of the year

The Board of KimCor, the mid-tier diamond producer following the recent
acquisition of Dwyka Diamonds Holdings ("DDH"), is pleased to announce that the
installation of a new Dense Media Separation unit ("DMS") has been completed at
the Company's Bellsbank tailing operation. Commissioning of the unit commenced
on 2 October, 2007, two months ahead of schedule.

The DMS unit will allow the mine to increase the process rate by over 85 per
cent., from 40,000 to 75,000 tonnes of tailings per month. This is expected to
result in an increase in diamond production from 1,600 carats to 3,000 carats
per month.

As part of the plant upgrade and expansion programme the grease tables in the
final recovery section have been removed. All future concentrate production will
be processed at the Company's central sorting facility, located in Kimberley,
which was acquired as part of the recent acquisition of DDH. The newly acquired
facility offers improved efficiencies with the addition of Flowsort X-ray
machines and grease tables which combined are expected to improve diamond
recovery.

The DMS installation completes Phase 1 of the Bellsbank expansion programme
which is designed to increase annual production to 900,000 tonnes per annum.

The Phase 2 programme, which is expected to commence before year end, will
include the installation of a pre-concentration facility which combined with the
DMS unit is designed to further raise annual production to 1.4 million tonnes,
generating 56,000 carats per annum.

Martyn Churchouse, Chief Executive of KimCor, commented, "The addition of the
DMS unit completes the first stage of the expansion programme at Bellsbank and,
as soon as we have the unit operating routinely, we will commence with the
design and planning of further increases in production rates. The objective is
to fast track treatment of the Bellsbank tailings whilst in parallel completing
exploration on the nearby Bosele exploration Project with a view to converting
the tailings plant to a primary ore plant in 3 years time".


Enquiries:

KimCor Diamonds plc                     Tel: 020 7290 1400
Martyn Churchouse

Strand Partners Limited                 Tel: 020 7409 3494
Simon Raggett
Warren Pearce

Bishopsgate Communications Ltd          Tel: 020 7562 3350
Maxine Barnes
Nick Rome




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

END
DRLUUGQUUUPMGRR
Kimcor Diamonds (LSE:KIM)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Kimcor Diamonds Charts.
Kimcor Diamonds (LSE:KIM)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Kimcor Diamonds Charts.