KIM Kimcor

RNS Number:6330G
KimCor Diamonds plc
31 October 2007


                                        
                              KIMCOR DIAMONDS PLC
                          ("KimCor" or the "Company')
                                        
                  Expansion of KimCor Central Sorting Facility
                                        
KimCor Diamonds plc, the AIM quoted mid-tier diamond producer following the
recent acquisition of Dwyka Diamonds Holdings ("DDH"), is pleased to announce
that work has begun on the expansion of the Company's existing Central Sorting
Facility (the "Facility").

The Kimberley-based Facility provides final diamond recovery and cleaning from
all diamond concentrates produced by the Group's mining and processing
operations in South Africa.

The key features of the expansion include:

  * Threefold expansion in capacity to over 30 tonnes per day to meet
    anticipated future demand;
  * Improved technology being applied to ensure maximum diamond recovery; and
  * More efficient processes and protocols being introduced to improve grade
    control procedures on individual mining operations.

Dedicated Central Processing

As a means of achieving maximum diamond recoveries and limiting the risk of
diamond losses, concentrate production from mining operations is transported to
the Facility. A dedicated plant has been constructed to process diamond bearing
concentrates generated by the processing plants on all of the Group's producing
mines, with the exception of the Superkolong SMI4 plant, which has its own
dedicated sorting system.

Increasing Capacity

The current facility managed by a specialist team has the capacity to process
approximately 10 tonnes of concentrate per day. Increased capacity is required
to cope with the following planned mine expansions:

  * The recent increase in tailing processing at Bellsbank, which will
    result in an expected 10 tonnes of additional concentrate being produced
    daily;
  * Expansions at the Blaauwbosch and Newlands underground mines which will
    generate additional material for final sorting along with further increased
    output generated by tailing re-processing from the same two sites;
  * Recent re-commissioning of the Nooitgedacht alluvial operation;

KimCor is anticipating daily concentrate quantities to be processed increasing
threefold to over 30 tonnes per day once all the planned capital projects have
been completed.

The expansion will also allow KimCor to closely monitor daily production from
each mine and provide instant feedback to the respective mine managers, which in
turn is expected to improve grade control. The daily interaction with the
production end of the business is expected to allow management to quickly
identify and address any mining or plant related issues that may arise.

The operation of a single central facility also limits the risk of diamond
losses as one specialised recovery team has been assigned to oversee the single
plant rather than having five or more discrete recovery operations being
undertaken daily at remote sites.

With further expansions contemplated in the medium to long-term, the Group is
considering further upgrades in due course to accommodate the expected
additional daily concentrate feed to be delivered to the Facility for processing
and recovery of diamonds.

Martyn Churchouse, Chief Executive, commented, "The various mine expansion
programmes either taking place or contemplated will generate more concentrate
than can currently be processed efficiently by the Central Sorting Facility. The
aim of this capital programme is to ensure we have the capacity in place ahead
of the increases in individual mine production and can recover diamonds in a
cost effective and highly efficient process. A number of potential logistical
headaches are removed by the Central Sorting Facility and we have immediate
access to production data that can be relayed back to the individual mines".

                                   ---ENDS---

Enquiries:

KimCor Diamonds plc                                       Tel: 020 7290 1400
Martyn Churchouse

Strand Partners Limited                                   Tel: 020 7409 3494
Warren Pearce

Bishopsgate Communications Ltd                            Tel: 020 7562 3350
Nick Rome





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