Diamcor Mining Announces Strong Tender and Sale Results, Including 59.35 Carat Specialty Diamond

KELOWNA, BC /ACCESSWIRE/September 7, 2022/ Diamcor Mining Inc. (TSX-V.DMI) (OTCQB:DMIFF) (FRA:DC3A), (“Diamcor” or, the “Company”) today announces the results of its second tender and sale of rough diamonds recovered from processing quarry materials from the Company’s Krone-Endora at Venetia project (the “Project”) held during the current quarter. In the second tender and sale in its second fiscal quarter, the Company sold a total of 1,836.52 carats of rough diamonds, including the previously announced 59.35 carat gem diamond, generating gross revenue of $1,621,559.42, an average price of $882.95 per carat.

Strong points

  • The largest 59.35 carat gem-quality Special Rough Diamond clearly improved the overall average dollar per carat obtained in the second tender and sale of the quarter, and confirms once again the potential for recovery of these types of rough diamonds in the deposits and to have a positive effect on gross revenues.
  • The results of the tender and sale, excluding the 59.35 carat special rough diamond, were 1,777.17 carats, generating gross revenue of US$425,423.42, a average price of $239.38 per carat.
  • Although the total number of carats sold to date this quarter is higher than the previous quarter, the total number of carats offered for tender and sale was lower than expected, mainly due to the large cuts current from Eskom to South Africa in July and August. , and the resulting loss of operating hours during those months. Additionally, while the average dollar per net carat of the rough diamond of 59.35 carats remained in line with recent sales, the percentage of rough diamonds at +2.0 carats appeared to be below normal. This shortcoming is believed to be the result of errors in the project’s final recovery systems, which may have been caused by repeated power supply problems. With Eskom outages and power swings now mostly complete, the company has undertaken a comprehensive review of these systems to ensure that any risk of further issues in this area has been minimized in the future.
  • A total of 3,776.33 carats have been sold in the current quarter to date, generating gross revenue of $2,099,951.32, or an average price of $556.08 per carat, including rough diamond 59.35 carat special. This current quarter gross revenue represents a 276% increase over the gross revenue generated in the prior quarter ending June 30, 2022.

We are very pleased with the strong results from our most recent tender and sale, despite the significant challenges of operational disruptions and the resulting decline in processing volumes caused by the power outages put in place by South Africa’s national electricity supplier, Eskom,” said Mr. Dean Taylor, CEO of Diamcor. “Revenues achieved confirm the potential and value of recovering large, gem-quality rough diamonds into the specialty diamond category, and with the country’s electricity supply now appearing to have stabilised, we look forward to the increased processing volumes until the end of this year and the possibility of recovering other large rough diamonds in the category of special diamonds.”

Update on Annual Filings and MCTO Revocation

The Company is also pleased to announce that the delay in the filing of its audited financial statements and related MD&A for the year ended March 31, 2022, resulting from continued delays in South Africa related to Phase 6 load shedding (also known as blackouts) in July by the utility public electricity company, Eskom, has been rectified. The Company is now up to date with its required filings, and the management cease trade order detailed in its July 29, 2022 and August 12, 2022 press releases has been revoked by the British Columbia Securities Commission.

About Diamcor Mining Inc.

Diamcor Mining Inc. is a junior publicly traded diamond mining company that trades on the TSX Venture Exchange under the symbol V.DMI and on the OTC QB International under the symbol DMIFF. The company has a well-established operational and production history in South Africa and extensive previous experience in supplying rough diamonds to the global market.

About the Tiffany & Co. Alliance

The Company has established a long-term strategic alliance and right of first refusal with Tiffany & Co. Canada, a subsidiary of renowned New York-based company Tiffany & Co., to purchase up to 100% of future diamond production crude from Krone-Endora to the Venetia project at then-current prices to be determined by the parties on a continuing basis. Along with this first right of refusal, Tiffany & Co. Canada also provided the Company with funding to advance the Project. Tiffany & Co. is now owned by Moet Hennessy Louis Vuitton SE (LVMH), a publicly traded company listed on the Paris Stock Exchange (Euronext) under the symbol LVMH and on the OTC under the symbol LVMHF. For more information about Tiffany & Co., please visit their website at www.tiffany.com.

About Krone-Endora in Venetia

In February 2011, Diamcor acquired the Krone-Endora at Venetia project from De Beers Consolidated Mines Limited, consisting of exploration rights to the Krone 104 and Endora 66 farms, which represent a combined area of ​​approximately 5,888 hectares directly adjacent to Flagship De Beers’ Venetia diamond mine in South Africa. On September 11, 2014, the Company announced that the South African Department of Mineral Resources had granted a mining right for the Krone-Endora at Venetia project covering 657.71 hectares of the total project area of ​​5,888 hectares. The Company has also submitted an application for mining rights over the remaining areas of the Project. The deposits on the Krone and Endora properties have been identified as a higher grade basal “alluvial” deposit that is overlain by a lower grade upper “Eluvial” deposit. The deposits are proposed to be the result of direct displacement (relative to the “Eluvial” deposit) and erosion (relative to the “Alluvial” deposit) of material from the higher terrain of the adjacent Venetia Kimberlite areas. The Krone-Endora deposits occur in two layers with a maximum total depth of approximately 15.0 meters from surface to bedrock, allowing for a very low cost mining operation with the potential for diamond production short-term from a known high-quality source deposit. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia mine.

Qualified Person Declaration:

Mr. James P. Hawkins (B.Sc., P.Geo.), is Director of Exploration and Special Projects for Diamcor Mining Inc., and the qualified person under National Instrument 43-101 responsible for overseeing execution of Diamcor’s exploration programs and a member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). Mr. Hawkins has reviewed this press release and approved its contents.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President and CEO
Diamcor Mining Inc.
www.diamcormining.com

For more information, contact:

Mr. Dean H. Taylor
Diamcor Mining Inc
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+1 250 862-3212

Mr. Rich Matthews
Integral Communications
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+1 (604) 355-7179

This press release contains certain forward-looking statements. Although these forward-looking statements represent our current best judgment, they are subject to a variety of risks and uncertainties which are beyond the Company’s ability to control or predict and which could cause actual events or results to differ materially. those anticipated in these forward-looking statements. research statements. Further, the Company expressly disclaims any obligation to update any forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

WE SEEK A SAFE PORT

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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