Diamcor Mining Inc. Reports Robust Q3 2018 Diamond Sales and Significant Operational Growth

KELOWNA, December 2018 – Diamcor Mining Inc. (TSX-V.DMI / OTCQB-DMIFF), a leading junior diamond mining company, is pleased to announce the culmination of a strong third fiscal quarter ending December 31, 2018. The company has successfully concluded its final tender and sale of rough diamonds for the period, demonstrating significant advancements in both operational recovery and revenue generation at its Krone-Endora at Venetia Project in South Africa. These results underscore Diamcor’s commitment to maximizing shareholder value through efficient extraction and strategic market positioning.

Executive Summary: A Period of Strategic Advancement and Enhanced Performance

Diamcor Mining Inc. experienced a period of remarkable growth and strategic development during its third fiscal quarter. The company reported impressive increases in both rough diamond carats recovered and total revenues, a testament to the ongoing optimization efforts at its flagship Krone-Endora at Venetia Project. Beyond the compelling financial figures, Diamcor reinforced its corporate governance through the re-election of key directors and fortified its incentive structure with an expanded stock option plan. These combined achievements reflect a company poised for sustained success in the competitive global diamond market, driven by a valuable asset, strategic partnerships, and sound management practices.

Robust Q3 2018 Financial and Operational Highlights

Final Tender Results for Q3 2018

The final tender and sale for the third fiscal quarter showcased the consistent productivity of Diamcor’s operations. A total of 2,256.52 carats of rough diamonds, meticulously recovered from the resumed processing exercises at the Krone-Endora at Venetia Project, were put up for sale. Of these, a substantial 1,905.07 carats were successfully sold, generating gross proceeds of USD $303,138.39. This translates into an average price of USD $158.60 per carat for the rough diamonds sold in this final tender. The remaining 351.45 carats, which were not sold in this tender, are strategically positioned to be included in upcoming sales scheduled for early 2019, alongside additional rough diamonds expected to be delivered in January.

Overview of Total Q3 2018 Performance

With the completion of this final tender, Diamcor has aggregated its impressive performance for the entire third fiscal quarter ending December 31, 2018. The total rough diamonds tendered and sold throughout the quarter amounted to a significant 7,162.21 carats. These sales collectively yielded gross proceeds of USD $1,401,322.01, resulting in a robust average price of USD $195.66 per carat for the entire period. This sustained high average price underscores the quality and market desirability of the diamonds recovered from the Krone-Endora Project, reinforcing Diamcor’s position as a supplier of valuable rough diamonds to the global market.

Year-Over-Year Growth and Strategic Initiatives

The third fiscal quarter of 2018 stands out as a period of exceptional growth when compared to the corresponding period of the prior fiscal year. Diamcor achieved a remarkable 64% increase in carats recovered, a significant leap from the 4,353.91 carats reported previously. This substantial increase in volume directly translated into a 62% surge in revenues realized, climbing from USD $864,546.09 in the prior year to over $1.4 million in the current quarter. While the volume and revenue saw substantial increases, the average price per carat remained relatively stable year over year. This stability in pricing, amidst a significant increase in production, highlights the consistent market value of Diamcor’s diamonds and the efficiency of its sales process. The company’s processing strategy during the quarter initially focused on smaller size fractions. However, a strategic shift towards incorporating an increased percentage of larger size fractions was implemented later in the quarter. This is a crucial part of Diamcor’s planned move to process all size fractions through its recently upgraded facilities, a move expected to further enhance recovery rates and overall project economics. Furthermore, Diamcor has already delivered approximately 2,000 additional carats of rough diamonds (prior to acid wash) to Antwerp, signaling a strong pipeline for upcoming tenders planned for early 2019, ensuring continued revenue generation into the new year.

Strengthening Corporate Governance and Shareholder Value

Re-election of Directors

At the Company’s annual general meeting held on December 18, 2018, shareholders demonstrated their continued confidence in Diamcor’s leadership by re-electing the esteemed members of its board of directors. Dean Taylor, Darren Vucurevich, Sheldon Nelson, and Dr. Stephen Haggerty were all reaffirmed in their roles. The re-election of these experienced individuals provides continuity and stability, ensuring that Diamcor continues to benefit from their strategic guidance, industry expertise, and unwavering commitment to the company’s long-term vision and shareholder interests.

Expanded Stock Option Plan

In a move designed to further align the interests of management and employees with those of its shareholders, the disinterested shareholders of Diamcor Mining Inc. approved a significant amendment to the Company’s fixed stock option plan. This amendment increased the number of options available under the plan from 8,622,233 options to a total of 12,777,177 options. This expanded pool of options now represents 20% of the Company’s issued and outstanding shares as of the record date for the meeting. This enhancement to the stock option plan is a strategic initiative aimed at attracting, retaining, and motivating key personnel, ensuring that the company has the talent required to execute its growth strategies and drive future success.

Re-appointment of Auditors

Maintaining robust financial oversight and transparency is paramount for any publicly traded company. In line with this commitment, MNP LLP was re-appointed as Diamcor’s auditors for the ensuing fiscal year. This re-appointment reflects the company’s dedication to rigorous financial reporting standards and its continued trust in MNP LLP’s expertise and independence, providing shareholders with assurance regarding the integrity of its financial statements and operations.

Delving Deeper into Diamcor Mining Inc.

Company Profile and Market Presence

Diamcor Mining Inc. is a well-established and publicly traded junior diamond mining company with a significant presence in the global market. Listed on the TSX Venture Exchange under the symbol V.DMI and on the OTCQB International under the symbol DMIFF, Diamcor provides investors with direct exposure to the lucrative diamond sector. The company boasts a proven operational and production history in South Africa, a region renowned for its rich diamond deposits. With extensive prior experience in supplying rough diamonds to the world market, Diamcor has cultivated a reputation for reliability, quality, and ethical sourcing, reinforcing its standing as a credible and active player in the international diamond supply chain.

Strategic Alliance with Tiffany & Co.: A Foundation for Success

A cornerstone of Diamcor’s strategic framework is its long-term alliance with Tiffany & Co. Canada, a subsidiary of the iconic, world-famous New York-based luxury jeweler, Tiffany & Co. This significant partnership grants Tiffany & Co. Canada a first right of refusal to purchase up to 100% of the future production of rough diamonds from Diamcor’s Krone-Endora at Venetia Project. These purchases are conducted at then-current market prices, determined by ongoing negotiations between the parties, ensuring fair value for Diamcor’s output. Beyond the prestige and guaranteed market access, this alliance provides invaluable financial support, as Tiffany & Co. Canada has also provided the Company with financing crucial for advancing the Krone-Endora Project. This strategic collaboration not only validates the quality and potential of the Krone-Endora Project but also provides Diamcor with unparalleled market stability and financial backing, significantly de-risking its operations. Tiffany & Co. itself is a publicly traded company, listed on the New York Stock Exchange under the symbol TIF, and its sterling reputation further enhances the credibility and market appeal of Diamcor’s operations. For additional information on Tiffany & Co., interested parties are encouraged to visit their official website at www.tiffany.com.

The Krone-Endora at Venetia Project: Unearthing Premium Diamonds in South Africa

The Krone-Endora at Venetia Project stands as Diamcor’s primary asset, representing a significant opportunity in the diamond mining landscape of South Africa.

Project Acquisition and Mining Rights

In February 2011, Diamcor strategically acquired the Krone-Endora at Venetia Project from the venerable De Beers Consolidated Mines Limited. This acquisition included prospecting rights over the farms Krone 104 and Endora 66, encompassing a substantial combined surface area of approximately 5,888 hectares. Critically, this expansive property is situated directly adjacent to De Beers’ renowned Venetia Diamond Mine, one of the most prolific diamond mines in the world. This proximity offers significant advantages in terms of geological continuity and established infrastructure. On September 11, 2014, Diamcor achieved a pivotal milestone when the South African Department of Mineral Resources granted a Mining Right for a portion of the Krone-Endora at Venetia Project, specifically covering 657.71 hectares of its total area. This mining right transitioned the project from exploration to full-scale production potential. Furthermore, the Company has proactively submitted an application for a mining right over the remaining areas of the Project, demonstrating its long-term vision and commitment to fully developing this valuable asset.

Geological Significance and Low-Cost Operations

The geological characteristics of the Krone and Endora properties are particularly advantageous. The deposits are identified as a higher-grade “Alluvial” basal deposit, which lies beneath a lower-grade upper “Eluvial” deposit. These deposits are theorized to have formed as a result of the direct-shift (for the Eluvial deposit) and erosion (for the Alluvial deposit) of diamondiferous material from the elevated grounds of the adjacent Venetia Kimberlite areas. The occurrence of these deposits in two distinct layers, with a maximum total depth of approximately 15.0 meters from the surface to bedrock, is a key factor enabling a very low-cost mining operation. This shallow depth significantly reduces extraction complexities and costs compared to conventional deep-vein kimberlite mining. The potential for near-term diamond production from a known high-quality source, coupled with these favorable geological conditions, positions Krone-Endora as a highly attractive mining venture.

Strategic Location and Infrastructure Advantages

The Krone-Endora Project benefits immensely from its strategic location. Being directly adjacent to the operational Venetia Mine means that the area already boasts significant development in terms of infrastructure and services. This includes access to roads, power, water, and skilled labor, which are often major cost and logistical hurdles for remote mining projects. The existing infrastructure provides a considerable competitive advantage, reducing initial capital expenditures and ongoing operational costs for Diamcor, thereby enhancing the project’s overall economic viability and accelerating its path to consistent profitability.

Forward Outlook: Poised for Continued Growth

Diamcor Mining Inc.’s strong performance in Q3 2018, marked by significant increases in diamond recoveries and revenues, coupled with strategic corporate governance enhancements, positions the company for continued growth. With additional rough diamonds earmarked for early 2019 tenders and ongoing advancements in processing capabilities at the Krone-Endora at Venetia Project, Diamcor is set to sustain its momentum. The enduring alliance with Tiffany & Co. provides a robust market for its high-quality diamonds, while the inherent geological advantages of the Krone-Endora project ensure efficient and low-cost production. As Diamcor continues to execute its operational and strategic plans, the company remains focused on maximizing value for its shareholders and solidifying its standing as a premier junior diamond producer.

NewsSource: Diamcor Mining Inc