Diamcor Mining Reports Significant Large Diamond Discoveries and Operational Progress at Krone-Endora Project

Diamcor Mining Inc., a leading diamond exploration and mining company, has released compelling results from ongoing exercises conducted at its Krone-Endora at Venetia Project. These findings, stemming from the quarter ending September 30, 2017, underscore the considerable potential for the recovery of larger, high-value rough diamonds, solidifying the project’s strategic importance within the global diamond industry. Despite operational constraints, the company successfully recovered and sold a notable collection of exceptional stones, signalling a promising future for its South African operations.

Unearthing Exceptional Diamonds: A Glimpse into High-Value Recovery

The latest operational update from Diamcor Mining highlights a remarkable trend: the consistent recovery of substantial rough diamonds from its Krone-Endora Project. During the quarter, even with what the company described as “limited processing” capacity, the project yielded several extraordinary finds. This included 3 individual rough diamonds classified within the coveted “specials category,” each weighing over 10.8 carats. The “specials category” is a classification reserved for rough diamonds of significant size, typically exceeding 10.8 carats (approximately 2.16 grams), which inherently command higher per-carat prices due to their rarity and potential for yielding large, exquisite polished stones.

Beyond these top-tier finds, Diamcor also reported the recovery and sale of an impressive 35 individual rough diamonds, each exceeding 5 carats in size. The presence of multiple stones in this larger size range, particularly from limited processing efforts, strongly validates the underlying geological prospectivity of the Krone-Endora deposit. This consistent stream of larger rough diamonds is a critical indicator of a project’s long-term economic viability and its capacity to deliver superior returns, especially when compared to operations that primarily yield smaller, lower-value goods. The ability to consistently unearth such significant stones positions Diamcor’s project as a key player in the supply of high-quality rough diamonds to the international market.

Strong Sales Performance Amidst Market Fluctuations

Financially, the quarter demonstrated robust performance for Diamcor Mining. The company successfully sold a total of 7,771.13 carats of rough diamonds, generating gross proceeds of US$ 1,334,335.41. This translated into an impressive average price of US$ 171.70 per carat. This average price is a crucial metric, reflecting not only the quantity but, more importantly, the quality and composition of the diamonds recovered. A higher average dollar per carat generally indicates a greater proportion of larger, higher-quality, or more desirable stones within the overall yield.

Furthermore, as the quarter concluded, Diamcor had approximately 2,465.00 additional carats of rough diamonds awaiting tender in the subsequent period. These carats were awaiting the crucial “acid washing” process. Acid washing is a standard post-recovery procedure where rough diamonds are treated with a special acid solution to remove external impurities, residue, and natural coatings. This process is essential for revealing the true clarity, color, and structural integrity of the diamonds, which in turn allows for a more accurate valuation and maximizes their appeal to potential buyers at tender. The inventory of unwashed carats points to a continued revenue stream and further reinforces the project’s ongoing productivity.

Navigating Market Headwinds with Quality and Resilience

The period under review was characterized by persistent price weaknesses across certain categories of rough diamonds in the broader global market. This challenging environment makes Diamcor’s achieved average dollar per carat of US$ 171.70 even more commendable. Market softness can be attributed to various factors, including global economic conditions, shifts in consumer demand, and oversupply in particular diamond segments. Despite these external pressures, the consistent and favorable average price achieved by Diamcor serves as a powerful testament to the inherent quality and desirability of the diamonds originating from the Krone-Endora Project.

This resilience in pricing during a downturn underscores the project’s ability to produce diamonds that hold their value, particularly those in the larger and special categories, which are often less susceptible to general market fluctuations. It suggests that Diamcor’s output is either diversified enough to weather price volatility or, more likely, comprises a significant proportion of high-value stones that remain in strong demand regardless of broader market trends. For investors and stakeholders, this offers considerable reassurance regarding the stability and potential profitability of the Krone-Endora operations, validating the company’s strategic focus on this particular asset.

Operational Milestones and Overcoming Challenges

On the operational front, Diamcor Mining announced significant advancements, with both the project’s in-field Dry-Screening plant and the Main Treatment Plant now fully completed and commissioned. These state-of-the-art facilities are designed to process material at significantly higher volumes, marking a pivotal step towards unlocking the project’s full production potential. The Dry-Screening plant efficiently separates coarser material from finer material before it enters the main treatment stream, optimizing the subsequent recovery process. The Main Treatment Plant, meanwhile, is the core facility where diamond-bearing gravels undergo advanced processing to liberate the rough diamonds.

However, the company faced a critical challenge that temporarily limited the full utilization of these new capacities: insufficient recoveries of water from the project’s settling dams. Water is an indispensable resource in most modern diamond mining operations, essential for processes such as washing, screening, and density separation that help isolate diamonds from vast quantities of gravel. The inability to consistently recover adequate water volumes directly impacted the plants’ ability to operate at their designed throughputs, thus constraining overall diamond recovery. Diamcor proactively addressed this issue, confirming that decisive steps have been initiated to overcome this problem. These measures likely involve enhancing water recycling technologies, optimizing existing dam infrastructure, or exploring alternative water sourcing strategies to ensure a sustainable and sufficient supply for continuous, high-volume operations.

CEO’s Vision: Unlocking the Full Value Proposition

Dean Taylor, Chief Executive Officer of Diamcor Mining, expressed strong confidence in the project’s future, reinforcing the company’s strategic direction. “With the Project’s newly expanded facilities, permitting, and infrastructure in place and the average dollar per carat continuing to confirm the quality of the Project’s diamonds,” Taylor stated, “we are confident that implementing the new water recovery solution will allow us to demonstrate the considerable value proposition of the Project in the near-term.”

This statement encapsulates Diamcor’s forward-looking strategy. The completion of expanded facilities, securing necessary permits, and robust infrastructure development represent significant milestones, establishing a solid foundation for scaled-up operations. The consistent confirmation of high diamond quality through the average dollar per carat figures provides fundamental validation of the project’s geological wealth. Taylor’s emphasis on the “considerable value proposition” underscores the potential for substantial long-term returns for shareholders, driven by increased production, continued recovery of high-value diamonds, and operational efficiency once the water challenges are fully resolved. Resolving the water recovery issue is thus not just an operational fix but a crucial catalyst for realizing the project’s inherent economic potential and significantly boosting output.

Conclusion: A Bright Horizon for Diamcor’s Krone-Endora Project

The latest update from Diamcor Mining Inc. paints a clear picture of a company on the cusp of significant growth and value realization. The consistent recovery of large, high-value rough diamonds, including multiple “specials category” stones, undeniably confirms the rich potential of the Krone-Endora at Venetia Project. Despite a challenging global diamond market, the project’s ability to achieve strong average prices per carat speaks volumes about the superior quality of its diamondiferous gravels. With critical infrastructure now in place and proactive measures addressing temporary operational hurdles like water recovery, Diamcor is poised to transition into a phase of optimized production.

The strategic vision articulated by CEO Dean Taylor highlights the company’s readiness to capitalize on these advancements, leveraging expanded facilities and proven diamond quality to unlock the project’s full economic “value proposition.” As Diamcor moves forward with its enhanced operational capabilities and resolves its immediate water challenges, the Krone-Endora Project is set to reinforce its position as a significant and reliable source of high-quality rough diamonds, promising considerable returns and sustained success for Diamcor Mining Inc. in the global diamond market.