Diamcor Mining Company Profile

DIAMCOR MINING

A CANADIAN COMPANY WITH A PROVEN HISTORY OF SUPPLYING ROUGH DIAMONDS TO THE WORLD MARKET, WITH A STRATEGIC RELATIONsHIP WITH TIFFANY AND CO
Company Exposure

Diamonds

Company Listing

Diamcor Mining

Stock Code

TSX-V:DMI

Company Overview



In February of 2011, Diamcor was selected by De Beers to acquire the Krone-Endora project, which is located directly adjacent to De Beers flagship Venetia Mine. The deposits at Krone-Endora are the result of the direct shift and erosion of an estimated 1,000 vertical meters of material from Venetia, one of the most prolific sources of gem quality diamonds in the world. Diamcor has established a strategic alliance with world famous Tiffany & Co., and it’s focus is on leveraging its near-term production, cash flow and earning potential, along with its proven operational history, established relationships, and excellent corporate structure to advance this production based business strategy and allow it to achieve growth in the significant surrounding areas of the project to further increase its supply of rough diamonds to the world market.

TIFFANY & CO ALLIANCE

Diamcor has established a long-term strategic alliance with Tiffany & Co. Canada, a subsidiary of world famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at then current prices to be determined by the parties on an ongoing basis. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided Diamcor ~$10M with financing to advance the Project during the early stages. Tiffany & Co. is ~5% shareholder in Diamcor, and a publicly traded company which is listed on the New York Stock Exchange under the symbol TIF.

PRIVATE PLACEMENT

  • Diamcor to complete a non-brokered private placement financing of up to 12,500,000 units at a price of CDN$0.40 per Unit for gross proceeds of up to CDN$5,000,000
  • Diamcor received initial subscription commitments for the Offering from existing institutional and larger shareholders
HIGHLIGHTS OF THE KRONE-ENDORA PROJECT

  • Recoveries and sales of diamonds from initial testing and commissioning exercises only (largest to date 91.7 carats – below)
  • FY2017 full year sales: 32,628 carats for C$5.93M
  • FY2016 full year sales: 24,068 carats for C$4.68M
  • FY2015 full year sales: 14,154 carats for C$3.07M
Live Financials

Latest Announcements

Share Price Performance

DIRECTORS & MANAGEMENT

Dean H. Taylor – Chairman, CEO and Director
Darren Vucurevich – CFO, Director
Gerald Engelsman – MD of Operations South Africa
James Hawkins – MD of Exploration
Dr. Stephen Haggerty – Director
Sheldon B. Nelson – Director

Major Shareholders

AGF 10%
Vertex One 10%
Tiffanys 5%
Institutional and Large Shareholders 60%

KRONE-ENDORA DIAMOND MINE

Project development

  • ~$50.0M spent on advancing and the development of all infrastructure over the past seven years since acquiring the project, with large-scale trial mining underway aimed at aiding the Company in announcing its initial production decision for the project in the very near-term
  • 30 year mining right and Water Use License to support long-term diamond mining operations at Krone-Endora approved and granted by the South African Department of Water and Sanitation, further de-risking the project
  • Final planned cap-ex expenditures at the project, including upgrades and significant expansions to the projects in-field dry screening plant, main treatment plant and final recovery targeted for completion by Sept 2018
  • These final preparations are aimed at supporting increased processing volumes, incorporating the crushing and processing of larger material up to 45.0mm, establishing a dedicated large diamond recovery circuit, and increasing the capacity of the project’s final diamond recovery facilities for the long-term
COMPANY STRUCTURE
  • Diamcor on 5/3/2008 formed a formal joint venture partnership with well-established South African BEE group Nozala Investments (Pty) Ltd.
  • Partnership reflected in the Diamcor South African subsidiary, DMI Minerals South Africa (Pty) Ltd.
  • Diamcor retained a 70% direct ownership in the DMI Minerals subsidiary, with Nozala acquiring a 30% direct shareholder ownership interest
GEOLOGY AND LOCATION

  • Deposits on the properties of Krone and Endora (directly adjacent to Venetia) identified as a higher-grade “Alluvial” basal deposit covered by a lower-grade upper “Eluvial” deposit
  • Deposits are the result of the direct-shift (in respect to the “Eluvial” deposit) and subsequent erosion (in respect to the “Alluvial” deposit) of material from the higher grounds of the adjacent Venetia Kimberlites
  • The deposits on Krone-Endora occur in two layers directly adjacent to the Venetia pipes, with a maximum total depth of less than 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source
  • Krone-Endora also benefits from the significant development of infrastructure, and services already in place due to its location directly adjacent to the De Beers Venetia Mine (Figure 2)
WORK PLAN FOLLOWING CASH RAISING

  • Proceeds from the Offering will be used to significantly increase water recoveries at the Company’s Krone-Endora at Venetia Project through the installation of a paste thickening plant and associated operational equipment to support planned increases in processing volumes at the Project, and a planned move into initial production
  • Other portions will be used to advance additional bulk sampling into surrounding areas, and for general and administrative purposes
WATER INFRASTRUCTURE

  • Diamcor has completed the drilling, design, procurement, installation and commissioning of 7 boreholes
  • Diamcor has completed the construction of ~20km of underground pipelines, the establishment of large lined fresh water dams, settling dams, and the various pumping stations required to support the project for the long-term
OPERATING EXPENSES

  • FY2017 operating expenses C$4,789,342
  • FY2016 operating expenses C$3,668,955
  • Comprised mainly of labour, management, contracted labour and equipment, utilities, fuel and other project development expenses
  • FY2017, Diamcor’s increased expenses were due to increased efforts associated with final preparations in the advancement and development of the Krone-Endora project

Contact Details

WEBSITE: www.diamcormining.com

EMAIL: info@diamcormining.com

PHONE: +1-250-862-3212

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