Diamcor Mining Inc. (DMI:CA)

Diamcor Mining Inc. (TSX.V – DMI) is a production focused diamond mining company with established operations and a proven history of supplying rough diamonds to the world market.  The Company recently announced a long-term strategic alliance and financing with world famous New York luxury retailer Tiffany & Co, and the successful acquisition of the Krone-Endora at Venetia project from DeBeers Consolidated Mines.  The Krone-Endora at Venetia project is related to, and located directly adjacent to, De Beer’s flagship Venetia diamond mine.  The Krone-Endora at Venetia project was targeted by Diamcor due to its potential for near-term production and sustained long life of mine.  Initial recoveries of rough diamonds from bulk sampling and trial-mining exercises at Krone-Endora are targeted to begin in Q3 of 2011, after which the company plans to advance the project to full production based on the results of those initial efforts.
The recent announcement of the successful acquisition of the Krone-Endora at Venetia project from De Beers and the financing and long-term strategic alliance with Tiffany & Co. represent the successful execution of Diamcor’s stated production focused growth strategy over the past 24 months.  With these elements in now in place, Diamcor is firmly positioned as one of the few diamond mining companies in the world with an ability to take advantage of both current and expected future increases in rough diamond prices via the production and sale of quality goods. 
The areas of the Krone-Endora at Venetia project represent combined surface areas of approximately 5,888 hectares directly adjacent to DeBeers flagship Venetia Diamond Mine in South Africa.  DeBeers completed various pre-production exploration efforts on initial areas of approximately 310 hectares as reported in an initial Independent NI43-101 Technical Report filed by Diamcor.  The Deposits which occur on Krone-Endora were identified as a rare, high-grade "eluvial" deposit which is covered by a lower-grade "alluvial" deposit.  The deposits are proposed to be the result of the direct shift and erosion of an estimated 1,000m (1km) of material from the Venetia kimberlites and surrounding areas.  Based solely on the work to date, the current NI43-101 reported an initial inferred resource estimate of 54,258,600 tonnes of diamond-bearing gravels and 1.3 million carats of diamonds in the initial areas of interest alone.  The two near-surface deposits occur with an average total depth of 15.0m from surface to bedrock, allowing for a low-cost mining operation to be employed, and the potential for near-term diamond production from a known high-quality source.  The project also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.  Work is underway on extended drilling and bulk sampling aimed at better identifying the full potential of the resources on the project, as well as a current average diamond valuation, and to support the filing of an updated and current NI43-101 report by the company which is targeted for release in Q4 of 2011.  As noted, initial recoveries from bulk sampling and trial-mining are expected to begin in Q3 of 2011, with the results of those efforts then used by the company to aid in the determination of final production targets and decisions for the longer-term.