Diamcor Mining Inc. (TSXV:DMI,OTCQX:DMIFF) is a junior diamond mining company focused on the identification, acquisition, and operation of quality projects with the potential for near-term production. Diamcor recently acquired the Krone-Endora at Venetia Project from DeBeers, directly adjacent to DeBeers’ flagship Venetia Diamond Mine, the third largest diamond mine in the world. In March, Diamcor entered a long-term strategic alliance with the luxury retailer Tiffany & Co., closing a 5.5 Million financing to expedite the advancement of Krone-Endora to production, and an agreement allowing them to purchase up to 100% of all future production at fair market prices.
The current NI 43-101 Technical Report, performed in 2009 on areas where DeBeers had preformed initial work, reported 54M tonnes/1.3 M carats. Diamcor believes that there is potential to substantially increase the Inferred resource, as areas of high interest are drilled. In May 2011 a planned drill programme and bulk sampling began.
- Milestone acquisition from DeBeers now complete
- Long term strategic alliance with Tiffany&C0.
- Production-focused diamond mining company
Krone – Endora at Venetia – South Africa
In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers through its majority-owned subsidiary, DMI Minerals. Krone-Endora is located in the Limpopo province of the Republic of South Africa, approximately 500 km north-northeast of Johannesburg. The Venetia mine is the third largest diamond mine in the world, and South Africa’s largest producer of diamonds, accounting for over 50% of South Africa’s annual output.
The project consists of prospecting rights over the farms Krone 104 and Endora 66, covering a combined surface area of approximately 5,888 hectares directly adjacent to the Venetia Min and benefits from the significant development of infrastructure and services already in place at Venetia.
De Beers completed extensive exploration work on initial areas of the Krone-Endora over a period of several years. These included a large diameter drilling program, a more comprehensive large diameter auger program, and a bulk sampling program. Deposits were identified as rare, high-grade lower eluvial basal deposit which is covered by a lower grade upper alluvial deposit, proposed to be the result of the direct shift and erosion of an estimated combined 1 km of material from the higher grounds of the adjacent Venetia Kimberlite areas.
A 5.5 million financing closed in March 2011 with Tiffany & Co., has allowed Diamcor to advance and deploy the necessary infrastructure to begin the mining and production of rough diamonds from Krone-Endora.
In April 2011, Diamcor began deploying heavy equipment to the property shortly after closing the acquisition. Approximately 400 potential targets were identified. In May 2011, the Company announced that the recommended drilling programme had begun. As of June 13 the first 200 of +/-200 targets included in the initial drilling phase have now been drilled. The Company is now moving on to phases 2 and 3 of the drilling program and initiating bulk sampling.
Initial bulk sampling work is aimed at recovering +/- 2000 carats to support an updated NI 43-101 report. The completion of the initial planned drilling, and bulk sampling will result in the filing of an updated NI 43101-Technical Report, scheduled to be reported in Q4, 2011. The current NI 43-101 Technical Report, circa 2009, was based solely on the areas of the project on which De Beers had previously performed initial work.
Trial mining focused on known high-grade areas with staged production increases has been planned, followed by further drilling and bulk sampling in 2012, which will be used to establish long-term production targets.
So Ver Mine – Kimberly, South Africa
The Company has a long established operational history of processing Kimberlite tailings at its So Ver Mine facility near Kimberley South Africa. The operations at So Ver processed Kimberlite material extracted from a number of subsurface fissure mines along approximately 3 km of strike length, known collectively as the Ardo Dyke System. These mines have been active over 45 years, and various mining groups continue feasibility studies to operate the underground Ardo mine adjacent to the So Ver property.
So Ver’s Tailings Retreatment facility produced between 1,500 and 2,000 carats of mostly gem-quality diamonds on a monthly basis in the 7 years Diamcor has been active in South Africa. In addition to the tailings operations at So Ver, Diamcor performed various Kimberlite exploration programs on other areas of interest on the property including the Doornkloof West dyke, approximately 500 meters to the west of the Ardo Dyke.
With the successful completion of the Company’s work at So Ver, Diamcor began to identify projects that demonstrated potential for near-term production with suitable resources for sustained long-term production.
Diamcor’s wholly-owned subsidiary, DMI Diamonds South Africa Ltd. acquired an option to secure a 24% interest in the privately held South African company, Nerikets Properties Ltd. DMI Diamonds also secured an exclusive option to acquire the remaining 76% interest in Nerikets, which held the Prospecting Rights Permit for diamond exploration over a 3,606.44 hectare area of the Farm Hardcastle 366, located on the north bank of the Middle Orange River.
Mr. Dean H. Taylor – Chairman, Director, and Chief Executive Officer
Mr. Dean H. Taylor is a successful entrepreneur and executive with a wealth of acquisition and operational experience. A firm believer in establishing a sound corporate structure and then attaining growth through acquisitions and the implementation of sound operational management, Mr. Taylor has utilized this experience to create the existing opportunities associated with Diamcor. Beginning late in 2005, Mr. Taylor began ensuring the Company’s corporate structure was attractive before leading Diamcor’s established operational team towards achieving growth through the pending acquisition of the Krone – Endora project from DeBeers, and preparation for future planned acquisitions.
Mr. Taylor is also the founder and CEO of Okanagan Valley Business Consulting Ltd., a private consulting firm that provides executive level consulting services to clients in both the private and public sector. Mr. Taylor has been the founder of several successful private businesses, and held various executive level positions with public companies in both Canada and the United States where he led those entities through both growth related acquisitions and operational project management initiatives over the past fifteen years.
Mr. Dean Del Frari – Managing Director of Operations – South Africa
Mr. Del Frari has been with Diamcor since May of 2002, and is the Company’s Managing Director of Operations for South Africa. Mr. Del Frari is responsible for management of the Company’s South African projects, as well as overseeing other corporate responsibilities concerning various Company initiatives worldwide. Originally educated at the University of Alberta and specializing in Marketing and International Business, Mr. Del Frari has also studied Geology, Mining, Metallurgical and Petroleum Engineering. He has advanced training in rough diamond grading from the HODTS in Johannesburg, and holds a Graduate Gemologist Diploma from the Gemological Institute of America.
Mr. Del Frari holds a Masters of Business Administration (MBA) from the University of Liverpool, is a licensed commercial helicopter pilot and has extensive operational field experience in various production based diamond related projects in South Africa. Since 2002 the focus of his activities has been on mining and the marketing of rough diamonds in South Africa and the ongoing review, evaluation and due diligence associated with the Company’s current growth objectives.
Mr. Darren Vucurevich B. Mgt. CMA - Director and Chief Financial Officer
Mr. Vucurevich was appointed to, and has been a member of, the Diamcor Board of Directors since July of 2005. A graduate of the University of Lethbridge in 1992, Mr. Vucurevich followed with his Certified Management Accountant designation in 1995. Since becoming a part of the Diamcor Board in 2005, Mr. Vucurevich has worked closely with the current Management to ensure that all elements of the Company’s international operations, accounting, banking, and reporting are continually advancing and developing to meet the requirements associated with its planned growth. Mr. Vucurevich currently operates a successful public accounting practice, and has also owned and managed various other successful companies.
Dr. Stephen E. Haggerty - Director
Dr. Haggerty is a distinguished research professor and has been recognized as one of the world’s leading diamond experts. His extensive knowledge and involvement over four decades in the diamond industry greatly compliments the Company’s current growing management team, and enhances their ability to achieve the ongoing acquisition and growth objectives they have set for the Company.
Dr. Haggerty graduated from the Royal School of Mines in Economic Geology in 1964 and received his PhD from the University of London in 1968. This was followed by a three-year post-doctoral Carnegie Fellowship at the Geophysical Laboratory in Washington, D.C., followed by a lengthy tenure at the University of Massachusetts. His most recent post has been Distinguished Research Professor at Florida International University in Miami, Florida, USA. Dr. Haggerty’s extensive research has revolved around the Fe-Ti-O system, and has ranged from studies of lunar samples and meteorites, to diamonds and the evolution of the middle upper mantle. He was the[a] Principal Investigator for 10 years in the U.S. Apollo and Soviet Luna sample return programs, and served on the Lunar Sample Analysis Planning Team. His various and ongoing research projects are vast, as are his past and ongoing field projects in west and southern Africa along with extensions to Brazil, Australia, Syria, Siberia, and China. Dr. Haggerty’s ties to South Africa are very strong as he was born in the Witwatersrand Basin of South Africa which is located some 50 km from the Bushveld complex and the famous Premier Diamond Mine. He is also the long time land-owner of the property on which yet another famous mine resides, that being the famous Jagersfontein mine, which is located in South Africa’s Free State some 110 km south-west of Bloemfontein.
Mr. Sheldon B. Nelson - Director
Mr. Nelson is based in New York City and has served as President, Chief Executive Officer and Chairman of the Board of MDU Communications International, Inc., a United States publicly traded corporation since its start-up inception in 1998. MDU is a leading provider of communication services to the residential multi-dwelling unit marketplace and under Mr. Nelson’s direction MDU has become a leader in its industry, attracted and closed various significant equity placements, established a growth-based credit facility, and merged with and/or acquired the operating assets of various other companies.
Before joining MDU, Mr. Nelson was President of 4-12 Electronics Corporation, a large Canadian based provider of products and services to the cable and satellite television industries. He is a 1983 graduate of Gonzaga University in Spokane, Washington where he graduated from the School of Business Administration, Magna Cum Laude, and was the recipient of the School of Business Administrations’ Award of Excellence.
Mr. Jim Hawkins B.Sc., P.Geoph. - Exploration Manager
Mr. Hawkins has been Exploration Manager at Diamcor since May 2007, and before that acted as a consultant to the Company since 2005. Mr. Hawkins graduated from the University of Western Ontario where he received a degree in Geophysics in 1977, after which he has been involved in mining exploration worldwide for over 25 years, including a stint as Manager of Special Projects for Diamet Minerals ( Ekati Diamond Mine / Northern Canada) before its sale to BHP Diamonds in 2000. He is a Member of the Association of Professional Engineers, Geologists, and Geophysicists of Alberta (“APEGGA”), registered as a Professional Geophysicist, and as such acts as the Company’s “Qualified Person” for all Exchange related Company documents and reports.