Junior Miner Diamcor Sells $1.3M Rough Diamonds from S. Africa Project in Q2

Mining and Exploration
11/10/2017 16:12

Canadian junior miner Diamcor Mining Inc. sold 7,771.13 carats of rough diamonds for US $1,334,335.41 ($171.70 avg/ct) in fiscal Q2, ended September 30, 2017, from the newly expanded facilities at the company’s Krone-Endora at Venetia Project in South Africa. The average price per carat of US$171.70 represents a 23% decline as compared to an average price per carat of US$222.55 in the prior quarter, from 6.6% fewer carats sold. As of the end of the quarter, Diamcor had approximately 2,465 additional carats of rough diamonds, before acid washing, which will be tendered in the coming quarter.

The company stated, "The Project continued to demonstrate potential for the recovery of larger rough diamonds despite limited processing, with 3 individual rough diamonds in the specials category (+10.8 carats), and 35 individual rough diamonds over 5 carats in size recovered and sold during the quarter.  Given the continued price weaknesses in certain categories of rough diamonds during the period, the Company was pleased with the average dollar per carat achieved, which is indicative of the overall quality of the Project’s rough diamonds." The tender took place amid the ongoing testing, commissioning and calibration of the facilities at the project, where they are working to refine their expanded facilities to increase processing volumes, increase material screenin efficiency and improve the recovery of water from the project’s settling dams. Both of the project’s processing plants are now complete and capable of processing material at significantly higher volumes; however, insufficient recoveries of water from its settling dams limited Diamcor's ability to operate these plants at their designed capacities during the period, the company says.

"It is unfortunate that the material being processed through our larger facilities reacts in a manner which does not allow us to recover/recycle sufficient water from the current settling dams; however, we firmly believe this is the only item limiting the processing of materials at much higher levels, and the solution we have identified will not only address this issue, but will also provide other operational benefits over the long-term”, noted Diamcor’s CEO Mr. Dean Taylor. “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, 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”, added Mr. Taylor.