Diamcor Optimistic After First Q3 Tender in Antwerp & Rising Output

Mining and Exploration
21/10/2019 23:54

Diamcor Mining Inc., a TSX-listed junior diamond mining company with operations in South Africa, sold 4,033 carats of rough diamonds at its first tender in Antwerp and has delivered another 6,369 carats which it expects to sell at a second tender at Koin International in Antwerp in November. A third tender is planned for December. The more than 10,000 carats of rough diamonds expected to be delivered and tendered in Q3 represents a significant increase compared to 3,882 carats delivered and tendered in Q2. The miner is currently re-processing old tailings as it refines its processing facilities.

The 4,033 carats sold in the first Q3 tender generated total gross proceeds of USD $424,072, resulting in an average price of US$105.15 per carat. Diamcor said it anticipated this lower-than-historical average price per carat, as they were expecting to recover a higher percentage of smaller, lower quality rough diamonds at this point of their operations. They said that price weaknesses in certain categories of the rough diamond market also contributed, to a lesser extent, to the lower dollar per carat average achieved. However, they remains confident the average price per carat will improve to historical levels as the processing of mined material begins through the refined processing facilities. Despite the percentage of smaller diamonds recovered from the current exercises, various larger gem quality rough diamonds in the +2.0 – 10.0 carat range continue to be recovered, they note.

The junior miner attributed its increased output to "the positive impact of the Company’s new operational management team and the exercises being performed to remedy past operating deficiencies and implement improved long-term operating practices and procedures at their Krone-Endora at Venetia Project." Diamcor is re-processing historical tailings and stockpiled material as part of their production analysis, an exercise they will continue for the coming weeks. They say these exercises will support the company’s planned increase in processing volumes at the Project with the resumption of normalized quarry mining operations.

"The current results clearly demonstrate that many of the historical issues hindering operations have been corrected, so our focus can shift  from assessment and refinement to the preparation for our return to the mining of material from the quarry at increased volumes”, said Diamcor CEO Mr. Dean Taylor. "Considering that the results from current exercises are the result of the re-processing of material previously processed and stockpiled, we are very optimistic."