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Diamcor hikes in rough diamond recoveries

The tender and sale for the current Quarter of 3,759.62 carats of rough diamonds, along with the delivery of an additional 4,825 carats for tender in Antwerp in the coming weeks. The improvement in the total rough diamonds tendered, sold, and delivered is attributable to the success of current exercises being performed by the Company’s new operational management team at the Company’s Krone-Endora at Venetia Project.

The exercises underway included the evaluation of historical processing practices and procedures at the Project. As part of this evaluation and analysis, the Project’s new management operating team commenced the processing of historical tailings and previously stockpiled material to gather important data.

The initial results of these efforts identified several past deficiencies and other potential enhancements that should be implemented into new standard operating practices and procedures. The past deficiencies identified through these exercises have now been corrected, and new operating procedures are being implemented to enhance operational results and efficiencies moving forward.

The exercises also provided the additional short-term benefit of reducing operating costs associated with heavy equipment and fuel. Of the total 8,584.62 carats of rough diamonds delivered, an initial 3,759.62 carats of rough diamonds sold generating total gross proceeds of USD $569,059.18, resulting in an average price of USD $151.36 per carat.

The Company anticipated this slightly lower than historical average dollar per carat in the tender due to the expectation a higher percentage of smaller, lower quality rough diamonds may be recovered during the exercises being performed. Current price weaknesses in certain categories of the rough diamond market are also thought to have contributed to the lower dollar per carat average achieved, however the Company anticipates the average price per carat will improve to historical levels as the processing of newly mined material begins through the now refined process facilities.

Despite the expected increase in the percentage of smaller diamonds recovered during the current exercises, various larger gem quality rough diamonds in the +2.0 – 10.0 carat range were also recovered, along with a gem quality rough diamond weighing 20.66 which was tendered and sold, and a 28.45 carat gem quality rough diamond which will be offered in the Company’s next tender. The recovery of these sizes of rough diamonds confirms some of the inherent issues with previous processing operations, and the potential for improved results moving forward.

“I am very pleased with the results being delivered by our new operational management team, who have not only confirmed their ability to identify past inefficiencies in both our processing facilities and operations, but also demonstrate their ability to correct these issues and enhance operations moving forward”, noted Diamcor CEO Mr. Dean Taylor. “We believe the current efforts, focus, and results will benefit the Project in a meaningful way moving forward” added Mr. Taylor.

The Company will provide additional updates regarding the progress and results of the exercises underway, the new operations management team, historical issues identified and corrective actions being implemented in the coming weeks and months.

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