KIM Kimcor

RNS Number:8096S
KimCor Diamonds plc
22 April 2008



                                                                   22 April 2008



                              KimCor Diamonds plc
                          ("KimCor" or the "Company")

                               Operations Update


KimCor, the AIM quoted diamond exploration and development company, is pleased
to provide the market with an update on current operations.  The recently
modified processing plants are operating to capacity and good progress has been
made on the remaining capital programmes.



Highlights



*         SMI4 tailings plant operating to design capacity following the Phase 1
          modifications;

*         SMI4 is achieving its budgeted recoverable grade of  6 carats per
          hundred tonnes ("cpht");

*         SMI4 Phase 2 construction remains on schedule for production rates to
          increase to 150,000 tonnes per month ("tpm") during May;

*         Newlands processing plant is operating to design capacity and is
          achieving recoverable diamond grades in line with budget;

*         Hoisting of kimberlite ore has recommenced at Blaauwbosch mine 3 months
          ahead of schedule;

*         Nooitgedacht alluvial mine continues to achieve recovered grades in
          excess of budget.



Martyn Churchouse, CEO of KimCor, commented: "The modified plants are performing
to specification and the Company has now reached the point where it can look
forward to extended periods of production which will enable us to provide
shareholders with regular updates of production and diamond sales".





SMI4



The SMI4 plant is processing tailings at a rate of approximately 2,000 tonnes
per day with a recovered grade averaging 6cpht.  The Phase 2 expansion scheduled
for completion during May is expected to result in monthly diamond production of
approximately 9,000 carats or 108,000 carats per annum.





Newlands



The Newlands plant is operating to a capacity of 30,000tpm.  At present 5,000tpm
of kimberlite ore and 25,000tpm of tailings are being processed monthly.



Within the next few months, the rate of processing of kimberlite ore is expected
to increase as new mining faces are developed underground. By December year end,
the Company has set itself target of 14,000tpm of kimberlite ore production with
the balance of 16,000tpm being tailing processing.





Nooitgedacht



Nooitgedacht has achieved an average recovered grade of 1.5cpht, fifty per cent
above budget.



Production rates have been maintained at the improved level of 30,000 tpm.



The Company is currently considering the purchase and installation of mobile
diamond recovery pans to further increase production rates.





Blaauwbosch



Priority underground development has been completed 3 months ahead of schedule
and the hoisting of kimberlite ore has recommenced on the mine.



For the foreseeable future mining costs are expected to be low as approximately
120,000 tonnes of kimberlite in remnant pillars will be mined from 145m Level to
surface.



Recoverable grades are expected to be diluted by internal waste but this lower
grade should be offset by the absence of drilling and blasting required to mine
the pillars.



At the same time further development work is continuing below the 145m Level to
access the remaining indicated 1.09 million tonnes of kimberlite ore with a
recoverable grade of 30cpht.





Enquiries:



KimCor Diamonds plc                                          Tel: 020 3178 6179

Martyn Churchouse



Strand Partners Limited                                       Tel: 020 7409 3494

Simon Raggett

Warren Pearce

Victoria Milne-Taylor



Bishopsgate Communications Ltd                   Tel: 020 7562 3350

Maxine Barnes

Nick Rome










                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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