TSX.V Symbol (DMI)
KELOWNA, BC, Feb. 26, 2015 /PRNewswire/ - Diamcor Mining Inc.
(TSX-V.DMI / OTCQX-DMIFF), (the "Company") announces the results
for its third fiscal quarter ended December
31, 2014, and continues the planned upgrades at Krone-Endora
at Venetia (the "Project).
For the third fiscal quarter ended December 31, 2014, the Company sold 3,579.07
carats of rough diamonds generating gross revenues of CDN
$886,843, net of commissions and
fees, for an average price of US $221.96 per carat as compared to sales of 3,955
carats and gross revenues of CDN $1,396,591 net of commissions and fees, for the
same period ended December 31,
2013. The Company's revenues for the third quarter during the
prior fiscal year were positively impacted by the recovery of a
91.7 carat gem quality diamond which sold for US $817,920 in that period. The Company
recovered an additional 1,678.18 carats during the third fiscal
quarter 2015 which were held in inventory at the end of the fiscal
quarter. For the nine month period ended December 31, 2014 gross revenues were CDN
$2,029,448 as compared to CDN
$2,831,104 for the same nine month
period during the prior fiscal year. Exclusive of
revenues realized from the sale of the 91.7 carat diamond sold
during the nine month period ended December
31, 2013, revenues remained relatively constant for the nine
month period on a year over year comparative basis.
Rough diamonds recovered and sold during the current period were
the result of continued processing of material in the +1.0mm to
-26mm size fractions, with the vast majority of this material being
from the lower-grade upper gravels from the K1 area of the Project.
Material in the +26.0mm size fractions continued to be
screened off and stockpiled during the period, pending completion
of the planned expansion at the Project. The Project upgrades
underway are designed to effectively treat the +26.0mm size
fractions and also designed to enhance efficiencies related to all
sizes of material. The Company expects the expansion to be
complete with upgrades implemented in the fiscal quarter commencing
April, 2015.
During the third fiscal quarter ended December 31, 2014, the Company incurred operating
expenses of $709,449, a modest
increase when compared to $573,720,
realized in the same period during the prior fiscal year.
However, for the nine month period ended December 31, 2014, operating expenses were
$1,103,804, a significant 29% decline
as compared to operating expenses of $1,557,889 realized in the same period during the
prior fiscal year. Operating expenses are primarily
management, contracted labour, equipment, utilities, fuel, and
other expenses incurred at the Project. The decrease in
operating expenses during the nine month period is primarily
attributable to reduced labour, contracted equipment and fuel
requirements in the current fiscal year due to the automation of
processes implemented by the Company over the past few fiscal
quarters. The Company realized net income from operating
activities of $177,344 during the
quarter ended December 31, 2014, as
compared to $822,871 for the same
period during the prior fiscal year. For the nine month
period ended December 31, 2014, net
income from operating activities was $925,644 as compared to $1,273,205 realized for the same nine month
period during the prior fiscal year. As mentioned above, net
income from operating activities during the prior fiscal year was
positively impacted as a result of revenues realized from the
recovery of the large 91.7 carat diamond during that period.
Total general and administrative expenses for the fiscal quarter
ended December 31, 2014 were
$829,065 as compared to $799,572 realized in the same period during the
prior fiscal year. The modest increase in general and
administrative expenses is primarily attributable to an increase in
accretion and depreciation expenses from $229,316 in the third fiscal quarter ended
December 31, 2014 from $179,418 realized in the same period during the
prior fiscal year. Interest and bank charges related to the
Company's Tiffany & Co financing facilities were $171,856 in the current fiscal quarter ended
December 31, 2014 as compared to
$181, 413 for the same period during
the prior fiscal year. For the nine month period ended
December 31, 2014 preliminary general
and administration expenses were $2,458,660 a significant decrease when compared
to $4,626,485 incurred in the same
nine month period during the prior fiscal year. The
significant reduction in expenses for the nine month period ended
December 31, 2014, was primarily
attributable to the recognition of no stock based compensation
expenses in the current period as compared to $2,359,000 realized in the same period during the
prior fiscal year ended December 31,
2013.
For the fiscal quarter ended December 31,
2014, the Company incurred a net loss before income tax of
$651,721 or $0.01/share, as compared to net income before
income tax of $23,299 or $0.01/share, realized in the same period during
the prior fiscal year ended December
31, 2013. For the nine month period ended
December 31, 2014, the net loss
before income tax was $1,533,016 a
significant improvement as compared to a net loss before income tax
of $3,353,280 for the same nine month
period during the prior fiscal year.
Net cash flow used in operating activities for the fiscal
quarter ended December 31, 2014 was
$432,867. For the nine month
period ended December 31, 2014, net
cash flow used was $1,055,193. During the recent fiscal
quarter the Company closed a $3.13M
brokered and non-brokered private placement to augment the planned
further expansion of its Krone-Endora at Venetia (the "Project")
mining facilities. In support of the Company's plans, Tiffany
& Co. Canada agreed to one
year deferral and loan extensions, effective December 1, 2014, of all principal and interest
payments accruing pursuant to the terms of its loan and convertible
debenture financings with the Company. Interest will continue
to accrue on the outstanding balances of the financing facilities
during this period. Payments of both principle and interest
will once again commence in January, 2016. As of December 31, 2014, the Company has cash and cash
equivalents of $3,371,111.
During the Company's third fiscal quarter ended December 31, 2014, preparations continued in
connection with the updating of the Company's initial NI43-101
technical report. Once filed, the updated report is expected
to reflect the nature and extent of the infrastructure development
achieved at the Project, as well as other relevant data available
to this point.
The recovery of all rough diamonds during the fiscal quarter
ended December 31, 2014, were
incidental to the ongoing commissioning and testing exercises
performed at the Company's Krone-Endora at Venetia project.
The above-noted testing exercises and incidental recoveries do not
form part of the initial NI43-101 Technical Report filed by the
Company on July 30, 2009, and thus no
general grade, price, or quality determination is intended by the
Company at this time due to the nature and purpose of the
processing of this material.
The Company's complete financial results and associated
Management Discussion and Analysis for its third fiscal quarter
ended December 31, 2014, can be
accessed at www.sedar.com, or on the Company's website at
www.diamcormining.com.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publically traded
junior diamond mining company which is listed on the TSX Venture
Exchange under the symbol V.DMI, and on the OTC QX International
under the symbol DMIFF. The Company has a well-established
operational and production history in South Africa and extensive prior experience
supplying rough diamonds to the world market.
About the Tiffany & Co. Alliance
The Company has established a long-term strategic alliance and
first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous
New York based Tiffany & Co.,
to purchase up to 100% of the future production of rough diamonds
from the Krone-Endora at Venetia Project at then current prices to
be determined by the parties on an ongoing basis. In
conjunction with this first right of refusal, Tiffany & Co.
Canada also provided the Company
with financing to advance the Project. Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF. For additional information on
Tiffany & Co., please visit their website at
www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired
the Krone-Endora at Venetia Project from De Beers Consolidated
Mines Limited, consisting of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in
South Africa. On
September 11, 2014, the Company
announced that the South African Department of Mineral Resources
had granted a Mining Right for the Krone-Endora at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. The
deposits which occur on the properties of Krone and Endora have
been identified as a higher-grade "Alluvial" basal deposit which is
covered by a lower-grade upper "Eluvial" deposit. The deposits are
proposed to be the result of the direct-shift (in respect to the
"Eluvial" deposit) and erosion (in respect to the "Alluvial"
deposit) of material from the higher grounds of the adjacent
Venetia Kimberlite areas. The deposits on Krone-Endora occur in two
layers with an average total depth of less than 15.0 metres from
surface to bedrock, allowing for a very low-cost mining operation
to be employed with the potential for near-term diamond production
from a known high-quality source. Krone-Endora also benefits
from the significant development of infrastructure and services
already in place due to its location directly adjacent to the
Venetia Mine.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc.,
P.Geo.), is Manager of Exploration & Special Projects for
Diamcor Mining Inc., and the Qualified Person in accordance with
National Instrument 43-101 responsible for overseeing the execution
of Diamcor's exploration programmes and a Member of the Association
of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has
reviewed this press release and approved of its contents.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Tel (250) 864-3326
www.diamcormining.com
This press release contains certain forward-looking
statements. While these forward-looking statements represent
our best current judgement, they are subject to a variety of risks
and uncertainties that are beyond the Company's ability to control
or predict and which could cause actual events or results to differ
materially from those anticipated in such forward-looking
statements. Further, the Company expressly disclaims any
obligation to update any forward looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Diamcor Mining Inc.
