Company Overview

Diamcor Mining Inc. (TSX.V-DMI) is a fully reporting Canadian publicly traded company which is listed on the Toronto Venture Exchange under the symbol V.DMI. The Company has a well established operational history of diamond mining and production at its regional offices in the world famous diamond region of Kimberley, South Africa.

The Company’s recently announced pending acquisition of the Krone-Endora project from DeBeers Consolidated Mines Limited is now is the final stages of closing, and demonstrates the initial success of careful planning by Diamcor's Management over the past 24 months. Unlike the vast majority of the juniors in the diamond sector who are exploration focused companies, the Diamcor team indicated its focus would be one of securing projects with the potential to provide near-term production and revenues with suitable long-term life of mine scenarios for the Company. This strategy positions the Company with the ability to take advantage of the predicted long-term shortfall in worldwide rough diamond production against an ever increasing global demand due to the world's limited existing diamond mine production capabilities. The Company's current announcements support its desired plans to achieve significant production growth by acquiring quality non-core projects and assets through established relationships it has with some of the world’s largest diamond companies, and the Company is now focused on using its well established operational and production history, along with a very attractive corporate structure, to achieve these stated goals. The Company is anticipating the current pending acquisition of Krone-Endora will allow it to initially achieve a targeted increase from past monthly production capabilities of 1,500-2,000 carats per month to a new production target figure of 7,500-10,000 carats per month within a 12 month period. The Company is also continuing its efforts and discussions aimed at securing other near-term production based projects with long term revenue capabilities. Diamcor’s near-term plans are to establish the full potential of Krone-Endora, and acquire additional near-term production projects, that would allow it to achieve targeted production levels of 25,000 carats to 35,000 carats per month within 24-36 months.

Through the Company's extensive 24/7 experience processing kimberlite tailings using modern technologies, and as part of this production growth strategy, in December of 2008, the Company announced it had signed a definitive asset purchase agreement to acquire the Krone-Endora project from De Beers Consolidated Mines Limited.  The Krone-Endora project is located directly adjacent to the third largest diamond mine in the world, Venetia (9.0M carats/year - 2007).  The deposit at Krone-Endora has been identified as being both a rare, and higher-grade, "eluvial" shift of material from the higher ground of Venetia onto the lower properties of Krone and Endora, as well as a more modern “alluvial” deposit for the upper gravels.  The acquisition is currently in the final stages of closing, after which the Company plans to proceed immediately with a recommended trial mining and drilling program aimed at establishing production, additional resources, and the long-term mining plans for Krone-Endora. 

The deposit at Krone-Endora is near-surface in nature (approx. 15 m), and thus will allow the Company to employ a low-cost "strip-mining" type of operation.  A NI43-101 report released in July 2009 provided initial inferred estimates of 54,000,000 tons of diamondiferous gravel and 1,300,000 carats on the areas of the project which have been currently reviewed.  Using these estimates, and the Company’s scenario modeling methods, the Company is targeting initial production levels approaching 7,000 - 10,000 carats per month within 12 months, and an initial project life of 10+ years.  These production estimates will be adjusted as the Company completes its planned trial-mining and additional drilling on current and new areas yet unaccounted for.  The Company is also engaged in various discussions to acquire additional near-term production projects aimed at adding further production growth.