|
Diamcor's wholly-owned subsidiary, DMI Diamonds South Africa (Pty) Ltd. ("DMI Diamonds"), holds a 24% interest in the privately held South African company, Nerikets Properties (Pty) Ltd. ("Nerikets"). DMI Diamonds has also secured an exclusive option to acquire the remaining 76% interest in Nerikets, which holds the Prospecting Rights Permit for diamond exploration over a 3,606.44 hectare area of the Farm Hardcastle 366, located on the north bank of the Middle Orange River (see Location Map below).
Although the Hardcastle Alluvial Project is a "grassroots" exploration target, with no proven resources, it is situated in a very prospective area. The Middle Orange River is host to a number of highly productive alluvial operations (Wouterspan, Saxendrift, etc.), with grades in the order of 0.5 cpht and values in the $1,000 USD to $1,200 USD per carat. Some of the highest grades of gravel deposits are found in the "Upper Terrace" deposits that are found as much as 100 meters above the present day valley floor. The eastern two-thirds of the Hardcastle project area falls within this elevation range.
The 2007 drill program at Hardcastle was designed to test the satellite imagery interpretation targets and to "wildcat" the rest of the prospective area of the property for alluvial gravel deposits. An initial drill program was completed in November, with further drilling being considered early in 2008 when a specialized drill rig becomes available. Results are now being evaluated.
|
