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Message from The PresidentDear Shareholders With our past operational experience as a supplier of rough diamonds to the world market established, and our work at So Ver successfully completed, the past 24 months for Diamcor has been focused on acquisition of new production based projects. Planning and preparation now being completed are aimed at allowing us to achieve our targeted return to production in 2010, and with rough diamond prices and demand now showing signs of strength, we believe the timing of our current efforts will benefit us in the future. The increasing demands from emerging markets of China and India are expected to continue to grow, and when these new demands are combined with the recovery of key markets such as the US; a significant opportunity will emerge. As most of you are aware, the previously announced pending acquisition of the Krone-Endora project from De Beers is now in the final stages of closing, and the Company believes this project has the best short-term potential to allow us to achieve our desired short-term production targets of 7,000 - 10,000 carats per month within 12 - 18 months. Information documented in the recent NI43-101 reports on Krone-Endora provided initial estimates of 54 million tonnes of diamondiferous graveland 1.3 million carats of diamonds in a rare, and attractive, "elluvial" and "alluvial deposit which is proposed to have originated from the world class Venetia property located directly adjacent to Krone-Endora. In addition to the benefits of being located in an area with established infrastructures, the deposit is near-surface in nature, and thus recovery can be done via a low cost strip-mining type of operation. Our post-closing plans are to follow the recommendations of the NI43-101 report and move into a trial-mining phase in conjunction with an additional closer spacing drilling programme aimed at identifying additional resources and establishing our long-term mining plans for the project. In addition to ongoing efforts surrounding Krone-Endora, the Company also continues to advance other discussions aimed at acquiring other production based projects to enhance shareholder value, and enable us to achieve our near-term aggregate production target of 30,000 carats per month within 24 - 36 months. We agree with many industry experts that a pending shortage of rough diamonds in the near future is very likely and we are planning now to ensure that we are positioned to take advantage of that scenario by maximizing our production potential for the long-term. We look forward to 2010 and the current opportunities for growth we are working towards and thank you for your continued interest and support. Sincerely, Dean H. Taylor |
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