Despite ramp-up delay, Diamcor reports improved tender results

VANCOUVER (miningweekly.com) – South Africa-focused project developer Diamcor Mining has reported improved diamond tender sales despite the ramp-up to double output at the Krone-Endora at Venetia mine being dogged by operational and product delivery issues.

The issues have pushed finalisation of the testing, commissioning and calibration of new equipment out by a month to the end of April.

The Kelowna, British Columbia-based junior said Monday the production enhancements have “very recently” started demonstrating an ability to achieve increased processing volumes; seen the crushing and treatment of material up to 45 mm in size; facilitated the processing of material through a dedicated ultra-coarse large diamond recovery circuit; and seen an increase in the overall capacity of the project's final recovery and sorting facilities. This progress was demonstrated by the April tender results, the company reported.

Diamcor said it expected to double targeted increases in processing volumes in the current quarter, after which the company's primary focus would shift towards the planned transition to large-scale trial-mining exercises at the project.

Diamcor held an initial tender and sale of rough diamonds recovered from material in the +1 mm to -15 mm size fractions in February, selling 1 533.37 ct for gross proceeds of $209 949, resulting in an average price of $136.92/ct. A second tender and sale completed in early April sold 2 900.62 ct of rough diamonds recovered from crushed material in the +1 mm to -45 mm size fractions, through the new substantially completed facilities prior to March 13, for gross proceeds of $810 106, resulting in an average price of $279.29/ct. 

The second tender and sale included the sale of four gem-quality rough diamonds which were recovered in the specials category (+10.7 ct):  a 12.13 ct, a 15.46 ct, a 17.97 ct, and a 29.1 ct rough diamond. 

Diamcor has not yet declared commercial production at Krone-Endora at Venetia and recoveries were incidental to the ongoing commissioning and testing exercises performed at the project, which is located directly next to diamond major De Beers’ Venetia mine – South Africa’s largest diamond mine.

In conjunction with its planned transition from project development to large-scale trial mining, Diamcor has appointed Rob De Pretto as the new MD of operations for South Africa of the company's operating subsidiary, replacing outgoing MD for operations Dean Del Frari.