Diamcor successfully completes second rough tender in Q3

TORONTO (miningweekly.com) – Vancouver-based diamond producer Diamcor Mining has successfully concluded a second rough diamond tender during its fiscal third quarter ending December 31.

The TSX-V-listed firm had not yet declared commercial production at its Krone-Endora at Venetia mine, located directly next to De Beers’ Venetia diamond mine in South Africa’s Limpopo province – the country’s largest diamond mine – and recoveries were incidental to the ongoing commissioning and testing exercises performed at the project.

Diamcor reported sales of 2 403.64 ct of rough diamonds, for gross proceeds of $360 016.23, resulting in an average price of $149.78/ct. In its first of two rough diamond tenders planned for the third fiscal quarter, Diamcor sold 6 859.31 ct for gross proceeds of $813 440.67, with an average price of $118.59/ct.

This brought the combined rough diamonds tendered and sold during the third fiscal quarter, including those rough diamonds sold to the South African State Diamond Trader during the period, to 9 469.34 ct, generating gross proceeds of $1.2-million, for an average price of $127.02/ct.

Diamcor stated that the price per carat realised during the tenders completed during the quarter was in line with company expectations, given current market conditions. According to analysts, diamond prices would continue to be under pressure in 2016, as sluggish demand had dampened sales.

Diamcor advised that the results represented about a 95% increase in total rough diamonds tendered and sold, when compared with 4 845.93 ct tendered and sold in the company's second fiscal quarter ending September 30, and about a 78% increase in gross revenues when compared with $676 835.08 gross revenues reported in the same period.

Rough diamonds recovered after the November 16 second tender cut-off date would be recorded at the end of the period as rough diamond inventory on-hand.

Rough diamonds tendered were the result of the continued processing of material in the +1 mm to -26 mm size fractions, along with limited processing of material from various larger size fractions during the period.