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Diamcor sold 13 K rough in Q1

2016-06-29


Diamcor Mining announced the final results of rough diamonds delivered, tendered, and sold in the Company’s first fiscal quarter ending June 30, 2016 from its Krone-Endora at Venetia project in South Africa. As previously announced on June 2, 2016, the Company completed the tender and sales of 3,031.95 carats of rough diamonds in April 2016, for gross proceeds of USD $386,992.89, resulting in an average price of USD $127.64 per carat. 

In tender and sales completed in May 2016, the Company sold 4,789.18 carats of rough diamonds, for gross proceeds of USD $564,639.06, resulting in an average price of USD $117.90 per carat.  An additional 646.56 carats of rough diamonds, which included 148.29 carats of higher quality goods, were withdrawn from the second tender and sales held in May, and included in the third tender in June of 2016. 

In the final tender and sale for the quarter held in June 2016, the Company sold a combined total of 5,563.59 carats of rough diamonds, for gross proceeds of USD $954,346.49, resulting in an average price of USD $171.53 per carat. This brings the final combined rough diamonds tendered and sold during the first fiscal quarter ending June 30, 2016 to 13,384.72 carats, generating gross proceeds of USD $1,905,978.44, resulting in an average price of USD $142.40 per carat. 

The price per carat realized during the tenders completed during the period were consistent with Company expectations for the goods being offered, and reflect the price weakness in certain categories of rough diamonds during the period. 

Rough diamonds delivered, tendered and sold in the current period were the result of rough diamonds recovered prior to May 29, 2016.  Rough diamonds recovered after May 29 and until June 30, 2016 will be recorded as rough diamond inventory on-hand for the first fiscal quarter ending June 30, 2016.

The first fiscal quarter rough diamond tender and sales of 13,384.72 carats of rough diamonds represent a ~469% increase when compared to the 2,856.24 carats tendered and sold in the Company’s first fiscal quarter ending June 30, 2015.

Total gross revenues of USD $1,905,978.44 realized during the fiscal quarter ended June 30, 2016 represents a ~419% increase in gross revenues when compared to USD $455,227.66 reported for the same period in the previous year.  Rough diamonds tendered and sold were the result of the continued processing of material in the +1.0mm to -26mm size fractions, along with initial limited processing of material from various larger size fractions up to 45mm during the period. 

The combined efforts currently underway are designed to support the continued advancement of objectives consistent with the recommendations of the updated NI 43-101 Technical Report (“Updated Technical Report”) filed by the Company on April 28, 2015, and to aid the Company in arriving at initial production decisions for the Project.