Name of the Project
Krone-Endora at Venetia project expansion.

Location
Limpopo, South Africa.

Project Owner/s
Diamcor Mining.

Project Description
The project entails a two-phase expansion of the processing facilities.

The first phase will double the current processing volumes in the near term. This phase includes the installation of a new materials handling step (scrubbing), the improvement and expansion of the diamond concentration system, the installation of a new electronic diamond X-ray recovery unit and various other refinements to lower water and power consumption on a per-ton basis.

The second phase is aimed at finalising the project’s mining and processing scheme to significantly enhance long-term processing volume capabilities as part of the company’s overall long-term mineral project management strategy. This phase will also focus on completing the groundwork necessary for future expansion capabilities.

Diamcor plans to consolidate its current facilities to further increase throughputs, reduce the overall processing footprint and unit costs, and minimise environmental disturbance. Additional heavy equipment will also be added if required to support these objectives. This overall strategy will be supported by the parallel activities of drilling and bulk sampling of prospective target areas.

The project is not expected to affect the processing efforts currently under way.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Phase 1 of the project has been completed. The initial upgrades were originally targeted for completion by the end of September 2021.

Latest Developments
Diamcor Mining intends to complete a term loan financing of up to C$1.5-million to expedite efforts to support the processing of material at significantly higher volumes.

The funds will also be spent on the advancement of work programmes previously started, preparations for bulk sampling aimed at expansion into the greater portions of the project and for general corporate purposes.

Term loans under the financing will be unsecured and carry a yearly interest rate of 15%. 

The company will issue 150 000 common shares in its authorised share capital, along with 75 000 share purchase warrants, for every C$100 000 of principal advanced under the financing by participants or lenders.

The financing is subject to regulatory approval of the TSX-V, along with the completion of all the definitive documentation and filings as required.

Diamcor believes that the short-term issues that caused the reduction in demand and depressed prices throughout the rough-diamond sector this year are now showing signs of improvement, with the potential for recovery in 2025 widely expected by most in the industry.

Excess inventories throughout much of the industry’s supply chain, owing to elevated post-Covid buying, are now becoming more balanced. More restrictive sanctions are also being imposed on Russian diamonds. 

Further, many of the world’s largest luxury retailers are launching significant advertising campaigns to educate consumers on the differences between lab grown diamonds and the long-term value and rarity of natural diamonds, Diamcor has pointed out.

It posits that these elements – when combined with the expected future reduction in global production, owing to the age of existing mines and the lack of any significant new discoveries in more than ten years – provide the potential for companies with the ability to supply natural nonconflict rough diamonds to be very well-positioned moving forward.

Diamcor is also continuing to advance discussions with various larger industry groups and financiers on the provision of larger, nondilutive facilities to support future growth.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Diamcor Mining, tel  +1 250 862 3212 or email info@diamcormining.com.