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Diamcor Mining Inc. is focused on commencing near-term commercial production at the Krone-Endora diamond project in northern South Africa.
The Krone-Endora projects sits immediately adjacent to De Beers’ Venetia Diamond Mine.
Strategic partnership with Tiffany & Co. Tiffany owns 9% of DMI’s outstanding shares. DMI also has $7.5-million in term loans and convertible debentures due to Tiffany.
As of our previous report in January 2013, the company was planning to commence trial mining operations within weeks. This was pushed back due to unseasonably heavy rainfall in Q1 2013. Commercial production is expected to commence later this year.
The company has so far sold 6,703 carats for gross proceeds of US$962k. The company is currently working on the sale of an additional 3,500-4,000 carats. Moving forward, the company expects sales to occur every 6-8 weeks.
Recently announced the completion of an 8.4km power line to the project. This completes the infrastructure requirements and the project is now ready to move to 24/7 production.
DMI expects to ramp production up to 10,000 carats per month within 12 months, and 20,000 carats per month within 24 months.
The first “special” diamond was recovered from Krone-Endora this spring, weighing in at 11.23 carats. Since then, six other “special” diamonds have been recovered.
We maintain our fair value estimate of $2.14 per share.
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