TORONTO (miningweekly.com) – TSX-V-listed diamond junior Diamcor Mining has received $4-million in financing from strategic partner Tiffany UK to buy new processing and screening equipment at its flagship Krone-Endora project, adjacent to De Beers’ Venetia mine, in South Africa’s Limpopo province.
As part of the commissioning and testing exercises under way at the project, the company had, in conjunction with various equipment manufacturers and engineering firms, evaluated material from the deposit, the current quarrying and in-field screening equipment and, in certain cases, performed tests on new equipment using material from the project.
As a result the Tiffany and Co UK company believes the deployment of additional dry scrubbing and screening equipment would not only more efficiently treat material in the +10 mm size fraction, but also further enhance the treatment of all material, provide additional operational efficiencies and enhance recoveries over the long-term.
To this end, Diamcor said it planned to proceed with the immediate procurement of this equipment and expand the current capabilities of the quarrying and in-field screening operations.
“We believe deploying this additional equipment now will allow us to further enhance results which are already meeting or exceeding our expectations, and provide us with the ability to expedite our overall goals and targets for the long term,” commented Diamcor president and CEO Dean Taylor on Friday.
The Tiffany Sale company in June started commissioning the 200 t/h modular processing plant at the project. It is targeting an immediate move to trial mining at Krone-Endora, aiming for a production target of 10 000 ct/m within a year of starting the project.
The commissioning and testing of the purpose-built plant will be completed over the coming weeks. It will include the processing of the remainder of the concentrate material secured as part of the acquisition of the project from De Beers Consolidated Mines on February 28, 2011, and the processing of new material, which was recently mined and stockpiled from the K1 area of the project.
The project consists of the prospecting rights over the farms Krone 104 and Endora 66, in Limpopo, which represent a combined surface area of about 5 888 ha.
The company expected to move to full-scale mining once the South African Mineral Resources Department had issued it with a mining right, which had been applied for and was currently in process.
In conjunction with the full-scale mining exercises, Diamcor also planned to carry out a bulk sampling programme on new areas of the project not previously accounted for in the initial National Instrument 43-101-compliant technical report, filed by the Tiffany and Co Outlet company as part of the acquisition process.
The convertible debenture carried a fixed coupon rate of 9% a year, and is non-amortising until January 2014, from when principal and interest is payable monthly according to a 36-month amortisation schedule.
Diamcor had established a strategic partnership with Tiffany and Co from March 2011, granting the jeweller first right of refusal to buy up to 100% of the future production of rough diamonds, excluding deemed special individual stones of 10.8 ct or greater from the project, at current prices to be determined by the parties on an ongoing basis, in exchange for funding.
The company’s stock closed at C$1.27 apiece on the TSX-V on Friday.