Alluvial / Eluvial

Alluvial - Diamcor defines Alluvial projects as the exploration for, and mining of, near surface diamond bearing gravels. Alluvial deposits are the result of the pre-historic erosion of the top surface areas of primary Kimberlite sources by ancient rivers or events, and the recovery and processing of associated gravels to recover diamonds which have been transported and deposited along reasonably well defined areas over which these ancient rivers once flowed. These deposited / settled alluvial gravels, and the associated diamonds, are typically found under varying layers of surface structure along graduating terraces in the various key areas over which these paleo-rivers once ran. Diamond bearing alluvial gravels typically produce gem quality stones as a result of the way and distance they have been moved by the paleo-rivers from their originating sources, as the washing or rolling effect of transporting the diamonds tends to destroy small, lower quality stones during the process, while polishing, rounding, and depositing the larger better quality stones into the various settlement areas. Unlike the capital intensive methods of recovering diamonds underground from a primary Kimberlite source, the alluvial gravel recovery process is done via a simple strip mining and earth moving process using heavy equipment with no requirement for any underground work or associated infrastructure.

Eluvial - Diamcor defines "Eluvial" projects, which are rare by their very nature, as deposits which occur as the result of a direct shift of materials from a known source.  These types of deposits typically occur directly adjacent to their corresponding source, and have unique characteristics in that the deposits are usually more uniform in nature, and typically exhibit grades which are much higher due to the short distance that the materials have travelled.  The De Beers Krone-Endora acquisition, which closed February 28th, 2011, has been identified as an eluvial deposit of higher grade basal gravels covered by a lower grade alluvial deposit.  Given the nature of both Alluvial, and Eluvial deposits, they can typically be recovered via simple strip-mining methods, and as such they can be brought into production relatively quickly.  The Company carefully targets and selects certain alluvial and eluvial projects due to their potential to generate near term production.

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