2006


So Ver Production Update - To FYE March 31, 2006

 

KELOWNA, BC, Jun 1, 2006 (Canada NewsWire via COMTEX News Network) -- TSX.V Symbol (DMR)

Mr. Wayne Wolf, President, Diamcor Mining Inc. ("Diamcor") is pleased to announce the operational results for the third and fourth quarters ending December 31, 2005 and March 31, 2006 respectively, for the Company's So Ver Diamond Mining property.

For the third quarter period from October 1, 2005 thru December 31, 2005 the production results from operations were as follows. In the month of October a production run time of 88.30% allowed the plant to processed 32,025 tons of raw tailings, which resulted in the recovery of 1,529.30 carats of diamonds. November saw an increase in production run time to 90.55%, with a slight decrease in raw tailings material being processed at 31,228 tons, but recoveries were strong for the facility with 1,896.39 carats recovered. December 2005, as always results in the usual two week run due to the Christmas season break, and during that time the facility production run time was 83.75%, with 12,222 tons of raw tailings material processed, which resulted in the recovery of 674.50 carats of diamonds. The above results produced the following combined numbers and averages for the third quarter: Production run time average 87.53%, total raw tailings material processed 75,475 tons for an average of 25,158 tons per month, and total diamonds recovered at 4100.19 for an average of 1366.73 per month.

For the fourth quarter period from January 1, 2006 thru March 31, 2006 the production results from operations were as follows. In the month of January the facility remained in use for the previously disclosed processing and work related to the Company's Doornkloof initial exploration project, and therefore no recoveries from tailings processing were recorded. The plant returned to normal operation for February which saw a production run time to 80.85%, and a large decrease in raw tailings material being processed at 15,275 tons. This lower processing ability was directly related to the beginning of the historically rainy season, and the unusually high amount of moisture that fell consistently throughout most all of February and into March. Even with these challenges the experienced team at So Ver were able to work several areas of quality tailings to allow for the recovery of 1,442.04 carats for the month. Early March remained challenging, but facility production run time increased to 84.61% as the rains subsided. The plant processed 16,020 tons of raw tailings material processed, which resulted in the recovery of 1,313.66 carats of diamonds. The above results produced the following combined numbers and averages for the fourth quarter: Production run time for the two operating months averaged 82.73%, total raw tailings material processed was 31,295 tons for an average of 10,432 tons per month, and total diamonds recovered was 2,755.70 for an average of 1,377.85 per month for the two months running.

These production results combined with the previously announced numbers resulted in the following combined numbers for the entire fiscal year from April 1, 2005 to March 31, 2006. Total production run time for the facility averaged for the year, excluding the one month period of January used for exploration efforts, was 82.11%. A total of 283,598 tons of raw tailings was processed by the facility, which resulted in an average for the 11 months of operations at 25,782 tons per month. Tailings processed resulted in a total of 17,726.27 carats of diamonds being recovered for the year, and an average 1,611.48 carats recovered per month for the 11 months of normal operations.

"We are extremely pleased with both the production results for the year, and for the hard work all our employees have put in to allow us to achieve them while planning for growth," Says Diamcor President and CEO, Wayne Wolf. "Not only have we been able to continue with an excellent recovery level for the year, but we were able to adapt both our people and facilities to complete the initial efforts of recovery and processing of the bulk samples for our Doornkloof project at a fraction of what it normally cost for that type of activity."

Diamcor is a Canadian based junior diamond mining and exploration company which trades on the Canadian TSX Venture Exchange under the symbol DMR.

Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Diamcor Mining Inc.

Diamcor Mining Inc.
Phone: (250) 862-3212
Website: www.diamcormining.com