2007


Final So Ver Production Results and Facility Update

 

Kelowna, B.C.-January 15, 2007: Mr. Wayne Wolf, President, Diamcor Mining Inc. (“Diamcor”) announces the final operational results for the Company’s So Ver tailings re-treatment facility located near Kimberley South Africa. These results reflect the final processing of tailings materials by the main larger processing plant which has now been shut down as intended and previously announced on November 8, 2006.

In the second quarter period, from July 1, 2006 thru September 30, 2006, the production results from continued operations were as follows. For the month of July 2006 a production run time of 90.52% allowed the plant to process 26,994 tons of raw tailings, which resulted in the recovery of 1,525.22 carats of diamonds. August 2006 showed a similar production run time of 91.40%, with an increase in the raw tailings material being processed to 32,454 tons, but with a reduction in the quality of the tailings processed, only 1,229.22 carats of diamonds. September 2006 production run time fell to 84.02%, and 26,250 tons of raw tailings materials were processed. The quality of tailings processed in September continued to decline as announced and only 670.72 carats of diamonds were recovered. The above results combined for the entire quarter produced an average production run time for the period of 88.65% with the total raw tailings material processed during the quarter at 85,698.00 tons, for an average of 28,566 tons of raw tailings processed per month. The total diamonds recovered for the three month period was down to 3,425.16 carats.

These lower production results continued at So Ver into October 2006, and thus confirmed that the remaining quality of tailings could not support the costs associated with processing material through the larger facility. The Company announced its intentions to shut down the main facility in a press release on November 8, 2006. Since that time, operational management at the facility has overseen the process of salvaging much of the larger plant, and ensuring that all rehabilitation obligations associated with the facility are in order, or under way. Evaluating the possibility of using smaller portable processing equipment to work any remaining tailings reserves is also under way, but no processing of materials has been resumed since the announced shut-down. Any further information regarding a return to limited production will be provided once available.

Diamcor Mining is a junior resource company with established operations and production history in South Africa. The Company will continue to use this established operating history and industry knowledge in an effort to increase its current production of diamonds through the development and or, acquisition of quality properties in the region. Diamcor trades on the Canadian TSX Venture Exchange under the symbol DMI.

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.

For further information, please contact:
Mr. Wayne Wolf
Diamcor Mining Inc.

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


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