Krone - Endora at Venetia

In December of 2008 Diamcor announced it had signed a definitive asset purchase agreement to acquire the Krone-Endora at Venetia project from De Beers. The acquisition of the Krone-Endora at Venetia project closed on February 28th, 2011 and with the successful closing, the Company is now targeting a return to scaled production in 2014. The Krone-Endora at Venetia project is located directly adjacent to the De Beers Venetia Diamond Mine in the Limpopo province of the Republic of South Africa, approximately 500 km north-northeast of Johannesburg. The Venetia mine is the 3rd largest diamond mine in the world, and South Africa's largest producer of diamonds, accounting for over 50% of South Africa's annual output. A high percentage of the diamonds produced at Venetia are reported as being gem quality, with the rest sold for industrial uses. Given the Krone-Endora projects location directly adjacent to the established Venetia mine, many operational benefits are obvious.  In addition to this, both the previous exploration and the NI43-101 report concluded that the deposit on Krone-Endora at Venetia was not only an alluvial deposit, but also a rare eluvial deposit indicating a direct shift of material from the higher grounds of the Venetia Kimberlite clusters onto the lower surrounding areas of Krone-Endora. Given the eluvial nature of the deposit and its location directly adjacent to the source, the diamondiferous gravels at Krone-Endora at Venetia appear much more consistent in nature with initial grades from drilling and bulk testing much higher than that of typical alluvial type deposits.

As part of the acquisition process an independent NI 43-101 technical report for the Krone-Endora at Venetia project was released by the Company in July of 2009. The report provided an initial inferred resource estimate of 54,258,600 tonnes of diamond-bearing gravels with 1,314,000 carats of diamonds for the areas of the project on which work has been done to date. In conjunction with a planned move to immediate trial-mining exercises on these areas, the Company will concurrently perform additional drilling to determine the full potential of the project and arrive at final production decisions. The deposit is also noted to be near surface, and diamond bearing from surface to bedrock, and with a total depth of 15 meters from surface to bedrock, will allow for a simple, low-cost strip mining operation to be employed.

The Krone-Endora at Venetia preliminary plant design will incorporate a proven, simple, cost effective pan plant system for gravel processing, followed by a traditional hands-off, two-stage final recovery using X-ray flow sort technology and secondary grease belt systems.

 

Krone – Endora at Venetia – Initial Statistics

Current Size of Krone-Endora at Venetia Deposit

54.2 Million tonnes of diamondiferous gravel

Acquisition Details

Definitive agreement Dec 2008 – closed - February 28th-2011

Ownership

70% Diamcor Mining Inc.

30% Nozala Investments (Pty) Ltd.

Operator

DMI Minerals South Africa (Pty) Ltd.

Total Current Initial Inferred Resources

approx 1.3 million carats (NI 43-101)

Type of Mining

Eluvial/Alluvial

Status

Ongoing Testing and Commissioning Exercises

 


Krone-Endora at Venetia Location Map


Proposed Plant Schematic