Diamcor Continues To Achieve Strong Dollar per Carat Results in the First Tender and Sale of Its New Fiscal Year

Rhea-AI Summary

Diamcor Mining Inc. reported strong results from its first tender of the fiscal year, selling 2,122.76 carats of rough diamonds for total revenues of USD $591,733, averaging USD $278.78 per carat. The sale included significant gems, with 1,879.87 carats sold in Dubai generating USD $564,189 at an average of USD $300.12 per carat. Demand remained steady, although some weakness was noted in lower quality diamonds. The company is focused on increasing processing volumes amidst ongoing COVID-19 challenges.

Positive

• Total rough diamonds tendered and sold: 2,122.76 carats.
• Initial gross revenues for the quarter: USD $591,733.
• Average price per carat achieved: USD $278.78.
• Strong sales in Dubai with 1,879.87 carats sold for USD $564,189 at USD $300.12 per carat.
• Continued good demand and pricing for most rough diamond assortments.

Negative

• Slight weakness in demand for lower quality smaller diamonds.

KELOWNA, BC / ACCESSWIRE / April 22, 2021 / Diamcor Mining Inc. (TSX.V:DMI)(OTCQB:DMIFF) ("Diamcor" or, the "Company") today announced its results from the tender and sale of rough diamonds recovered from the processing of quarry material at the Company's Krone Endora at Venetia Project (the "Project"). The results reconfirmed the potential for increased average dollar per carat values from the operational and processing refinements made by the Company, and from the recovery of larger gem quality rough diamonds in the special category (+10.8 carats).

In the Company's first offering of its new fiscal year starting April 1, 2021, the Company tendered and sold 2,122.76 carats.

Highlights:

• The total combined rough diamonds tendered and sold was 2,122.76 carats, generating initial gross revenues for the quarter of USD $591,733, resulting in a combined average price of USD $278.78 per carat.
• Of the total, 1,879.87 carats of rough diamonds were tendered and sold in Dubai UEA, generating gross revenues of USD $564,189, resulting in an average price of USD $300.12 per carat for these rough diamonds.
• The Dubai UEA tender and sale include two rough diamonds in the specials (+10.8 carats) category, a 12.87 carat gem quality rough diamond, and an 11.13 carat rough diamond.
• Of the above total, 242.89 carats of run of mine rough diamonds were sold to the South African State Diamond Trader, for gross revenues of USD $27,584, resulting in an average price of USD $113.57 per carat for these rough diamonds.
• In addition to the above total rough diamonds tendered and sold, approximately 1,000 additional carats of rough diamonds, including two rough diamonds in the +10.8 specials category, a unique 14.09 carat square/cube gem quality rough diamond and a 16.13 carat rough diamond, were also delivered and will be included in the Company's next tender and sale.

The size and quantity of special rough diamonds in this sale and tender, and those to be offered in the Company's upcoming tender, are not seen as uncommon for the Project, which continues to demonstrate its potential to generate excellent dollar per carat results and revenues from processing quarry material.

Additional Highlights:

• The average dollar per carat achieved for the balance of the 2,122.76 carats of rough diamonds tendered and sold, excluding the noted gem quality 12.87 carat diamond, continued to remain strong, as in previous recent tender and sales, at USD $234.73 per carat.
• Overall demand and pricing in a majority of the rough diamond assortments tendered and sold by the Company continued to meet expectations, with the exception of some slight weakness in lower quality smaller goods.

"We are pleased with these excellent results, which are further confirmation of our ability to achieve strong dollar per carat and gross revenue numbers while continuing to operate on lower volumes due to the global Pandemic", stated Mr. Dean Taylor, Diamcor CEO. "Despite continuing to operate on a reduced basis to stringently manage costs, our ongoing planning and preparations to increase processing volumes remains a key focus."

About Diamcor Mining Inc.

Diamcor Mining Inc. is a fully reporting publicly traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI, and on the OTC QB International under the symbol DMIFF. The Company has a well-established operational and production history in South Africa and extensive prior experience supplying rough diamonds to the world market.

About the Tiffany & Co. Alliance

The Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at then current prices to be determined by the parties on an ongoing basis. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with financing to advance the Project. Tiffany & Co. is a publicly traded company which is listed on the New York Stock Exchange under the symbol TIF. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

About Krone-Endora at Venetia

In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers' flagship Venetia Diamond Mine in South Africa. On September 11, 2014, the Company announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project's total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. The deposits which occur on the properties of Krone and Endora have been identified as a higher-grade "Alluvial" basal deposit which is covered by a lower-grade upper "Eluvial" deposit. The deposits are proposed to be the result of the direct-shift (in respect to the "Eluvial" deposit) and erosion (in respect to the "Alluvial" deposit) of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with a maximum total depth of approximately 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine.

Qualified Person Statement:

Mr. James P. Hawkins (B.Sc., P.Geo.), is Manager of Exploration & Special Projects for Diamcor Mining Inc., and the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programmes and a Member of the Association of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has reviewed this press release and approved of its contents.

On behalf of the Board of Directors

Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
www.diamcormining.com

For further information contact:

Mr. Dean H. Taylor
Diamcor Mining Inc
DeanT@Diamcor.com
+1 250 862-3212

Mr. Rich Matthews
Integrous Communications
rmatthews@integcom.us
+1 (604) 355-7179

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

WE SEEK SAFE HARBOUR

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Diamcor Mining Inc.

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FAQ

What were Diamcor Mining's revenue results for the first tender of its fiscal year?

Diamcor Mining generated initial gross revenues of USD $591,733 from the sale of 2,122.76 carats of rough diamonds.

What was the average price per carat for Diamcor Mining's recent sale?

The average price per carat achieved was USD $278.78.

How many carats did Diamcor Mining sell in Dubai?

Diamcor Mining sold 1,879.87 carats in Dubai, generating gross revenues of USD $564,189.

What challenges is Diamcor Mining facing during the pandemic?

Diamcor Mining continues to operate on reduced volumes due to the global pandemic while managing costs.

What future plans does Diamcor Mining have regarding processing volumes?

The company is planning to increase processing volumes as a key focus despite current challenges.