Diamcor Mining Inc. yesterday reported the results of its first tender and sale in the Company’s third fiscal quarter ending December 31, 2019. In this first tender, the Company sold 4,033.01 carats of rough diamonds for total gross proceeds of US$424,072.44; thus realising an average price of US$105.15 per carat.
“The Company anticipated this lower than historical average dollar per carat in the tender due to the expectation that a higher percentage of smaller, lower quality rough diamonds may be recovered during the exercises being performed,” Diamcor explained. “Price weaknesses in certain categories of the rough diamond market also contributed, to a lesser extent, to the lower dollar per carat average achieved.”
The Company, however, is confident the average price per carat will improve to “historical levels” as the processing of mined material begins through the refined processing facilities.
Though, in the main, the production from the current exercises was of smaller diamonds, some larger gem quality rough diamonds in the +2.0 – 10.0 carat range were also recovered. “The recovery of these sizes of rough diamonds continues to confirm the issues associated with previous processing operations, and the potential for improved results as mining operations return to the processing of material from the quarry,” Diamcor noted.
Moreover, the Company has delivered an additional 6,369.00 carats which it expects to sell at a second tender in Antwerp in November; and plans to hold a final tender of the tentatively in December. “The total rough diamonds expected to be delivered and tendered in the Company’s third fiscal quarter represents an increase when compared to 3,882.82 carats delivered and tendered in the Company’s second fiscal quarter ended September 30, 2019,” Diamcor said.
Diamcor CEO Dean Taylor commented: “I continue to be very pleased with the results being delivered by our new operational management team. The current results clearly demonstrate that many of the historical issues hindering operations have been corrected, so our focus can shift from assessment and refinement, to the preparation for our return to the mining of material from the quarry at increased volumes.”
He added: “Considering that the results from current exercises are the result of the re-processing of material previously processed and stockpiled, we are very optimistic given that, effectively, these results can be combined with historical recoveries and results associated with the same material for planning purposes going forward.”
The Company also announced the appointment of Dr. Kurt Petersen as the Company’s Managing Director of Operations for South Africa. “Dr. Petersen has 20 years experience in the diamond industry and extensive knowledge and experience in the areas of process modelling and simulation,” Diamcor said highlighting his background. “He has worked with and consulted to some of the diamond industry’s leading companies and is highly regarded and experienced in the design of diamond plants, as well as the optimization of recovery performance and operational processes.”
Furthermore, Diamcor also reported that it has granted incentive stock options (Options) to purchase an aggregate 6,500,000 common shares (Shares) to certain officers, directors, employees, and consultants pursuant to the Company’s 20% fixed stock option plan (the Stock Option Plan). All Options are exercisable at a price of $0.11 per Share, for a period of five years expiring on October 21, 2024. No shares acquired upon exercise of the Options may be traded prior to February 22, 2020, the Company underlined. “The Company’s last issuance of options was on March 21, 2016 and with today’s issuance the Company now has total Options issued to purchase an aggregate of 9,450,000 Shares at an average exercise price of $0.39 per share,” Diamcor said.
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