| Wed 14 Jan 2009, 9:00 | | BCD - BRC Diamondcore Ltd - BRC Diamondcore Issues Bulk Sampling Update |
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BCD
BCD
BCD - BRC Diamondcore Ltd - BRC Diamondcore Issues Bulk Sampling Update
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE ISSUES BULK SAMPLING UPDATE
Toronto, Canada and Johannesburg, South Africa - January 14, 2009 - BRC
DiamondCore Ltd. (the "Company") (TSX: BCD, JSE: BCD) announces that, further
to its December 3, 2008 press release, it will maintain its strategic
suspension of bulk sampling at its projects in South Africa`s Northern Cape
province in response to persistent depressed diamond prices and the deepening
economic downturn.
The Company envisages shutting down the Paardeberg operation for the
immediate future and down-sizing its Silverstreams operation from three
shifts to a one shift operation.
This requires that the Company enter into a consultation process with
affected employees and their representative unions, in terms of the
provisions of Section 189A of the South African Labour Relations Act.
The out-sourced contract for the bulk sampling at the Company`s De Kalk
project expired on December 31, 2008 and has not been renewed.
Dr. Mike de Wit, President of BRC DiamondCore, said: "Management deems these
steps as essential due to the ongoing need to conserve cash in light of
persistent adverse market conditions. We nevertheless still anticipate a
recovery in rough diamond prices in 2009. We retain the view that this,
together with a stronger US Dollar exchange rate against our operating
currency and lower energy costs, should position us more favourably in the
year ahead."
"By maintaining one shift at Silverstreams we retain flexibility and can
rapidly resume an increased level of production if justified by market
conditions, while maintaining the benefits of a downsized operation."
BRC DiamondCore Ltd. is an African-focused diamond explorer active in South
Africa and the Democratic Republic of the Congo (the "DRC"). Led by a
management team with extensive experience in diamond exploration and mine
development, the Company has a broad spectrum of projects ranging from
advanced stage trial mining operations through grass-roots exploration. The
Company`s projects comprise both prospective alluvial gravels and primary
kimberlite targets. The Company works in a systematic and responsible manner
to discover, assess and develop diamond resources for the benefit of its
shareholders and local stakeholders.
Pretoria
14 January 2009
Sponsor
River Group
For further information, please visit our website, www.brc-diamondcore.com,
or contact:
In Toronto:
Martin Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-
714-7938.
In Johannesburg:
James Duncan, Russell and Associates, +27 11 880-3924.
Forward-Looking Statements: This press release contains forward-looking
statements. All statements, other than statements of historical fact, that
address activities, events or developments that the Company believes, expects
or anticipates will or may occur in the future (including, without
limitation, statements relating to the resumption of bulk sampling
operations, future market conditions and the Company`s operating plans) are
forward-looking statements. These forward-looking statements reflect the
current expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a number
of risks and uncertainties that may cause the actual results of the Company
to differ materially from those discussed in the forward-looking statements,
and even if such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences to, or
effects on the Company. Factors that could cause actual results or events to
differ materially from current expectations include, among other things,
uncertainties relating to the availability and costs of financing needed in
the future, uncertainties relating to future diamond prices, the possibility
that future exploration results will not be consistent with the Company`s
expectations, changes in equity markets, foreign currency fluctuations,
inflation, political developments in South Africa or the DRC, changes to
regulations affecting the Company`s activities, delays in obtaining or
failure to obtain required project approvals, the uncertainties involved in
interpreting geological data and the other risks involved in the diamond
exploration business. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future
events or results or otherwise. Although the Company believes that the
assumptions inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance and
accordingly undue reliance should not be put on such statements due to the
inherent uncertainty therein.
Date: 14/01/2009 09:00:03 Produced by the JSE SENS Department.
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