| Wed 16 Aug 2006, 8:00 | | Diamond Core - Update on projects and general prog |
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DMR
DMR
Diamond Core - Update on projects and general progress report
DIAMOND CORE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/013468/06)
Share code: DMR & ISIN Number: ZAE000076956
("Diamond Core" or "the company")
UPDATE ON PROJECTS AND GENERAL PROGRESS REPORT
Diamond Core Resources Limited ("the Company") is pleased to advise of the
progress made on the various projects within its portfolio since the
conclusion of a re-capitalisation programme which was completed 20 weeks
ago, as well as a general progress report regarding all matters within the
Company.
Commenting on the current status and general progress of the portfolio of
diamond projects being developed by the company, Theo Botoulas, CEO of the
Company stated that "the recapitalisation programme has enabled the Company
to resource and restructure itself to be able to deliver on its clear and
focussed strategy. The company continues to conduct ongoing exploration and
bulk sampling operations in areas of focus on the numerous diamond Projects
in the Northern Cape Province of South Africa. The exploration is a key
part of the ongoing process of systematically searching for economically
viable opportunities to bring into production"
For more information and a comprehensive progress report on Diamond Core
Resources Ltd, please visit our website on www.diamondcore.co.za.
Key achievements:
* Commencement of overburden stripping and dewatering operations at the
Paardeberg East PK1 pit;
* Kimberlite excavated from the upper extremity of the pit on the
Western Lobe stockpiled onto the sampling pads;
* Negotiation of EPCM and turnkey contracts for metallurgical sampling
plant construction at Paardeberg East and Silverstreams sites
respectively;
* Purchase of a 50 ton per hour Dense Media Separation (DMS) module for
the Paardeberg East site, with associated feed bins, crushers and
conveyors for a consideration of R 2 million;
* Review and planning for the Uitdraai and De Kalk alluvial exploration
sites;
* Ongoing exploration on targets in the Company portfolio;
* Continued implementation and integration of the Company into the
fabric of the Northern Cape via numerous BEE initiatives;
* Purchase of essential Komatsu and Volvo earthmoving equipment to meet
initial Company development requirements for R 26.6 million, the major
component of the fleet being Volvo equipment;
* Site and infrastructure preparation at Paardeberg East and
Silverstreams;
* Appointment of a Chief Financial Officer, Craig Campbell and Group
Geologist, Hano Hamman, in addition to requisite operational staff and
contractors;
* Creation of infrastructure and services in support of the operational
function and the creation of administrative functions ranging from
financial controls to IT.
Projects
The projects are detailed in order of operational priority, as:
* Paardeberg East kimberlite Project which is held in Diamond Core
Mining and Exploration (Pty) Limited, a 100 percent held subsidiary of
the Company.The objective is to commission this project by the last
quarter of this year as a regional bulk sampling, trial mining
facility, as a central point for the regional kimberlite exploration.
* Silverstreams alluvial Project held in Sandstraat Eksplorasie (Edms)
Bpk, a 50 percent held subsidiary. The objective is to commission this
project by the last quarter of this year, or early in the first
quarter of 2007, at the latest.
* Uitdraai alluvial Project which is owned via a 50 percent subsidiary
Prieska Diamond Mining (Pty) Limited. It is intended to commence with
the construction of this project once the two projects detailed above
have been commissioned, by the end of the first quarter or early in
the second quarter of 2007.
* De Kalk alluvial Project held in Samadi (Douglas) Exploration (Pty)
Limited, a 50 percent held subsidiary. It is intended to commence with
the construction of this project once the first two projects detailed
above have been commissioned, by the end of the first quarter or early
in the second quarter of 2007.
* The Skeyfontein kimberlite Project held by Dikeing Mining (Pty)
Limited, a 50 percent held subsidiary, on which some additional
exploration work will be done.
* The "blue sky" projects housed in both DCR Kimberlite and Alluvial
Projects (Pty) Limited, as well as Samadi Exploration (Pty) Limited,
will be implemented by way of a parallel strategy to the above
projects with a budgeted R 1,5 million for initial work. This includes
Silverstreams kimberlite exploration, the Koa Valley Project and
Kuiltjespan, on which SENS announcements have been made previously.
16th August 2006
Epsom Downs
Sandton
Sponsor
River Group
Date: 16/08/2006 08:00:04 AM Produced by the JSE SENS Department
