Photo by: Diamcor Mining
TORONTO (miningweekly.com) – South Africa-focused diamond extractor Diamcor Mining on Thursday reported that the South African Department of Mineral Resources had granted a mining right for the Krone-Endora at Venetia project in South Africa’s Limpopo province, located directly next to De Beers’ Venetia diamond mine – the country’s largest precious gems mine.
The right granted the Canadian company a 30-year term to exclusively mine and recover diamonds over a 657.71 ha area of the project's total area of 5 888 ha. Diamcor stated that it had also submitted an application for a mining right over the remaining areas of the project.
"With the mining right in place, we look forward to advancing the project to the next stages of development and, in so doing, creating value for all stakeholders while creating new direct and indirect jobs that contribute to the socioeconomic development of Limpopo and South Africa in general,” CEO Dean Taylor said.
Diamcor was selected by De Beers to acquire the project after an extensive competitive proposal and review process that started in 2008. The company closed the project acquisition in February 2011 through its South African subsidiary, DMI Minerals South Africa, which is 70% owned by the company and 30% owned by a black economic-empowerment partner, Nozala Investments – a broad-based 100% women-owned business entity with an estimated 500 000 rural women shareholders.
Shortly after finalising the acquisition, Diamcor entered into a long-term strategic alliance, including supply and financing components, with New York-based luxury jewellery and speciality retailer Tiffany & Co.
To date, Diamcor had financed, developed and completed designing, building and installing extensive infrastructure at the Krone-Endora at Venetia project
The near surface nature of the deposit, which is believed to be the result of the direct-shift and erosion of material from the higher grounds of the next door Venetia kimberlite areas, provided the potential for a low-cost mining operation with near-term diamond output from a known high-quality diamond source, at a critical time in the diamond sector.
The Kelowna, British Columbia-based firm said it was working on updating its current 2009 Canadian National Instrument 43-101-compliant technical report in coming months.
Ongoing on-site testing and commissioning exercises had provided the company with a steady flow of precommercial revenue, starting with the first tender in November 2012. Subsequently, it had recovered several gem-quality ‘special’ stones.