Dynacor’s second tender to be over 6K cts?
Diamcor Mining announces 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. The Company has delivered an additional 6,369.00 carats which it expects to sell at a second tender in Antwerp in November. A final tender of the Company’s third fiscal quarter is tentatively planned for 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.
The continued increase in the total rough diamonds tendered, delivered and sold is further confirmation of the positive impact of the Company’s new operational management team and the exercises being performed to remedy past operating deficiencies and implement enhanced long term operating practices and procedures, at the Company’s Krone-Endora at Venetia Project.
As part of the evaluation and analysis underway, the processing of historical tailings and previously stockpiled material is expected to continue for the coming weeks. The exercises underway are also expected to provide the short-term benefit of reducing operating costs associated with heavy equipment and fuel, and will support the planning underway for the deployment of new larger equipment in the near-term to support the Company’s planned increase in processing volumes at the Project with the resumption of normalized quarry mining operations.
The 4,033.01 carats of rough diamonds sold in the first tender of the current quarter generated total gross proceeds of USD $424,072.44, resulting in an average price of USD $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. Price weaknesses in certain categories of the rough diamond market also contributed, to a lesser extent, to the lower dollar per carat average achieved.
However, the Company remains confident the average price per carat will improve to historical levels as the processing of mined material begins through the refined processing facilities. Despite the percentage of smaller diamonds recovered from the current exercises, various larger gem quality rough diamonds in the +2.0 – 10.0 carat range also continue to be 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.
“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”, noted Diamcor CEO Mr. Dean Taylor.
“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”, added Mr. Taylor.
