KimCor Diamonds plc - Operations Update

RNS Number:9268E
KimCor Diamonds plc
02 October 2007


                              KIMCOR DIAMONDS PLC
                          ('KimCor' or the 'Company')

                    Mining recommences on Nooitgedacht Mine

KimCor (AIM: KIM), the mid-tier diamond producer following the recent
acquisition of Dwyka Diamonds Holdings ('DDH'), is pleased to announce the
start-up of mining and processing operations on the Company's Nooitgedacht
alluvial mine. The newly acquired mine is located on the outskirts of Kimberley,
South Africa.

Highlights

   *Commencement of mining and processing at Nooitgedacht alluvial mine
   *Indicated and inferred resource of 16 million tonnes at average
recoverable grade of 1.0 carats per hundred tonnes
   *Historical sale values of between US$500 and US$650 per carat


The mine has been on care and maintenance pending the completion of the recent
property acquisitions.

The Nooitgedacht mine has an indicated and inferred resource of 16 million
tonnes of alluvial gravel, with an average recoverable grade of 1.0 carat per
hundred tonnes ('cpht'). Diamonds recovered from Nooitgedacht are traditionally
of high quality, which is reflected in the average historical sales value of
between US$500 and US$650 per carat.

The mine has a long history of diamond production going back to 1908. Between
1908 and 2003, the mine produced at least 15 diamonds larger than 100 carats in
weight, including the largest alluvial diamond ever found in South Africa, the
Venter diamond, a yellow stone weighing 511.25 carats. Other large stones
recovered included a 325ct and a 315ct diamond. Prior to placing the mine on
care and maintenance, DDH recovered stones of 57 carats and 54 carats, that sold
for US$483,000 and US$360,000 respectively.

A diamond recovery plant is already located on site and is fully operational,
with a capacity to process 14,000 tonnes of alluvial concentrate per month
('tpm').

Mining will initially focus on known extensions to alluvial channels that have
traditionally returned grades of 1.0cpht or more. Test work and bulk sampling of
previously worked channels has returned recoverable diamond grades of up to
0.8cpht and consideration is being given to a second mobile processing plant to
increase production.

Martyn Churchouse, Chief Executive, commented:
'The Nooitgedacht resource is substantial and the current mining and processing
programme gives us an opportunity to re-establish operations on this site and to
provide the information needed to plan and implement future major expansion of
the operation.

'The 14,000tpm mining rate allows mine management to optimise the processing
plant and familiarise themselves with the local geology. Once we are comfortable
with the operation and have established the scope for expansion, we will
consider the benefits to the Group of increased production of high value stones
and recommend an upgrade of the facility if appropriate'.

                                   ---ENDS---

Enquiries:

KimCor Diamonds plc Tel: 020 7290 1400
Martyn Churchouse

Strand Partners Limited Tel: 020 7409 3494
Simon Raggett
Warren Pearce

Bishopsgate Communications Ltd Tel: 020 7562 3350
Maxine Barnes
Nick Rome


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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