KimCor provides operations update

KimCor announces that a number of capital programmes have been completed and diamond mining and tailings recovery operations that have been idle for some time have been re-started.

Highlights

* Phase one modifications to the Company’s largest tailings reprocessing plant (’SMI4′), completed under budget, and the plant re-started;

* Modifications to increase the capacity and efficiency of the processing plant at the Newlands mine completed under budget and ahead of schedule;

* Nooitgedacht alluvial mine expansion completed with both production and diamond recovery exceeding expectations;

* The underground mine development programme at the Blaauwbosch mine is 3 months ahead of schedule. Hoisting of kimberlite ore is expected to commence in April;

* Anmic, the Group’s cutting and polishing business is achieving a value-added margin of 10 per cent on all processed rough;

* Exploration shafts sunk on the 2.33 hectare Itanana pipe in Tanzania have intersected kimberlite at shallow depths. The Company considers this target to be highly prospective and intends to expand this work with a view to obtaining bulk samples;

* Supermix, the Group’s industrial division producing bricks and concrete has been operating on a cash positive basis for the past 3 months and the trend is projected to continue.

Martyn Churchouse, CEO of KimCor, said, we are delighted with the progress made across all our operations. The Company is continuing to ramp up production with a focus on those mines expected to make the largest contribution to diamond production. Recoverable diamond grades are in line with expectations and the
average sales prices achieved to date have generally achieved or exceeded budget.

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