RAPAPORT... Dominion Diamond Corp. updated its mine plan for the Ekati diamond mine in Canada, which has a life expectancy through 2020. The company also confirmed that the Misery pipe, which was previously identified as an exploration target, has become an inferred resource validated by drilling, mining and processing activities.
Based on the updated mine plan, Ekati will produce a total of 19.18 million carats between 2015 and 2020 from four deposits in the mine's core zone. Processing from the Fox deposit will end in 2016 after producing 490,000 carats, while mining will begin at the Pigeon pipe in 2016 and at Misery in 2017. Misery is expected to produce 12.28 million carats of Ekati's expected total production by 2020. The mine will also produce an additional 850,000 carats between 2017 and 2019 from the Lynx deposit on Ekati's buffer zone.
The company forecast that rough diamonds recovered from Koala are expected to achieve an average price per carat between $395 and $440, while Fox rough are valued at an average $315 per carat and Pigeon rough is valued at $200 per carat. Diamonds from Lynx are valued at $235 per carat, while production from Misery's main section is valued at an average $105 per carat and Misery south is valued at $90 per carat. Coarse ore rejects are valued between $65 to $120 per carat, while small diamonds now recovered through plant improvements are valued between $70 to $100 per carat.
Between 2015 and 2020, Dominion expects to spend $164.4 million (CAD 174 million) to continue development at the Misery pipe, $67.2 million (CAD 72 million) to develop the Pigeon pipe and $32.7 million (CAD 35 million) to develop Lynx. Overall operating costs for Ekati are expected to reach $2.326 billion ( CAD 2.482 billion) during the five year period.
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