Dominion Updates Diavik, Ekati Mine Plans

Mar 17, 2014 4:47 AM By Deena Taylor

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RAPAPORT... The Diavik diamond mine in Canada will produce 6.1 million carats from 1.9 million tonnes of ore during 2014, Dominion Diamond Corp. reported following an update to its mine plan for the year.

Diavik, has three operating kimberlite ‎pipes, including the A-154 South pipe which will source 700,000 tonnes, the A-154 North pipe which will process 800,000 tonnes and the A-418 pipe which will produce approximately 400,000 tonnes. The company noted that mining will be conducted exclusively underground.

Based on historical recovery rates, Diavik will also process 600,000 diamonds from reprocessed plant rejects (RPR) and 200,000 carats from improved small diamond recovery.

The updated mine plan for Diavik anticipates that the company's operating costs will reach $155 million in fiscal 2015. Diavik's total cost of sales in fiscal 2015 are expected to amount to $280 million. Dominion owns a 40 percent stake in Diavik with the remaining 60 percent owned by Rio Tinto.

Dominon also owns an 80 percent stake in the Ekati mine. The company expects to produce 1 million carats from 2.7 million tonnes of ore during the year. Mining at Ekati in fiscal 2015 will focus on ore production from the Fox open pit, which is slated to process 1.7 million tonnes, with 1 million tonnes processed at Koala.

The company will source additional plant feed to keep the processing plant at capacity for the period from additional levels in the Koala North underground, the Misery South and Southwest diamond-bearing satellite bodies and the stockpile of coarse ore rejects. The Koala North underground, Misery South and Southwest satellite bodies as well as the coarse ore rejects are not included in the company's reserves and resource statement.

Dominion expects to spend $100 million to continue development at the Misery Pipe and $55 million to develop the Pigeon pipe. Overall operating costs for Ekati are expected to reach $195 million during the year.

Tags: Deena Taylor, Dominion Diamond