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Dominion Mulls Ekati Underground Project

Sep 10, 2017 8:49 AM   By Rapaport News
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Dominion Diamond Corporation is considering a $628 million investment to go underground at the Fox pit and extend its Ekati mine operation by seven years.

The current mine plan at Ekati accounts for operations until 2035, with production coming from six open pits and two underground operations. Should Dominion decide to go ahead with the Fox Deep project, it will prolong the mine’s life to 2042, yielding an additional 11 million carats.

Dominion stopped operating the Fox open pit in 2014 after a decade of mining that produced more than 8.7 million carats, it explained in a statement on Thursday. A preliminary economic assessment conducted by SRK Consulting (Canada) gave the project a net present value of $187 million.

The Canadian miner is currently conducting a pre-feasibility study for Fox Deep, which will provide more details on the viability of the project. The study is expected to be complete by the end of the year.

Separately, Dominion said two of its major investors, Institutional Shareholder Services and Glass, Lewis & Co., had recommended other shareholders back the prospective $1.2 billion takeover by the Washington Companies. A meeting to approve the deal is scheduled for September 19.
Tags: Canada, diamond, diamonds, Dominion Diamond Corp, ekati, Fox Deep, Rapaport News, Washington Companies
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