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RAPAPORT... Dominion Diamond Corporation, formerly Harry Winston Diamond Corporation, reported that diamond production at the Diavik diamond mine in Canada rose 21 percent year on year to 1.9 million carats during the first quarter, which ended on March 31.
The increase was primarily due to improved grades in each of the kimberlite pipes as the average measurement rose to 3.87 carats per tonne, compared with 3.03 carats per tonne of ore one year ago.
A new mine plan and budget for calendar 2013 has been approved by Dominion's partner, Rio Tinto, and they anticipate the Diavik diamond mine will produce approximately 6 million carats, up almost 40 percent from the previous year. Mining activities will be exclusively underground.
The development of the mine's A-21 pipe, the last of Diavik's kimberlite pipes in the original mine plan, has been deferred due to the decreased urgency of development following the identification of extensions to the existing pipes, according to operator Dominion. The company expects the life of the existing developed pipes will be extended, deferring the need for production from A-21 to keep the processing plant full. The A-21 pre-feasibility study currently being undertaken assumes that the A-21 pipe will be mined with the open-pit methods used for the other pipes. A dike would be constructed similar to the two other pits but smaller in size.
Based on the company's sales during the first quarter, along with the current diamond recovery profile at Diavik's processing plant, Dominion Diamond modeled approximate rough diamond prices with A-154 south at $140 per carat, A-154 north at $180 per carat and A-418 at $100 per carat.
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