TORONTO, CANADA, Oct. 23, 2013 /PRNewswire/ - Dominion Diamond Corporation
(TSX:DDC, NYSE:DDC) (the "Company") announced today that it has filed
an application with the Wek'éezhii Land and Water Board ("WLWB")
requesting a new land use permit and a Class A Water Licence for
extension of the Ekati Diamond Mine to include the Jay and Cardinal
kimberlite pipes (the "Jay-Cardinal Project").
Robert Gannicott, Chairman and Chief Executive Officer stated: "The
scale and robust nature of the Jay-Cardinal Project has the potential
to secure the future not just of the Ekati Diamond Mine, but of the
Northwest Territories diamond industry."
The application filed by the Company, which is a Detailed Project Report
for the Jay-Cardinal Project, represents the first stage in the
regulatory approval process. Detailed study work commenced immediately
following the acquisition of the Ekati Diamond Mine by the Company on
10th April 2013.
The Jay-Cardinal Project involves the development of the largest
diamondiferous resource in North America. The development and mining of
these kimberlites is the cornerstone of Dominion Diamond Corporation's
strategy for building a long-term, sustainable Canadian diamonds
business. At the Jay pipe, drilling to date has established 78 million
carats of indicated resource and 13 million carats of inferred
resource. Further work at Jay during the coming winter is designed to
enable consideration of an open pit reserve to support development of
the project. In itself, the Jay-Cardinal Project has the potential to
extend the operating life of the Ekati Diamond Mine in the order of 10
to 20 years beyond the currently scheduled closure in 2019.
The Jay-Cardinal Project schedule anticipates Environmental Assessment
approval before the end of 2015. Construction would then commence,
leading to the planned release of diamond-bearing kimberlite to the
process plant by 2019.
The Jay and Cardinal kimberlite pipes are located in Lac du Sauvage in
the southeastern portion of the Ekati mine property, about 25 km from
the main facilities and approximately 7 km to the northeast of the
Company's Misery mining area. The two pipes are located in the Buffer
Zone Joint Venture, in which the Company has a 58.8% control interest.
Mining of the Jay and Cardinal kimberlite pipes will require two
freshwater diversions around an area within the Lac du Sauvage. The
water level would be drawn down to a level that exposes the two
kimberlite pipes for open pit mining; underground mining is also
planned. Diamond-bearing kimberlite would be trucked to the existing
Ekati Diamond Mine process plant using the existing Misery haul road.
Processed kimberlite tailings would be deposited into mined-out open
pits at the Ekati site such that environmental disturbances related to
expanding or constructing new deposition areas is avoided.
An area at the outlet of Lac du Sauvage that has been traditionally used
by local Aboriginal groups will not be disturbed by the Jay-Cardinal
Project. The existing Ekati Diamond Mine environmental monitoring,
management and mitigation programs can all be expanded to incorporate
the activities proposed for the Jay-Cardinal Project.
The current 43-101 compliant resource estimate for the Jay kimberlite
pipe includes 36.2 million tonnes of indicated resource at 2.2 carats
per tonne and 9.5 million tonnes of inferred resources at 1.4 carats
per tonne. The pipe is believed to continue at depth. The Company
estimates the rough diamond price for the Jay diamonds to be
approximately US$74 per carat as at December 31, 2012, assuming the
current process plant recovery parameters that use a 1.2 mm slot screen
cutoff resulting in 85% of the diamonds being recovered (for more
information please see Company's Technical Report filed on SEDAR and
posted on the Company's website).
Follow-up delineation drilling programs are planned at both Jay and
Cardinal kimberlite pipes for winter 2014. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
The Company has already started the initial work on a pre-feasibility
report for the development which it aims to complete in calendar 2014.
The Detailed Project Report is available from the WLWB at http://wlwb.ca/ and on the Company's website.
The scientific and technical information contained in this press release
has been prepared under the supervision of Mats Heimersson, P. Eng., an
employee of the Company and a Qualified Person within the meaning of
National Instrument 43-101.
About Dominion Diamond Corporation
Dominion Diamond Corporation is a Canadian diamond mining company with
ownership interests in two of the world's most valuable diamond mines.
Both mines are located in the low political risk environment of the
Northwest Territories of Canada. The Company is the fourth largest
diamond producer by value globally and the largest diamond mining
company by market capitalization, listed on the Toronto and New York
The Company operates the Ekati Diamond Mine through its 80% ownership as
well as a 58.8% ownership in the surrounding areas containing
prospective resources. It also sells diamonds from its 40% ownership
in the Diavik Diamond Mine.
For more information, please visit www.ddcorp.ca
This press release includes forward-looking information about the
Jay-Cardinal Project, which is based on certain factors and
assumptions. While the Company considers these assumptions to be
reasonable based on the information currently available to it, they may
prove to be incorrect. Actual results may vary from the forward-looking
information. Forward-looking information is subject to certain factors,
including risks and uncertainties, which could cause actual results to
differ materially from what we currently expect. These factors include,
among other things, the uncertain nature of mining activities and risks
associated with the regulatory approval process. Readers are cautioned
not to place undue importance on forward-looking information, which
speaks only as of the date of this disclosure, and should not rely upon
this information as of any other date. While the Company may elect to,
it is under no obligation and does not undertake to, update or revise
any forward-looking information, whether as a result of new
information, further events or otherwise at any particular time, except
as required by law. Additional information concerning factors that may
cause actual results to materially differ from those in such
forward-looking information is contained in the Company's filings with
Canadian and United States securities regulatory authorities and can be
found at www.sedar.com and www.sec.gov, respectively.
SOURCE Dominion Diamond Corporation