https://www.engineeringnews.co.za

Dominion Diamond reports ‘exceptional’ Q3 FY2015 production results for Ekati, Diavik

21st November 2014

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – TSX-listed Dominion Diamond Corporation reported on Thursday that its Ekati and Diavik diamond mines performed exceptionally well in the third fiscal quarter of 2015, August through October, with rough diamond production, sales and pricing all exceeding plan. 

Consistent with the two previous quarters, diamond production at the Ekati diamond mine was driven by both higher-than-expected grades and operational improvements to the processing plant.

For the three months ended October 31, about 1.1-million tonnes of ore were processed at Ekati in total, producing 975 000 ct, grading 0.85 ct/t on average. This was an improvement compared with the previous year’s comparable quarter in which about 1.1-million tonnes were processed, generating 609 000 ct, grading 0.54 ct/t on average.

For the nine months ended October 31, the mine processed 3.1-million tonnes of ore, which produced about 2.3-million carats, grading 0.74 ct/t on average.  From April 10, 2013, to October 31, 2013, Ekati processed 2.4-million tonnes of ore, resulting in 1.1-million carats, which graded, on average, at 0.48 ct/t.

Dominion pointed out that waste stripping at the Misery pipe progressed according to plan as additional resources were allocated. Concurrently, stripping and mining of the COR pipe was initiated ahead of the initial plan to provide additional flexibility for blending at the process plant.  At the Pigeon pipe, this quarter saw the completion of the ring road, the establishment of the waste stockpile area and the beginning of overburden and waste stripping.

Underground production at both the Koala and Koala North pipes was slightly ahead of plan for the quarter and development activities at Koala North were completed in August according to plan.

Dominion estimated that process plant improvements implemented over the last 13 months had increased the recovered grade at Ekati by about 15% during the nine-month period ending October 31.

“The resulting additional diamonds are not currently included in the reserves and the mine plan. During the quarter, physical modifications to the plant were substantially completed with commissioning expected to take place before the fiscal year-end. Once the process improvements have been completed, the company intends to incorporate these higher recovery rates into an updated reserve statement,” Dominion explained.

Meanwhile, the Diavik diamond mine continued to deliver a good performance for the third consecutive quarter of fiscal 2015, said the company.

Dominion reported, for the three months ended October 31, production based on its 40% shareholding of 207 000 tonnes of ore, producing 589 000 ct, grading 2.82 ct/t on average. This was lower than the production reported for the 2013 comparable period, when 211 000 tonnes of ore were processed, generating 727 000 ct, which graded at 3.29 ct/t on average.

For the nine months ended October 31, Diavik processed 691 000 tonnes, producing about 2.1-million carats, grading, on average, 3.11 ct/t. This was an improvement on the production results for the nine months ended October 31, 2013, during which Diavik processed 628 000 tonnes, which produced about two-million carats, grading 3.1 ct/t on average.

“Ore mined at the Diavik diamond mine was 5% ahead of plan for the three months ended October 31, and 12% ahead of plan for the fiscal year to date. This performance results from higher production from all three kimberlite pipes throughout the year owing to favourable ground conditions and improved availability of equipment,” Dominion highlighted.

Ore processing at the mine was 5% ahead of plan for the three months ended October 31 and 17% ahead of plan for the fiscal year to date. This was predominately a result of greater ore availability owing to higher mining rates and improved equipment availability, equipment efficiencies and the utilisation of the processing plant. 

Carat production was 19% lower compared with the same fiscal quarter of the prior year, primarily owing to the processing of a lower proportion of the higher grade A-154 South ore.

DIAMOND SALES
Dominion recorded total third-quarter sales of $222.3-million compared with $148.1-million in the third quarter of fiscal 2014.

For the three months ended October 31, Dominion earned $141.9-million and $80.4-million from the sale of 458 000 ct of Ekati and 696 000 ct of Diavik rough diamonds respectively.

“Excluded from the Ekati sales recorded in the third quarter were carats produced and sold from the processing of material from the Misery Satellite pipes. During the third quarter, the company sold an estimated 0.17-million carats of production from the Misery Satellite pipes for estimated proceeds of $13.6-million for an average of $79/ct, which includes the recovery of small diamonds,” noted Dominion.

For the nine months ended October 31, the company sold an estimated 400 000 ct of production from its Misery Satellite pipes for estimated proceeds of $31-million for an average of $78/ct, which included the incremental diamond recovery from processing improvements.

The Misery Satellite pipes started commercial production on September 1, 2014.

INVENTORIES
Two rough diamond sales, which took place in August and September, were held during the quarter under review, ahead of the Diwali holiday in India, which resulted in an increase in the diamonds held in inventory at the end of the period, Dominion added, noting plans to hold three rough diamond sales in the fourth fiscal quarter of 2015.

As at October 31, the company had rough diamond inventory with an estimated market value of about $350-million. 

The inventory amount was comprised of about $185-million of rough diamonds available for sale at market value, which included an estimated $60-million of rough diamonds held back from sale in the third quarter and an additional $15-million of rough diamonds, which are primarily samples used in the sorting process. The balance of about $165-million of rough diamonds represented work in progress, commented Dominion.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.131 0.185s - 156pq - 2rq
Subscribe Now