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Dominion Diamond reports ‘ahead of target’ full-year results

Dominion Diamond reports ‘ahead of target’ full-year results

Photo by Duane Daws

16th January 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian miner Dominion Diamond late on Wednesday reported strong diamond production from both the Diavik and Ekati mines, in Canada’s Northwest Territories, saying that Diavik performed ahead of target in 2013.

The miner also revealed new mine plans for both operations for 2014.

Toronto-based Dominion said the Diavik mine plan for 2014 was currently under review by global mining major Rio Tinto, which holds a 60% interest in the operation. It expected output to total about 6.1-million carats from mining and processing about 1.9-million tons of ore. The company added that mining activities would be exclusively underground.

During the fourth quarter ended December 31, Diavik produced 2.1-million carats from 540 000 t of ore processed, compared with 1.9-million carats from 470 000 t of ore processed in the comparable quarter of 2012.

The 16% rise in processing volumes was a result of improvements in the mining rates as the underground ramp-up progressed throughout the year to full production from all three pipes.

For the full-year 2013, Diavik output was flat, yet above target at 7.2-million carats from 2.1-million tons of ore processed, compared with output of 7.2-million carats from 2.1-million tons of ore processed in 2012.

Dominion revealed that, in the 2015 financial year, Ekati expected to process about 2.7-million tons from the mineral reserve and produce about one-million carats. The miner said it expected to process about 1.7-million tons from the Fox pipe (including stockpiles) and about one-million tons split between Koala Phase 5 and Phases 6 and 7.

During the fourth quarter, Ekati produced 400 000 ct from processing 900 000 t of ore from the reserves. Activities through the three months focused on ore output from the Fox openpit, and Koala and Koala North underground. The company also recovered 100 000 ct from the processing of 100 000 t of coarse ore rejects and diamond-bearing kimberlite excavated from satellite bodies in the Misery openpit.

During the period from April 10, to December 31, Dominion mined a total of 4.2-million tons from the Ekati mine from reserves, with about 3.5-million tons from the Fox pipe, about 200 000 t from Koala Phase 5, about 200 000 t from Koala Phase 6 and 7, and slightly less than 300 000 t from Koala North. 

During this period, output totalled 1.1-million carats from 2.8-million tons of ore from the reserves. The mine also produced 330 000 ct from processing 300 000 t of coarse ore rejects and diamond-bearing kimberlite excavated from Misery South and Southwest.

Dominion also said it is working on a prefeasibility study for the Jay Cardinal project, which it aimed to complete this year. The diamond and sonic core drilling programme, which would be carried out at the Jay and Cardinal pipes and along alignments for the dikes planned for the proposed development, was expected to start in early to mid-February.

Edited by Creamer Media Reporter

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