Harry Winston Diamond Corporation reports Diavik Diamond Mine First Quarter 2012 Update
TORONTO, April 17, 2012 /PRNewswire/ – Harry Winston Diamond Corporation
(TSX:HW, NYSE:HWD) (the “Company”) reports that in the first calendar
quarter of 2012, Diavik produced 1.60 million carats from 0.5 million
tonnes of ore processed. Diamonds recovered in the 2012 first quarter
was higher by approximately 19% compared to the same quarter of the
prior year due to improved grades. In the first quarter of 2011, a
higher proportion of mud-rich A-418 type B ore was processed which
reduced the overall grade. Ore production for the first calendar
quarter consisted of 0.1 million carats produced from 0.04 million
tonnes of ore from the A-154 South kimberlite pipe, 0.2 million carats
produced from 0.10 million tonnes of ore from the A-154 North
kimberlite pipe and 1.2 million carats produced from 0.39 million
tonnes of ore from the A-418 kimberlite pipe. Also included in
production for the calendar quarter was an estimated 0.08 million
carats from reprocessed plant rejects (“RPR”). Average grade increased
to 3.0 carats per tonne in the first calendar quarter from 2.8 carats
per tonne in the comparable quarter of the prior year. The increase in
average grade was primarily the result of the production of RPR in the
current calendar quarter.
A mine plan and budget for calendar 2012 has been approved by Rio Tinto
plc, the operator of the Diavik Diamond Mine, and the Company. The
plan for calendar 2012 foresees Diavik Diamond Mine production of
approximately 8.3 million carats (100% basis) from the mining of 2.0
million tonnes of ore and processing of 2.2 million tonnes of ore. Open
pit mining of approximately 1.0 million tonnes is expected to be
exclusively from A-418. Underground mining of approximately 1.0 million
tonnes is expected to be sourced equally from the A-154 South and A-154
North kimberlite pipes. Included in the estimated production for
calendar 2012 is approximately 1.0 million carats from RPR and 0.1
million carats from the implementation of an improved recovery process
for small diamonds. These RPR and small diamond recoveries are not
included in the Company’s reserves and resource statement and are
therefore incremental to production.
Based on the Company’s sales during the first quarter and the current
diamond recovery profile of the Diavik processing plant, the Company
has modeled the approximate rough diamond price per carat for each of
the Diavik ore types as follows:
________________________________________
|Ore Type |February and March 2012|
| |Average Price per Carat|
| | (in US dollars) |
|________________|_______________________|
| A-154 South | $160 |
|________________|_______________________|
| A-154 North | $205 |
|________________|_______________________|
|A-418 A Type Ore| $145 |
|________________|_______________________|
|A-418 B Type Ore| $100 |
|________________|_______________________|
| RPR | $55 |
|________________|_______________________|
About Harry Winston Diamond Corporation
Harry Winston Diamond Corporation is a diamond enterprise with premium assets in the mining and
retail segments of the diamond industry. Harry Winston supplies rough
diamonds to the global market from its 40 percent ownership interest in
the Diavik Diamond Mine. The Company’s luxury brand segment is a
premier diamond jeweler and luxury timepiece retailer with salons in
key locations, including New York, Paris, London, Beijing, Shanghai,
Hong Kong, Singapore, Tokyo and Beverly Hills.
The Company focuses on the two most profitable segments of the diamond
industry, mining and retailing, in which its expertise creates
shareholder value. This unique business model provides key competitive
advantages; rough diamond sales and polished diamond purchases provide
market intelligence that enhances the Company’s overall performance.
For more information, please visit www.harrywinston.com. or for investor information, visit http://investor.harrywinston.com.
SOURCE Harry Winston Diamond Corporation
