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Harry Winston Diamond Corporation reports Diavik Diamond Mine Second Quarter 2012 Update

July 17, 2012

TORONTO, July 17, 2012 /PRNewswire/ – Harry Winston Diamond Corporation
(TSX:HW, NYSE:HWD) (the “Company”) reports that in the second calendar
quarter of 2012, the Diavik Diamond Mine produced 1.79 million carats
from 0.5 million tonnes of ore processed.  Ore volumes processed and
diamonds recovered are consistent with the comparable quarter of the
prior year.

For the first half of the calendar year 2012, the Diavik Diamond Mine
produced 3.4 million carats from 1.1 million tonnes of ore processed
compared to production of 3.1 million carats from 1.0 million tonnes of
ore processed in the comparable period of the prior year.  Ore volumes
processed for the first half of the current year included production
from the A-154 South underground using the sub-level retreat mining
method that commenced in July 2011.  Diamonds recovered for the current
year are also higher than in the comparable period of the prior year
due partially to increased high-grade ore and lower mud-rich type B ore
mined from the A-418 kimberlite pipe in 2012.

Diavik’s full-year target production remains at 8.3 million carats.
Production in the second half of the year is forecast to be higher than
the first half of the year due to a ramp-up of carats recovered from
A-418 underground plus the processing of approximately 1.0 million
carats of reprocessed plant rejects (“RPR”).

The rough diamond market has experienced softened demand since the
beginning of the year. The Company held partial rough diamond sales in
May and June, and the July sale has just commenced and the Company
expects higher than normal rough diamond inventory at July 31, 2012.
Based on prices from the Company’s last complete rough diamond sale 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 in the table that follows. The Company
estimates that current market prices have declined by approximately 4%
from the beginning of the fiscal year and by approximately 8% since the
Company’s March/April 2012 sales.

     ________________________________________
    |Ore Type        | March and April 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     |
    |________________|_______________________|

Forward-Looking Information
Information included herein that is not current or historical factual
information, including information about mining activities at the
Diavik Diamond Mine and estimated production from the Diavik Diamond
Mine, may constitute forward-looking information or statements within
the meaning of applicable securities laws. Forward-looking information
is based on certain factors and assumptions regarding, among other
things, mining, production, construction and exploration activities at
the Diavik Diamond Mine, world and US economic conditions, future
diamond prices, and the level of worldwide diamond production. Actual
results may vary from the forward-looking information.  While the
Company considers these assumptions to be reasonable based on the
information currently available to it, they may prove to be incorrect.
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, including
risks associated with underground construction and mining operations,
fluctuations in diamond prices, and changes in US and world economic
conditions. 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 statements 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.

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


Source: PR Newswire