Quantcast
Last updated on April 24, 2014 at 5:30 EDT

Dominion Diamond Corporation Issues Updated Calendar 2013 Production, and Fiscal 2014 Sales, Guidance

May 10, 2013

TORONTO, May 10, 2013 /PRNewswire/ – Dominion Diamond Corporation (TSX:DDC,
NYSE:DDC) (the “Company”) announced today that the revised forecast for
calendar 2013 for the Diavik Diamond Mine currently foresees production
(on a 100% basis) of approximately 6.6 million carats from the mining
of approximately 1.6 million tonnes of ore and the processing of
approximately 2.0 million tonnes of material from both mining and
stockpiles. The approximately 11% increase in carats produced for
calendar 2013, as compared to the previously disclosed plan, relates
primarily to the processing of more stockpiled ore during the calendar
year.  This plan is subject to further revision at the end of the
second quarter.

A new mine plan and budget for the Ekati Diamond Mine for the next
operating period is currently under review. This plan foresees
production (on a 100% basis) for the period from April 10, 2013 (the
date of acquisition by the Company of its interest in the Ekati Diamond
Mine) to the calendar 2013 year-end of approximately 1.0 million carats
from the mining of approximately 3.5 million tonnes from mineral
reserve, and the processing of approximately 3.9 million tonnes, with
the additional material being made up of diamond bearing kimberlite
from a satellite body in the Misery open pit that is excavated as part
of the waste stripping as the pit profile is advanced.

Rough diamond sales for fiscal 2014, based on current rough diamond
prices, are expected to be a total of approximately $730 million with
$365 million coming from each of the 40% share of Diavik and the 80%
share of Ekati.  Included in the fiscal 2014 sales for the Diavik
Diamond Mine is approximately $25 million from sales of goods available
for sale at January 31, 2013 and for the Ekati Diamond Mine is
approximately $70 million from opening acquisition inventory that is
expected to be sold towards the end of fiscal 2014.

The model that had been included with the reserves and resource
statement that was issued on April 24, 2013 assumed, as revenue for the
period from January 1, 2013 to June 30, 2013, of approximately $135
million from the sale of all inventory on hand during that period. This
model was prepared to justify the classification of reserves at the
Ekati Diamond Mine by demonstrating economic value under the reporting
rules of National Instrument 43-101 and does not constitute the
operating plan for the project.  This inventory is not expected to be
sold prior to June 30, 2013.  The Company’s technical report in respect
of the Ekati property is expected to be filed during the current month.

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
Stock Exchanges.

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

Forward-Looking Information
Information included herein that is not current or historical factual
information, including information about mining activities and
estimated rough diamond revenue, 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 each of the Diavik and Ekati
Diamond Mines, mining methods, currency exchange rates, required
operating and capital costs, labour and fuel costs, 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, risks associated with the location
of and harsh climate at the Diavik and Ekati Diamond Mine sites,
fluctuations in diamond prices and changes in US and world economic
conditions, risks relating to the price of fuel and the availability
and cost of labour for the Diavik and Ekati Diamond Mines, the risk of
fluctuations in the Canadian/US dollar exchange rate, as well as risks
associated with regulatory requirements. 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.

SOURCE Dominion Diamond Corporation


Source: PR Newswire