Quantcast
Last updated on April 23, 2014 at 16:13 EDT

Dominion Diamond Corporation reports Diavik and Ekati Diamond Mine Second Quarter Production

July 16, 2013

TORONTO, July 16, 2013 /PRNewswire/ – Dominion Diamond Corporation (TSX:DDC,
NYSE:DDC) (the “Company”) reports Diavik and Ekati Diamond Mine second
calendar quarter production results:

Diavik Diamond Mine

During the second calendar quarter of 2013, the Diavik Diamond Mine
produced 1.6 million carats from 0.5 million tonnes of ore processed,
as compared to 1.8 million carats from 0.5 million tonnes of ore
processed in the comparable quarter of the prior year.

For the first half of the calendar year 2013, the Diavik Diamond
Mine produced 3.5 million carats from 1.0 million tonnes of ore
processed compared to production of 3.4 million carats from 1.1 million
tonnes of ore processed in the comparable period of the prior year. The
3% increase in carats recovered in the current year was primarily due
to an increase in grade in each of the kimberlite pipes. The average
grade of ore processed including reprocessed plant rejects (“RPR”) was
3.41 carats/tonne compared with 3.18 carats/tonne in the comparable
period of the prior year.

Diavik diamond Mine Production 40% basis


    For the three months ended June 30,   For the three months ended June
    2013                                                         30, 2012

             Ore                             Ore
    Pipe  Processed Carats     Grade      Processed Carats     Grade
            (000s   (000s) (carats/tonne)   (000s   (000s) (carats/tonne)
           tonnes)                         tonnes)

    A-154
    South        61    229           3.79        13     54           4.28

    A-154
    North        69    130           1.89        28     58           2.04

    A-418        80    232           2.89       174    604           3.47

    RPR           1     33              -         -      -              -

    Total       211    624        2.82(a)       215    716        3.33(a)

((a) )Grade has been adjusted to exclude RPR


    For the six months ended June 30,      For the six months ended June
    2013                                             30, 2012

             Ore                             Ore
    Pipe  Processed Carats     Grade      Processed Carats     Grade
            (000s   (000s) (carats/tonne)   (000s   (000s) (carats/tonne)
           tonnes)                         tonnes)

    A-154                            4.36                            3.70
    South     120     524                        28   104

    A-154                            2.15                            1.85
    North     138     296                        69   128

    A-418     151     506            3.35       329 1,095            3.33

    RPR         3      76               -         1    32               -

    Total     412   1,402         3.24(a)       427 1,359         3.12(a)

((a)) Grade has been adjusted to exclude RPR

An updated mine plan and budget for calendar 2013 has been approved by
Rio Tinto plc (“Rio Tinto”) and the Company. The updated plan for
calendar 2013, which originally included Diavik Diamond Mine production
of approximately 6 million carats, currently foresees production of
approximately 7.3 million carats from the mining of approximately 1.8
million tonnes of ore and the processing of approximately 2.2 million
tonnes of material from both mining and stockpiles. The approximately
22% increase in carats in expected production for calendar 2013, as
compared to the original plan, relates to both the processing of more
stockpiled ore and an increase in underground mining velocity during
the calendar year.  Mining activities will be exclusively underground
with approximately 0.7 million tonnes expected to be sourced from A-154
North, approximately 0.5 million tonnes from A-154 South and
approximately 0.6 million tonnes from A-418 kimberlite pipes. Included
in the estimated production for calendar 2013 is approximately 0.4
million carats from RPR and 0.1 million carats from the 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.

Ekati Diamond Mine

During the period from April 10, 2013 (the date of acquisition by the
Company of its interest in the Ekati Diamond Mine) to June 30, 2013,
the Ekati Diamond Mine produced 0.4 million carats from 1.0 million
tonnes of ore processed. The average grade of ore processed was 0.41
carats/tonne.

Ekati diamond Mine Production 80% Basis


    For the period from April 10, 2013 (date of acquisition) to June 30,
    2013

    Pipe          Ore Processed Carats                             Grade
                  (000s tonnes) (000s)                    (carats/tonne)

    Koala Phase 5            50     19                              0.38

    Koala Phase 6            26     34                              1.30

    Koala North              75     59                              0.78

    Fox                     613    199                              0.33

    Total                   764    311                              0.41

The mine plan and budget for the Ekati Diamond Mine 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.

Pricing

Based on the Company’s sales during the first quarter and the current
diamond recovery profile of the Diavik and Ekati processing plants, the
Company has modeled the approximate rough diamond price per carat for each of the ore types as follows:


    Diavik Ore Type   June 2013         Ekati Ore Type   June 2013
                      Average Price                      Average Price per
                      per Carat                          Carat
                      (in US dollars)                    (in US dollars)

    A-154 South       $140              Koala Phase 5    $360

    A-154 North       $180              Koala Phase 6    $415

    A-418             $100              Koala North      $435

    RPR               $50               Fox              $315

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 production from the Company’s mining properties, 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, 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