Dominion Diamond Corporation Provides Update on Jay Project Feasibility Study
May 31 2016 - 4:00PM
Business Wire
Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the
“Company” or “Dominion”) is pleased to provide an update on the
progress of a feasibility study (“FS”) on the Jay kimberlite pipe
deposit located within the Buffer Zone Joint Venture property in
Canada’s Northwest Territories, in which the Company holds a
majority interest. The Company has determined that it can maintain
continuous production at Ekati without starting major construction
at Jay this year, and as a result will adjust the Jay Project
schedule to reflect this change.
The initial design basis for the Jay FS had assumed the
commencement of major construction this year. Changes to the Ekati
mine plan have, however, made feasible the delivery of a continuous
ore supply to the Ekati processing plant that allows further
optimization of the Jay Project. These changes include the
availability of Sable ore, deepening of the Koala underground, and
the continued successful trial of a lower throughput in the
processing plant as a tool to increase recovery. Furthermore,
delaying the use of the Misery Pit as a water management facility
would allow more time for mining below the currently planned open
pit.
The Company is completing the Jay FS based on a revised
development schedule. The new schedule assumes that the
construction of an all-season access road to the shoreline of Lac
du Sauvage would occur in calendar year 2017, followed by
construction of the water retention dike and associated
infrastructure in 2018 to 2020, with dike instrumentation,
dewatering and the start of pre-stripping in 2021, and mining and
processing of Jay kimberlite by late 2022.
Jay is the most significant undeveloped deposit at the Ekati
Diamond Mine due to its large size and high grade. Jay is located
beneath Lac du Sauvage, a moderate sized lake north of Lac de Gras,
and is approximately 1.2 km from the shoreline. The Jay pipe is
approximately 7 km to the northeast of the Misery Pit and related
infrastructure, and 30km to the southeast of the main Ekati mine
infrastructure.
Brendan Bell, Chief Executive Officer, stated: “We are very
pleased with the progress of the Jay Feasibility Study. The changes
we have made to the Ekati mine plan will allow us to maintain
continuous feed to the Ekati processing plant, even with an
extended timeline for commencing construction. We are also excited
about the possibility of additional mining below the currently
planned Misery open pit. The extra time will allow us to further
advance Jay project permitting and to make aggressive efforts to
reduce costs at the Ekati Mine. We are completing the Feasibility
Study and an updated mine plan based on this revised schedule and
look forward to releasing the results shortly.”
Forward-Looking InformationCertain information included
herein that is not current or historical factual information,
including information about estimated mine life and other
development plans regarding mining activities at the Ekati Diamond
Mine, constitute forward-looking information or statements within
the meaning of applicable securities laws. Forward-looking
information can generally be identified by the use of terms such as
“may”, “will”, “should”, “could”, “expect”, “plan”, “anticipate”,
“foresee”, “appears”, “believe”, “estimate”, “predict”, “continue”,
“modeled”, “hope”, “forecast” or other similar expressions
concerning matters that are not historical facts. Forward-looking
information is based on certain factors and assumptions including,
among other things, the current mine plan for the Ekati Diamond
Mine; mining, production, construction and exploration activities
at the Ekati Diamond Mine; the timely receipt of required
regulatory approvals; mining methods; currency exchange rates;
estimates related to the capital expenditures related to bring the
Jay pipe into production, required operating and capitals costs;
labour and fuel costs; world and US economic conditions; future
diamond prices; and the level of worldwide diamond production.
These assumptions 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 the Company currently expects. These factors
include, among other things, the uncertain nature of mining
activities, including risks associated with underground
construction and mining operations, risks associated with joint
venture operations, risks associated with the remote location of
and harsh climate at the Ekati Diamond Mine, risks resulting from
the Eurozone financial crisis, risks associated with regulatory
requirements, the risk of fluctuations in diamond prices and
changes in US and world economic conditions, the risk of
fluctuations in the Canadian/US dollar exchange rate and cash flow
and liquidity risks. Actual results may vary from the
forward-looking information. 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 Dominion Diamond CorporationDominion Diamond
Corporation is the world’s third largest producer of rough diamonds
by value. Both of its production assets are located in the low
political risk environment of the Northwest Territories in Canada
where the Company also has its head office. The Company is well
capitalized and has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of
the Diavik Diamond Mine. Between the two mining operations,
diamonds are currently produced from a number of separate
kimberlite pipes providing a diversity of diamond supply as well as
reduced operational risk. It supplies premium rough diamond
assortments to the global market through its sorting and selling
operations in Canada, Belgium and India.
For more information, please visit
www.ddcorp.ca
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Investor RelationsDominion Diamond
CorporationMs. Kelley Stamm, 416-205-4380Manager, Investor
Relationskstamm@ddcorp.caorMedia
RelationsMs. Laura Worsley-Brown, 867-669-6105Senior
Advisor, External Relationslaura.worsley-brown@ekati.ddcorp.ca