Dominion Diamond Corporation Restarts Ekati Process Plant Ahead of Schedule and Announces Sale of an Exceptional Diamond
September 22 2016 - 4:00PM
Business Wire
Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the
“Company” or “Dominion”) is pleased to announce the restart of the
Ekati process plant and the sale of an exceptional diamond
recovered at the Ekati Diamond mine earlier this year.
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Dominion Diamond Corporation – 186 carat
diamond from the Ekati Diamond Mine. (Photo: Business Wire)
Process Plant Restart
The Ekati process plant resumed operations at full capacity on
September 21. Plant operations had been suspended since a fire that
occurred at the Ekati process plant on June 23, 2016. During this
time, the Company implemented an active management strategy
designed to mitigate the impact of the fire on production and cash
flow for the current fiscal year. As part of this strategy, the
Company reduced operating and capital costs by deferring mining
activities at the Lynx and Pigeon open pits, while continuing to
mine and stockpile higher value ore from the Misery Main open pit
and Koala underground. The ore blend for the remainder of the
current fiscal year is expected to be a blend of the higher value
Misery Main and Koala ore of which approximately 750,000 tonnes was
available in stock-pile when the plant resumed operations. The
total cost of the process plant repairs is approximately US$15
million.
“We are very pleased the process plant repairs have been
substantially completed ahead of schedule and below our original
cost estimate,” said Brendan Bell, Chief Executive Officer. “This
is a testament to the outstanding skills and determined efforts of
our team at Ekati. Their contributions were instrumental in the
development and implementation of our active management strategy
which is expected to help minimize the impact of the fire on
production and cash flows for this fiscal year.”
Sale of Exceptional
Stone
A 186 carat gem quality diamond was sold for US$2.8 million at
the Company’s most recent sale in September. The Company recovered
the stone in early June during the processing of feed from the
Pigeon kimberlite. The stone was the largest gem quality diamond
ever recovered at the Ekati mine.
“The Ekati mine is world-renowned for its premium gem quality
diamonds,” said Mr. Bell. “We are particularly encouraged that this
exceptional stone was recovered during the processing of ore mined
from the early benches of the Pigeon open pit. The recovery of a
gem quality stone of this size is a reminder that there continues
to be upside potential to the modelled prices used for our Ekati
ore bodies.”
Forward-Looking InformationCertain information included
herein that is not current or historical factual information,
including information about mining activities and other plans at
the Ekati Diamond Mine constitute forward-looking information or
statements within the meaning of applicable securities laws.
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; mining methods;
currency exchange rates; 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, variations in mineral
reserve and mineral resource estimates, grade estimates and
expected recovery rates, failure of plant, equipment or processes
to operate as anticipated, 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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version on businesswire.com: http://www.businesswire.com/news/home/20160922006222/en/
Dominion Diamond CorporationContacts:Investor RelationsMs. Kelley Stamm,
416-205-4380Manager, Investor
Relationskstamm@ddcorp.caorMedia
RelationsMs. Laura Worsley-Brown, 867-669-6105Senior
Advisor, External Relationslaura.worsley-brown@ekati.ddcorp.ca