Harry Winston Diamond Corporation Reports Diavik Diamond Mine
Fourth Quarter Production
TORONTO, Jan. 15, 2013 /CNW/ - Harry Winston Diamond
Corporation (TSX:HW, NYSE:HWD) (the "Company") reports that in the
fourth calendar quarter of 2012, the Diavik Diamond Mine produced
1.9 million carats from 0.5 million tonnes of ore processed, as
compared to 1.6 million carats from 0.6 million tonnes of ore
processed in the comparable quarter of the prior year. The 19%
increase in carats recovered in the quarter was primarily due to
improved grades in each of the kimberlite pipes, partially offset
by the 17% decline in ore processed in the quarter, which was due
to a reduction in processing plant throughput that resulted from
changes in the geological composition of the ore. Open pit mining
of the A-418 kimberlite pipe concluded in September, although
processing of open pit ore from the A-418 kimberlite pipe will
continue into calendar 2013.
For the 2012 calendar year, the Diavik Diamond
Mine produced 7.2 million carats from 2.1 million tonnes of ore
processed compared to production of 6.7 million carats from 2.2
million tonnes of ore processed in the prior year. Production for
the 2012 calendar year consisted of 4.3 million carats produced
from 1.2 million tonnes of ore from the A-418 kimberlite pipe, 1.9
million carats produced from 0.4 million tonnes of ore from the
A-154 South kimberlite pipe, and 0.9 million carats produced from
0.5 million tonnes of ore from the A-154 North kimberlite pipe.
Also included in production for the 2012 calendar year was an
estimated 0.1 million carats from reprocessed plant rejects
("RPR").
The decrease in carats from the original 2012
calendar plan of 8.2 million carats was primarily due to deferring
the processing and recovery of lower value carats from the RPR in
favour of processing underground ore containing higher valued
carats. Production was also impacted by a reduction in processing
plant throughput due to changes in the geological composition of
the ore.
A new mine plan and budget for calendar 2013 is
under final review by Rio Tinto plc and the Company. The plan for
calendar 2013 foresees Diavik Diamond Mine production of
approximately 6 million carats from the mining and processing of
approximately 1.6 million tonnes of ore with a further 0.2 million
tonnes processed from stockpile ore. 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 0.4 million tonnes from
A-418 kimberlite pipes. Included in the estimated production
for calendar 2013 is approximately 0.6 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.
Based on the prices from the most recent
December 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 as
follows:
Ore Type |
December 2012
Average Price per Carat
(in US dollars) |
A-154 South |
$135 |
A-154 North |
$170 |
A-418 |
$95 |
RPR |
$45 |
About Harry Winston Diamond
Corporation
Harry Winston Diamond Corporation is a
diamond enterprise with premium assets in the mining and retailing
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, Tokyo, Hong
Kong 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.
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.
For more information, please visit
www.harrywinston.com. or for investor information, visit
http://investor.harrywinston.com.
SOURCE Harry Winston Diamond Corporation