Diavik to increase Production in 2004
November 20, 03
Diavik Diamond Mines Inc., the company operating the Diavik diamond mine, presented mine owners Aber and Rio Tinto with an updated mine plan for approval.
The new plan calls for increased throughput to 1.7 million tons of ore in calendar 2004, producing approximately 8.2 million carats of diamonds.
The diamond market is currently strong and both Aber and Rio Tinto believe the market can “readily accept significant additional Diavik product”.
At the heart of the updated mine plan is expand production while increasing ore reserves through better definition of the existing resources and through aggressive exploration of the 240 thousand hectare Diavik Property.
On the basis of a planned 76 percent plant utilization, all of the A-154 South ore as well as 60 thousand tons of the A-154 North ore are planned to be processed through the process plant during the calendar year.
The remaining 410 thousand tons of A-154 North ore will be stockpiled at the processing plant with the objective of processing this ore as and when capacity allows.
The plan also calls for peak capacity of 2 million tons of processed ore in 2005. This requires increased investments, including the purchase of haulage trucks and an expansion of the processed kimberlite containment structure. Associated costs during calendar 2004 are projected to be C$38 million (US$29.127 million).