De Beers Canada Gahcho Kue Project Funding Approved
July 26, 05
De Beers Canada is moving forward with its Gahcho Kue joint venture project, approving a C$38.5 million ($31.6 million) investment in the project.
The miner says the funds will cover initiation of the environmental assessment and permitting process, maintenance of ongoing environmental studies, consultation and stakeholder engagement, and further large diameter sample drilling on the 5034 and Tuzo kimberlites. The work will be carried out over 2005 and 2006.
After seven years of work on the project, and an 18-month study which was completed in June, De Beers believes the project is feasible.
“We are pleased at the positive outcome of the study and our decision to advance the project. Our intention is to make this our second diamond mine in the NWT, and believe the timing of the project is ideal for the long-term sustainability of the diamond industry in the north,” said Richard Molyneux, President and CEO of De Beers Canada.
De Beers is spending $1.6 billion over the next four years to concurrently develop the Snap Lake diamond mine in the NWT and the Victor mine in northern Ontario in 2006.
The Gahcho Kue project, approximately 300 km northeast of Yellowknife, is a joint venture between De Beers Canada Inc., Mountain Province Diamonds Inc and Camphor Ventures Inc.