The Diavik mine in Canada.

(IDEX Online News) – Dominion Diamond Corporation said in a revised forecast for calendar year 2013 that it predicts an 11-percent rise in production from the Diavik diamond mine.

 

The firm, formerly Harry Winston Diamond Corp, said that it forecasts approximately output of 6.6 million carats from the mining of approximately 1.6 million tonnes of ore and the processing of approximately 2.0 million tonnes of material from both mining and stockpiles.

 

Dominion has a 40-percent holding in the Diavik mine.

 

The rise from the previously disclosed plan relates primarily to the processing of more stockpiled ore during the calendar year. The plan is subject to further revision at the end of the second quarter.

 

The firm added that a new mine plan and budget for the Ekati diamond mine for the next operating period is currently under review.

 

The plan foresees total production for the period from April 10, 2013, when the firm completed the purchase of BHP Billiton's 80-percent holding to the end of 2013 of approximately 1.0 million carats from the mining of approximately 3.5 million tonnes from mineral reserve, and the processing of approximately 3.9 million tonnes, with the additional material being made up of diamond bearing kimberlite from a satellite body in the Misery open pit that is excavated as part of the waste stripping as the pit profile is advanced.

 

Rough diamond sales for fiscal 2014, based on current rough diamond prices, are expected to total approximately $730 million, with $365 million coming each from the 40 percent share of Diavik and the 80 percent share of Ekati.

 

Included in the fiscal 2014 sales for the Diavik mine is approximately $25 million from sales of goods available for sale at January 31, 2013, and for the Ekati mine is approximately $70 million from opening acquisition inventory that is expected to be sold towards the end of fiscal 2014.

 

The model that had been included with the reserves and resource statement that was issued on April 24, 2013 assumed, as revenue for the period from January 1, 2013 to June 30, 2013, of approximately $135 million from the sale of all inventory on hand during that period.

 

This model was prepared to justify the classification of reserves at the Ekati mine by demonstrating economic value under the reporting rules of National Instrument 43-101 and does not constitute the operating plan for the project.

 

The inventory is not expected to be sold prior to June 30, 2013, and the company's technical report in respect of Ekati is expected to be filed this month.