Dominion Starts Ekati Diamond Mine Process Extension
October 24, 13Robert Gannicott, Chairman and Chief Executive Officer stated: "The scale and robust nature of the Jay-Cardinal Project has the potential to secure the future not just of the Ekati diamond mine, but of the Northwest Territories diamond industry."
The application filed by Dominion, which owns 80 percent of the Ekati operation, represents the first stage in the regulatory approval process. Detailed study work started immediately after Dominion bought BHP Billiton’s share in the mine, as well as other assets, last April.
“The Jay-Cardinal Project involves the development of the largest diamondiferous resource in North America. The development and mining of these kimberlites is the cornerstone of Dominion Diamond Corporation's strategy for building a long-term, sustainable Canadian diamonds business. At the Jay pipe, drilling to date has established 78 million carats of indicated resource and 13 million carats of inferred resource,” Dominion said in a statement.
“Further work at Jay during the coming winter is designed to enable consideration of an open pit reserve to support development of the project. In itself, the Jay-Cardinal Project has the potential to extend the operating life of the Ekati diamond mine in the order of 10 to 20 years beyond the currently scheduled closure in 2019.”
The firm said that the Jay-Cardinal Project schedule anticipates Environmental Assessment approval before the end of 2015. Construction would then commence, leading to the planned release of diamond-bearing kimberlite to the process plant by 2019.
The Jay and Cardinal kimberlite pipes are located in Lac du Sauvage in the southeastern part of the Ekati mine property, about 25 km from the main facilities and approximately 7 km to the northeast of the company's Misery mining area. The two pipes are located in the Buffer Zone Joint Venture, in which the company has a 58.8 percent control interest.
Mining of the Jay and Cardinal kimberlite pipes will require two freshwater diversions around an area within the Lac du Sauvage. The water level would be drawn down to a level that exposes the two kimberlite pipes for open pit mining; underground mining is also planned. Diamond-bearing kimberlite would be trucked to the existing Ekati diamond mine process plant using the existing Misery haul road. Processed kimberlite tailings would be deposited into mined-out open pits at the Ekati site such that environmental disturbances related to expanding or constructing new deposition areas is avoided.
Dominion has already started the initial work on a pre-feasibility report for the development which it aims to complete in during 2014.