Doug Ashbury
Northern News Services

NNSL (Jan 18/99) - BHP Diamonds has applied for land, water and fisheries permits for three additional kimberlite pipes at the Ekati mine.

The permits apply to Beartooth, Pigeon and Sable. A fourth pipe, Koala North, is also a promising prospect for mining. This pipe is covered by existing permits.

By filing with the Department of Indian Affairs and Northern Development, BHP hopes to have the permits in place by the time it is ready to mine the additional pipes.

When it comes to defining the worth of each of the four pipes, Sable is most advanced, BHP spokesperson Graham Nicholls said.

This pipe has proven reserves of 11-million tonnes of kimberlite, as well as probable reserves of 1.9-million tonnes kimberlite, with .93 carats per tonne valued at about $99 a carat. Sable is located about 10 kilometres from the main Ekati camp.

"(We) don't have resource definition for the other (three) pipes but we are close," Nicholls said.

Nicholls described Koala North and Beartooth as pipes with good diamond grades -- carats per tonne -- and good values -- dollars per carat. But, he added, these two pipes are small in size.

If all goes according to plan, BHP could be mining Koala North in 2002. Mining of Sable, Beartooth and Pigeon could commence in 2005-06.

"At this point we feel it is prudent to initiate the regulatory process," Nicholls said.

If these pipes prove viable, the life of Ekati will be extended beyond its current estimated 17-year period.