Doug Ashbury
Northern News Services

NNSL (Jan 27/99) - Ekati mine owners have completed their first-ever rough diamond sales.

"We are very pleased with the positive market response to our initial sales, which confirms a strong interest in Ekati production, despite current market conditions," BHP Diamonds President James Rothwell said.

BHP Diamonds and Dia Met Minerals, which own 51 per cent and 29 per cent of Ekati respectively, report initial rough diamond sales of about $12.9 million.

About 68,500 carats, mined in October and November, were sold at an average price of $189 ($124 US) a carat.

Ekati's Panda pit, currently being mined, has reserves estimated at 12.6 million tonnes, holding 1.09 carats per tonne with an average per carat value of $198 ($130 US).

Larger stones of 10.8 carats and up were not included in the first group of sales and will be marketed separately.

During October and November, 107,887 carats were produced at Ekati.

December's production was 169,892 carats. Full production of about 250,000 carats is expected by March, 1999.

"The initial sales demonstrate the high quality of rough diamonds produced from Ekati, and the sound approach that is being taken to the initial marketing phase," Dia Met President James Eccott said.

"I am delighted to say that we are now producing revenue from the Ekati diamond mine," he said.

BHP and Dia Met plan diamond sales every four to five weeks. Sales of small parcels of rough diamonds will also be a part of the sales strategy.

The potential for a bulk sale of product to De Beers remains under consideration, the company said.

BHP and Dia Met did not say who the buyers were but the companies have said they will market the rough diamonds through multiple channels.