Doug Ashbury
Northern News Services

NNSL (May 05/99) - Ekati has reached a milestone -- the mine at Lac de Gras has produced its first million carats.

The mine, owned by BHP Diamonds, Dia Met Minerals and geologists Chuck Fipke and Stewart Blusson hit the million mark April 29.

Some 526,000 carats of rough diamonds from Ekati have been sold so far for a total of $111.8 million ($76 million US).

"In addition to the solid level of production achieved within six months of mine opening, we are particularly pleased with the positive response from the diamond market," BHP Diamonds president James Rothwell said.

"There is clearly a strong interest in a steady, long-term supply of quality rough diamonds from a reliable producer," he said.

"The joint venture has reached a major milestone in production and we are now generating a significant level of revenue," Dia Met Minerals president James Eccott said.

"Canada is now an important supplier to the diamond trade."

The $111.8 million in rough diamonds were sold through BHP Diamonds' Belgium sales office in Antwerp.

There have been four cycles of sales. Average values per carat have increased with each of the four sales.

All mine production must be valued, shipped and sorted prior to sale, which results in a time lag of about two months between production and sales.

Sales to main clients will continue on an average five-week cycle, Dia Met said.

Sales of smaller parcels of rough diamonds for market testing purposes are ongoing.

For March, the latest month for which production figures were available, Ekati churned out 236,598 carats of diamonds.

At full production, the BHP Diamonds/Dia Met Minerals Ekati diamond mine at Lac de Gras, will generate about 250,000 carats of rough diamonds per month.

BHP spokesperson Graham Nicholls said the per carat value of the rough diamonds is "holding up very well. We're pleased with the sales results out of our Antwerp sales office."

Ekati went officially operational on Oct. 14, 1998, and produced 27,839 carats in that month.

In November and December, rates were 80,048 and 169,892 respectively.

Some 217,000 carats were produced in January and 118,000 were produced in February.

From October through March, Ekati had generated about 850,000 carats of rough diamonds.