The first diamonds from the mine, recovered during plant commissioning trials in December, have been evaluated for royalties and are expected to be delivered to the joint venture partners by the end of January.

The mine is owned by Diavik Diamond Mines Inc. (60 per cent) and Aber Diamond Corporation (40 per cent).

In its most recent project status report last week, Diavik had little but good news.

Construction is within budget, ahead of schedule and very close to completion, said the company.

Project expenditures to the end of December totalled nearly $1.22 billion. The mine will cost an estimated $1.25 billion on completion -- expected in February.

Diavik reports that overburden removal from the A154 open pit mine proceeded satisfactorily during the fourth quarter of 2002.

Commissioning trials of the processing and recovery plants were continuing on an intermittent basis at year end, utilizing low grade mineralization.

Operating rates at the two plants "continued to ramp up in line with planned levels during December" as increasing quantities of ore became available to the processing plant, said the company.

The construction workforce peaked at about 800 during the last quarter of 2002. Northern participation during all phases of construction to date totals about 44 per cent, said the company.

Contractors had tallied an impressive 1.3 million hours of injury-free work by year-end.

Diavik's operating plan calls for a two-year ramp-up period, after which the mine will process an estimated 1.5 million tonnes of kimberlite a year. Annual diamond production at peak is estimated at seven million carats.

Over its expected 20 year life, the mine will produce about 107 million carats.

The mine will employ about 500 people including contractors. At startup, about 300 workers will be from the North.

Diavik estimates that it will spend about $100 million a year purchasing goods and services.

When it reaches peak production, Diavik will produce about five per cent of the world's rough diamond supply. By 2006, Diavik and the neighbouring Ekati mine (BHP Billiton) at Lac De Gras will produce an estimated 12 per cent of the world's supply of rough diamonds.