Andrea Markey
Northern News Services

Yellowknife (Nov 30/05) - Work on what could be the NWT's fourth diamond mine is moving forward.

Applications for De Beers' Gahcho Kue diamond mine were accepted by the Mackenzie Valley Land and Water Board yesterday.

Gahcho Kue Joint-venture: De Beers Canada Inc. (51 per cent); Mountain Province Diamonds Inc. (44.1 per cent); Camphor Ventures (4.9 per cent) Construction cost: $825 million Production: 3 million carats a year Employees during construction: 600; during production: 400 Anticipated mine life: 20 years Mining method: open pit Snap Lake: Construction costs: $636 million Production rate: 1.5 million carats per year Employees during production: 500 Mine life: 20 years Mining method: underground

The papers were filed last week after three kimberlite pipes, 5034, Hearne and Tuzo, were confirmed economic to mine, said John McConnell, vice-president of NWT projects with De Beers Canada.

Permitting is expected to take approximately three years.

McConnell made the announcement at yesterday's Yellowknife Chamber of Commerce luncheon.

"Gahcho Kue should start full production around 2012 - when Ekati and Diavik might be approaching their sunset years," he said.

"De Beers will be here for a long time."

This will be the NWT's fourth diamond mine, and Canada's sixth, after Tahera's Jericho mine (2006) and De Beers' Victor project (2008) in northern Ontario.

In July, De Beers board of directors approved $38.5 million to continue with regulatory processes.

To date, more than $80 million has been spent on construction for De Beers' underground Snap Lake project, with $50 million of that going to Northern companies, he said.

Similar expenditures can be expected for the open-pit Gahcho Kue project, he said.

The majority of Northern contracts have gone to Yellowknife-based businesses, said Marino Casebeer, executive director of the Yellowknife Chamber of Commerce.

"The Gahcho Kue project sustains that effect," he said.

And businesses are interested.

Usual attendance at Chamber luncheons averages between 50 and 75 people, he said. Yesterday, more than 100 people filled a banquet hall for the presentation at the Explorer Hotel.