David Ryan
Northern News Services
Wednesday, February 14, 2007

YELLOWKNIFE - High-grade ore at the Diavik Diamond Mine is allowing the mine to recoup some of its losses from last year's shortened ice road season.

During the fourth quarter of 2006, the company pulled 2.5 million carats from the ground for a total of 9.8 million carats during the entire year, said Tom Hoefer, manager of external and internal affairs at the mine.

"The ore grade was very high," he said. "It exceeded our expectations."

A portion of the production was high-grade ore from the A154 kimberlite pipe, he said.

Having high carat counts helped to recoup money lost during the shortened ice road season, which forced the company to fly in supplies, including the RX-2001 hydraulic shovel, he said.

The mine continues to do decline drilling as part of an underground mining feasibility study, he said. Work is being done to access the A154 North and South ore bodies.

With feasibility work on the go, a new type of drill is being used to help limit explosive work. The drill, known as a continuous miner, strips ore off the face of the tunnel wall instead of the normal blasting procedure, he said.

The new machine should help reduce the amount of ammonia, which is a byproduct of explosive work done at the mine, said Hoefer.

As of the end of the quarter there were 748 workers at the mine not including contractors, he said. Of these, 67 per cent were Northerners - of whom roughly half were aboriginal, he said.

One contracted company employing a number of aboriginal workers was Ek'Ati Services, which has been active at the mine since construction.

Handling food preparation, ordering and housekeeping, the firm employs 60 workers at Diavik, said branch manager Bob Davies.

Of these, 80 per cent are Northerners and more than half are aboriginal, he said.

"We've worked hard at creating a solid relationship," he said. "We look forward to being there for the duration of the mine."