SOMBA K'E/YELLOWKNIFE - The Gahcho Kue joint venture - poised to become the NWT's fourth diamond mine - reached a significant milestone last month.

In September, partners De Beers Canada (51 per cent owner) and Mountain Province Diamonds (49 per cent) hired JDS Energy and Mining to produce a $10 million feasibility study.

Commodity: Diamonds Joint venture partners: De Beers Canada (51 per cent owner); Mountain Province Diamonds (49 per cent) Location: 300 km northeast of Yellowknife Current indicated resource: 30.2 million tonnes grading at 1.67 carats per tonne (approximately 50.5 million carats) Current inferred resource: 6 million tonnes grading at 1.73 carats per tonne (approximately 10.3 million carats) Potential mine life: 15 years Projected cost: Under review Spending by partners as of September: $194 million Projected construction jobs: Under review Projected mine production jobs: 400 Status: Under environmental assessment; feasibility study underway

"It's a really detailed cost estimate that addresses the final project description, that looks at the permitting process, the plan for construction and the execution for operations phase and closure," said Cathie Bolstad, spokesperson for De Beers Canada.

With a bankable feasibility study in hand, the project can move to construction and then production, although there are still regulatory hurdles to overcome.

Bolstad was hesitant to comment on when the mine might be up and running.

"We're working on a timeline, but we never want to second guess the regulatory process," she said. "I think it would be inappropriate to make assumptions about how long the (process) will take."

The Mackenzie Valley Environmental Impact Review Board is awaiting an environmental impact statement (EIS) from the partners. Bolstad said the companies will be advising the board later this month on when it can expect the statement, which will then propel the project further down the environmental assessment process that eventually culminates in the necessary permits to construct and operate the mine.

Next year, De Beers will be ramping up the number of visits to NWT communities to update residents about the state of the project.

"During 2009, we scaled back on a lot of things, including trips to the communities, just because of the economic uncertainty," said Bolstad.

"We always want to dialogue with the communities, keep them informed, proposing to get their input," she continued.

"In 2010, we're going to be going back into the communities to bring them back up to speed on where we are with Gahcho Kue, what input we've had from them to date and how it has shaped any changes we're making as we prepare the EIS."

Spending by the partners on Gahcho Kue reached $194 million in September.

De Beers also operates the Snap Lake diamond mine, 220 km northeast of Yellowknife.

Responding to sliding demand for diamonds worldwide in the wake of the global economic slowdown, De Beers cut back staff, reduced production and shut down the mine for six weeks during summer.

With diamond sales picking steadily up in recent months, De Beers cancelled a planned four week winter shutdown at Snap Lake in late September.

"It's been a tough year for our industry, but we're trending in the right direction," said Bolstad.

"And while the economic slowdown has made this year particularly troublesome, we have never lost sight that the potential for the industry is great and that Gahcho Kue is positioned to help us meet long-term demand for diamonds, because the number of operating mines is shrinking over time."