Yellowknife (July 30/03) - De Beers Canada Mining Inc. is one step closer to creating 500 jobs and spending $500 million at its Snap Lake diamond project.

De Beers announced Monday that the Mackenzie Valley Impact Review Board completed an environmental assessment of the Snap Lake Project.

The board is recommending to the Department of Indian and Northern Affairs that the project proceed to the regulatory phase.

Richard Molyneaux, president and CEO of De Beers Canada called it "a significant step forward ... we hope to receive the land and water-use permits during the first quarter of next year, allowing us to use the 2004 winter road to start site activities."

Linda Dorrington, manager of communications for De Beers, said the regulatory process is "just part of what De Beers does and has done over the 114 years we have been in business."

The mine is expected to employ 489 workers but Dorrington said employment numbers will be slightly higher during the construction phase.

De Beers has committed to hiring 40 per cent from the North during the construction phase and 60 per cent from the North during the operations stage, said Dorrington.

The company hopes to get land and water use permits early next year and start moving heavy equipment to the site in 2005.

The board report recommended that De Beers monitor dissolved solids and volume of water discharged into Snap Lake and provide ongoing reports.

De Beers has agreed total dissolved solids within the lake will not exceed 350 milligrams per litre.

A list of other recommendations include: a caribou protection plan, a waste and odour management strategy, an on-site wildlife management plan and a study examining behavioral responses of wildlife to mine-related disturbances.