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 Diavik is planning to invest close to $265 million for underground exploration at its diamond mine. The money includes construction costs for the erection of the A418 dike as well as an exploratory decline providing access to the A418 pipe and the north and south A154 pipe. |
"One-hundred ninety million dollars will be spent on a dyke and another $75 million will be spent on the construction of a decline that we can move equipment through, such as trucks," said Diavik's manager of external relations Tom Hoefer.
Diavik Diamond Mines Inc. is located 300km northeast of Yellowknife. "As we speak, we're getting the materials to the site. There's a number of things we need to prepare. The exploratory decline is close to the north construction camp. That will be dismantled and moved to the south side of the island and moved into other camps," said Hoefer.
It's not the first time Diavik has gone underground.
"We went underground in 1995-96 and when we took a bulk sample," said Hoefer.
He says the value of the carats held within the A154N pipe has doubled over the past year, compared to original sampling.
"We were able to get more diamonds out and the markets have changed," he said.
"What that means is A154N has underground mine potential, whereas it didn't before."
Now, Diavik has three areas for possible underground exploration with the A154S and A418 pipes.
The exploratory decline will provide access to the A418 pipe and both the north and south A154 pipes to provide data to support feasibility studies into underground mining of the three ore bodies. Diavik will complete these studies in the first half of 2007, states a news release issued Dec. 8.
With the processing plant operating very efficiently and the production going up, the 20-year mine life will stay the same, said Hoefer.
Approximately 250 workers will be employed on the project, which will get underway once the winter road opens up.
The company plans to bring in a significant crushing facility to build the dyke.
The construction activity should bring loads onto the Contwoyto Winter Road up to 8,000 when combined with the De Beers Snap Lake activity, said Hoefer.
With eventual underground production, Diavik is mindful of upgrading the skills of its workers.
Hoefer said the company will take advantage of the mine training program announced last spring to upgrade the skills of its workforce.
Diavik produced 3.8 million carats in 2003.
Production in 2004 will be well over the seven million carat mark.
Production in 2005 is expected to be more than 8.5 million carats
