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Live long and prosper
Kimberlite discovery at Ekati Diamond Mine may add 15 years to operational life

Daron Letts
Northern News Services
Published Saturday, September 7, 2013

NORTHWEST TERRITORIES
Ekati Diamond Mine may extend its life by more than a decade past its projected 2019 end date, due to a promising kimberlite pipe not previously factored into the current mine plan.

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Ekati Diamond Mine may extend past its projected 2019 closing date, due to the potential development of the Jay Pipe. - photo courtesy of BHP Billiton

"Looking to the future, we have already defined a concept for the mining of the Jay Pipe with the potential to add 10 to 15 years of production beyond the current Ekati Mine Plan," chairman and CEO Robert Gannicott stated in a Sept. 4 news release.

The Jay Pipe is considered the mine's most significant prospect due its large size and high grade -- 36.2 million tonnes of indicated mineral resources at an average grade of 2.2 carats per tonne. The Jay pipe deposit is located below Lac du Sauvage, north of Lac de Gras, and is a little more than one kilometre from the shoreline. The area and shoreline close to the Jay deposit is undeveloped except for the Misery pit and related infrastructure, which is located approximately seven kilometres southeast The main Ekati mine infrastructure is located approximately 30 kilometres to the northwest.

Ekati, which at more than 260,000 hectares is the North's largest mine, contains about 150 known kimberlites with mineral resources currently estimated for eight pipes, and mineral reserves for five.

A project description report for the Lynx Pipe is expected to be submitted by the company in mid-September as a lead-up to the Jay project, the report for which is expected to be filed in mid-October.

Dominion, formerly known as Harry Winston Diamond Corp., acquired BHP Billiton's 80 per cent stake in the diamond mine this past spring for US $553-million. The company also holds a 58.8 per cent stake in the surrounding areas containing prospective resources and sells diamonds from its 40 per cent ownership in the Diavik Diamond Mine.

During the second fiscal quarter, the company sold approximately 600,000 carats from Ekati for a total of $170.5 million for an average price per carat of $289. Shares of Yellowknife-based Dominion Diamond Corp. closed at $13.30 on the Toronto Stock Exchange on Sept. 4, down $.07.

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