Dominion seeks permits to extend Ekati life
Jay kimberlite pipe could extend mine operation by two decades, according to company
Daron Letts
Northern News Services
Published Saturday, October 26, 2013
NORTHWEST TERRITORIES
Dominion Diamond Corporation filed an application to the Wek'éezhii Land and Water Board to extend the operating life of its Ekati Diamond Mine by up to 20 years.
An aerial view of the Misery pit at Ekati Diamond Mine, located about 310 kilometres northeast of Yellowknife. Dominion Diamonds Inc. acquired the mine from BHP Billiton on April 10 and is now applying for permits to extend its life beyond its previous 2019 projected end date. - photo courtesy of BHP Billiton Canada Inc.
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The company submitted applications for a new land use permit and Class A water licence to keep the mine open past its previously projected 2019 end date. The company wants to prepare now to drill the Jay and Cardinal kimberlite pipes, known as the Jay-Cardinal project, in coming years.
"The scale and robust nature of the Jay-Cardinal project has the potential to secure the future not just of the Ekati Diamond Mine, but of the Northwest Territories diamond industry," stated Robert Gannicott, Dominion chair and CEO, in a news release issued last week.
The Jay pipe alone could keep the mine in operation for 10 to 20 years after 2019, according to the company's early estimate.
The two pipes are located in Lac du Sauvage in the southeastern portion of the Ekati mine property, about 25 kilometres from the main facilities and approximately seven kilometres northeast of the Misery pit mining area. The two pipes are located in the Buffer Zone Joint Venture, in which the company has a 58.8 per cent control interest.
While Dominion is embarking on the first stage in the regulatory approval process this month, the company began study work on the additional kimberlites immediately after acquiring the mine from BHP Billiton this past April.
The Jay and Cardinal kimberlites represent the largest diamondiferous resource in North America, according to the company. Drilling at the Jay pipe to date has established 78 million carats of indicated diamonds and 13 million carats of inferred diamonds.
The company is aiming to receive s environmental assessment approval before the end of 2015, to allow construction to commence in time for the planned release of diamond-bearing kimberlite to the processing plant by 2019.
Drilling programs are planned at both pipes this winter. Dominion plans to complete a pre-feasibility report by some time next year.
