Dominion CEO takes medical leave
Jay Project continues to advance
while Robert Gannicott receives treatment
Daron Letts
Northern News Services
Published Monday, November 24, 2014
NORTHWEST TERRITORIES
Robert Gannicott, chair and CEO of Dominion Diamond Corporation (TSX: DDC), has taken a medical leave of absence to undergo "important treatment," according to a Nov. 20 company news release.
The treatment is expected to continue until mid-February.
Dan Jarvis, a lead director and longstanding board member, is assuming the role of acting chair, supported by audit committee chair Ollie Oliveira. Brendan Bell, executive vice-president, is in the role of acting CEO, supported by Elliot Holland, vice-president responsible for the Jay Project and business development.
Holland will oversee the advancement of the Jay Project, which could extend the operational life of the mine beyond the end of the Misery and Pigeon open pits to 2030, more than a decade past the current projected closure date of 2019. The Misery extension entered into commercial production in early September.
Earlier this month the company posted $253,473,000 in surety bonds with the GNWT to meet the obligation under its water licence to reclaim the Ekati mine site.
The company filed the Jay Project's Developer's Assessment Report to the Mackenzie Valley Environmental Impact Review Board earlier this month.
The Jay kimberlite pipe is located approximately 25 kilometres south-east of the Ekati mine's main facilities, which would be used for the Jay Project. The Jay Project is part of the buffer Joint Venture, in which Dominion holds a majority interest.
The company has spent approximately $15 million developing the project to date, according to its second quarter financial report.
Following the analytical and hearing phases of the environmental assessment process, the company expects to receive a decision from the federal government by late 2015, after which the water licence and land-use permitting process can unfold over about the subsequent six months.
A pre-feasibility study is scheduled to be published before 2015.
The project timeline, which calls for construction to be underway before 2019, anticipates dike construction from summer 2016 through 2019, followed by conventional open-pit mining. The Jay kimberlite is located beneath Lac du Sauvage and requires a horseshoe-shaped portion of the lake to be isolated and drained.
Production is expected to begin 2020. The company identifies the potential for underground operations past the projected 2030 end of open-pit operations at the Jay pipe.
Gannicott was appointed CEO of the company, formerly known as Harry Winston Diamond Corporation, in 1999. He was appointed chair of the board in June 2004.
Gannicott shared optimism with investors following the company's September announcement that it achieved $277.3 million in second quarter revenue from three international diamond sales, resulting in $46.5 million in operating profit in September.
"In addition to the good fortune of improved rough diamond prices and better than expected grades, we've also embedded improvements to diamond recovery, rough diamond marketing, and cost control efficiencies," he said.
The company acquired BHP Billiton's 80 per cent stake in Ekati Diamond Mine in spring 2013 for US $553 million. The company operates the mine through its 88.9 per cent ownership. It holds a 65.3 per cent interest in the surrounding areas, which contain additional resources including the Jay Project, and sells diamonds from its 40 per cent ownership in the Diavik Diamond Mine.
