SOMBA K'E/YELLOWKNIFE
Rio Tinto and Dominion Diamond Corporation will move forward on the US $350 million development of the A21 diamond kimberlite pipe at the Diavik diamond mine, located approximately 300 km northeast of Yellowknife.

An aerial view of the Diavik Diamond Mine, located 300 km northeast of Yellowknife. The company announced last week that it would proceed with the US $350 million development of the A21 kimberlite, meaning production consistency for the company and increased mine employment. - photo courtesy Diavik Diamond Mines Inc.

Construction will take four years, beginning early 2015 and should be completed by 2016. A year of pre-production work, including lake de-watering and mine pre-stripping will follow. Diamond production is expected toward the end of 2018.

Although mining the A21 kimberlite is not anticipated to extend mine life beyond expected mine closure in 2023, it will mean more jobs both during construction and during production.

"What A21 does add is a source of incremental supply at a period when our underground production is decreasing," Marc Cameron, Diavik Diamond Mines Inc. president told News/North.

"A21 allows us to offset this and have a consistent (production) profile moving forward."

This means Diavik's current workforce of 1,000 permanent employees and contractors is expected to not only remain stable, but increase by approximately 90 full-time workers once mining commences.

Before then, mine construction will generate more employment over four years.

Construction employment is expected to peak in 2016 with 235 worker positions created. During the four years of construction, an average of 178 workers will find work at the site every year.

Diavik will tender construction opportunities locally in keeping with past practice.

"Seventy-two per cent of our spending stays in the North," Cameron said of Diavik's current business expenditures.

"We'll be striving both during construction and open-pit operations for the same performance levels."

Since 2000, $6.2 billion has been spent at Diavik, with $4.5 billion of that (72 per cent) remaining in the North.

Cameron expects A21 to produce high quality stones, similar to past Diavik mine production.

"The product from A21 is excellent quality," Cameron said. "It's similar to A-154 South, so it's a high-end, gem quality product predominately (destined) for all major consumer markets around the world."

The A21 kimberlite was discovered in 1994 and included in the original mine production plan, but not included in 2004 mine plan reserves. Between 2007 and 2008, a 5,000-tonne bulk sample was completed, as well as a 560-tonne on-ice large diameter drill program.

The A21 dike is 2.2 kilometres long and lay at up to 20 metres below Lac de Gras adjacent to East Island. The open-pit mine will require the construction of a rockfill dike to hold the lake at bay during mining.

Diavik has award-winning experience in building dikes to access underwater deposits. Two such dikes at Diavik have provided 10 years of safe, open pit activity on formerly underwater kimberlite diamond deposits.

The development of A21 marks Diavik's return to open-pit mining which had ceased in 2012 when the mine went entirely underground.

The Diavik Diamond Mine is a joint venture between the mine operator, Rio Tinto, and Dominion Diamond Corporation. Rio Tinto owns 60 per cent of the mine, with Dominion Diamond holding the remaining 40 per cent.

All significant regulatory approvals are already in place as A21 was a part of the original mine plan.

An updated reserves and resource statement is expected in early 2015.

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