The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Dominion Diamond Corp. March 31 announced an increase in reserves for the Diavik diamond mine in Northwest Territories that supports two additional years of production, extending the life of this operation to 2025.
The new mine plan, along with updated reserves and resources for Diavik are included in an updated technical report for Diavik.
The new plan anticipates the mine will recover 46 million carats of diamonds from 2017 through 2025, an increase of 6.3 million carats over the previous technical report published in 2015.
Dominion owns a 40 percent stake in Diavik, Rio Tinto plc owns the other 60 percent and is operator of the mine.
Total revenue forecasted in the updated mine plan, on a 100 percent basis, is estimated to be roughly C$9 billion and total operating cash flow is anticipated to be around C$3.7 billion between 2017 and 2025.
"The updated life of the mine plan for Diavik extends the mine life, increases carat production, and grows future revenues and cash flows, while maintaining operating costs and capital expenditures at levels that are consistent with earlier forecasts," Dominion Chairman Jim Gowans explained.
"The focus on cost efficiency improvements and development of the A-21 pipe, which underpins the mine life extension, is consistent with our goal of increasing net asset value per share." The A-21 kimberlite pipe, which is slated to begin production in 2018, is expected to contribute 9.4 million carats of diamonds over roughly five years.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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