Burgundy Diamond Mines Ltd.

Exploration turns up surprise diamonds below mine plan depth.

Burgundy Diamond Mines Ltd. Sept. 9 announced promising results from its ongoing drilling program at the Misery underground mine at its Ekati diamond project in Northwest Territories, Canada, with indications the mine's life could extend well beyond the initial 2026 end date.

With the mid-2023 Ekati acquisition, Burgundy expanded its footprint in Canada's diamond sector, building on its existing 40% stake in North Arrow Minerals Ltd.'s Naujaat diamond project in Nunavut and further solidifying its position in the Canadian diamond market.

Located roughly 300 kilometers (186 miles) northeast of NWT's capital, Yellowknife, the Ekati Mine is one of Canada's premier diamond producers. Since production began in 1998, Ekati has yielded over 80 million carats of diamonds, including the highly sought-after fancy yellow-colored stones that have bolstered its reputation in global markets.

Consisting of 122 mining leases totaling approximately 113,485 hectares (280,417 acres), Ekati holds two active diamond operations – the Sable open-pit and Misery underground mines – which run year-round despite sub-arctic conditions.

With approximately 30 million carats in reserves, Burgundy began exploration efforts to extend the mine's life and further optimize production.

Beyond its active operations, Burgundy sees immense promise in its Point Lake project, located roughly three kilometers (two miles) northeast of Misery Camp, which represents a future opportunity for expanding Ekati's output.

Historically, Point Lake is significant as the first diamondiferous kimberlite discovery in NWT, sparking what is widely regarded as the greatest diamond staking rush in North America. Although in the development stage, with initial production set to begin in late 2024 and full production expected in early 2025, this project holds the capability of adding an estimated 24 million carats to the mine's indicated resources.

Following the strong performance from its first full quarter of production at Ekati, Burgundy began exploration work in July at Misery to expand the known kimberlite body and extend the mine's life.

With six of the planned 34 holes drilled, early results indicate promising signs of a larger ore body at depth.

"We are pleased to announce that results from our current drilling program are indicating that the Misery pipe, which is a very high value ore source requiring almost zero development capital, is very likely to stay in production well past the original 2026 date," said Burgundy Diamond Mines CEO Kim Truter.

So far, all six holes targeting the Misery Main ore body intersected the kimberlite pipe earlier than expected, suggesting a likelihood for greater diamond recovery. This was further supported by the discovery in drill hole MDC-77, where a fancy yellow diamond was found 25 meters below the previously planned mine level, beyond the modeled ore body.

Looking ahead, Burgundy is set to begin drilling and bulk sampling the Southwest extension of the Misery ore body in the fourth quarter of 2024.

This extension, although known to be diamondiferous from historic mining in the open pit, has yet to be commercially targeted from the underground operation. Burgundy aims to assess the extent and quality of this target to determine its potential contribution to future mining at Misery, adding to the company's efforts to further expand Ekati's output and longevity.

Due to the promising results from current drilling, Burgundy has decided to postpone the development of the Sable underground project by at least a year, focusing instead on the surplus ore at Misery.

Further, the company aims to release an updated mineral resource and ore reserve statement for Misery Main and its Southwest extension in the next six months, followed shortly by the release of a possible extended mine plan for Ekati in early 2025.