Resource World Magazine

30 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 5 MINING C anada's diamond industry began in the Northwest Territories in 1991 with the Dia Met Minerals discov- ery and development of the Ekati Mine at Lac de Gras followed by the Diavik and Snap Lake mines and later by the Victor Mine in Ontario. Dominion Diamond [DDC-TSX, NYSE] has a majority interest in the producing Ekati diamond mine. In 1994, a 1.84-carat diamond was discovered in drill core by Aber Resources and subsequently became the A1545 kimberlite currently being mined by Rio Tinto plc [RIO-NYSE, ASX, London], 60%, and Dominion Diamond, 40%, at Diavik. Québec will see its first producing diamond mine, Stornoway Diamond's Renard Mine by 2016/17. Although diamond exploration is taking place in other parts of Canada, the Gahcho Kué area, 300 km northeast of Yellowknife, is where the most advanced work is under- way by Mountain Province Diamonds [MPV-TSX; MDM-NYSE MKT] and partner De Beers (85%-owned by Anglo American Plc [AAUKY-OTC PK; AAL-London; AGLJ- Jo'burg]) where diamond production is scheduled to begin in 2016, and in an adjoining exploration project by Kennady Diamonds [KDI-TSXV] where prospective diamond-bearing kimberlites have been discovered. Typical of NT's diamond mines, Gahcho Kué is a fly-in operation dependent on winter ice road access over a four to six- week January/February window. Mountain Province – Kimberlites with diamond-bearing potential were discov- ered at Gahcho Kué in 1990s as a result of the recognition of the diamond potential of much of the Slave Precambrian craton extending well beyond the initial discov- eries at Ekati and Diavik in the vicinity of Lac de Gras as well as the nearby Snap Lake discovery. After a series of mergers and amalgamations, Mountain Province became the surviving company and later partnered with De Beers to form a 49/51 joint venture, respectively. The project is well advanced with camp and mill facilities under construction and scheduled for a 2016 production start-up. Probable open pit mine reserves are esti- mated at 35.4 million tonnes averaging 1.57 carats/tonne for a total of 55.5 mil- lion carats in the 5034, Hearne and Tuzo kimberlites. Average value for diamonds, taken from the pipes during the evaluation process, is US $174/carat. Production from the three kimberlites is estimated to yield 4.5 million carats/year over a minimum 12 years. In addition to the probable reserves, inferred resources, situated at depth in the kimberlites have been estimated at 11.3 million tonnes averaging 1.63 carats/tonne. Of note, in 2008, Mountain Province/De Beers recovered a 25.13-carat diamond val- ued at $20,000 /carat from a drill core bulk sample at the Tuzo pipe. Recent drilling on the Tuzo kimberlite indicates that the dia- mond resource still extends to a depth of 740 metres below the surface and remains open to depth. A fourth diamond-bear- ing kimberlite, Tesla, has undetermined resources but is expected to be mined in the future, making this project one of the largest diamond mines globally under construction and one of Canada's major high-grade and expected long life mines. Kennady Diamonds – Adjoining the Mountain Province/De Beers Gahcho Kué Project is Kennady Diamonds where high-grade diamond counts have been dis- covered in two kimberlite bodies, Kelvin and Faraday, in addition to two other dia- mond-bearing bodies – Doyle and MZ. Gahcho kué – canada's newest diamond mining camp in the making by Edward Schiller, PhD The Gahcho Kué diamond camp of Mountain Province Diamonds and De Beers in Canada's Northwest Territories. Photo courtesy Mountain Province Diamonds Inc.

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