Issue link: http://resourceworld.uberflip.com/i/712968
a u g u s t / s e p t e m b e r 2 0 1 6 www.resourceworld.com 51 11054_GNWT_ITI_4C_RESOURCE_WORLD_1/2PG_ISLAND_FINAL Canada's Northwest Territories is home to world-class resources. Come and see for yourself. • New incentive programs to encourage mineral finds • Government pathfinder positions to guide explorers through the regulatory process • New investments in highways, winter roads and power • Robust mine training programs for northern residents • Mineral Development Strategy to ensure continued development of mineral resources NWTGEOSCIENCE.CA E-mail: ntgs@gov.nt.ca T: 867-767-9211 Ext.63469 NWTMINING.COM E-mail: mining@gov.nt.ca T: 867-767-9209 NWTPETROLEUM.COM E-mail: petroleum@gov.nt.ca T: 867-777-7475 miNiNg Dominion Diamond to develop Jay diamond project B ased on a positive feasibility study, revised project schedule and life-of- mine plan, Dominion Diamond Corp. [DDC-TSX, NYSE] will go ahead with the development of the Jay diamond proj- ect about 300 km northeast of Yellowknife, Northwest Territories. The company has an 88.9% interest in the Ekati Mine and an indirect 40% interest in the nearby Diavik Mine (Rio Tinto plc 60% [RIO-NYSE, ASX, London]). The Jay Project is within the 58.8%- owned nearby Buffer Zone joint venture property. The base-case post-tax net pres- ent value at 100% share is $398 million with an internal rate of return of 15.6%. At Dominion's share of both the Buffer Zone and 80%-owned Core Zone joint ven- tures, the project base-case, post-tax NPV is $278-million with an IRR of 16.7%. Jay will be able to use existing Ekati Mine infrastructure and has total development capital cost of $647 million. Development is expected to be financed from existing cash and internal cash flow. This will extend mine life to calendar 2033 and will open up further development opportunities. Diamond processing will begin in calen- dar 2022, which positions the project well to take advantage of a favourable supply- demand outlook for diamonds, particularly in the lower price segment. Brendan Bell, CEO, stated, "The Jay fea- sibility study has confirmed the economic and technical viability of the large-scale, high-grade Jay Project, which is the most significant undeveloped deposit at the Ekati Mine. With a revised project schedule and updated mine plan, this positive feasibility study sets out a clear long-term plan for Ekati. We are very confident in the outlook for the diamond market and believe the mine life extension, provided by Jay, posi- tions us well for the future. While work remains in order to complete project per- mitting, and to identify optimization and cost-reduction opportunities as we build Jay, we are very pleased with the results." Dominion Diamond recently ran a suc- cessful production trial for the Misery Main kimberlite, part of the Ekati Mine complex, resulting in the recovery of approximately 130,000 carats. The stones were sorted and valued with the com- pany's average market price estimated at $72 per carat, which includes the impact of the company's strategy for liberation of additional small diamonds. The Misery Main hosts the highest value ore body on the Ekati property. On June 23, there was a fire at the Ekati process plant. It is estimated that repairs will take about three months from the date of the fire with the cost of repairs to be approxi- mately CDN $25 million. Operating costs are being reduced and some capital costs will be deferred during the plant down- time. Mining continues at the higher value Misery open pit and Koala underground with Pigeon and Lynx mining suspended. n