Jay Project to Extend Ekati Life Past 2020
January 27, 15
The Ekati Diamond Mine
(IDEX Online News) – Dominion Diamond Corporation today (Tuesday) announced the results of a pre-feasibility study (PFS) on the Jay kimberlite pipe deposit located within the Buffer Zone Joint Venture property in Canada’s Northwest Territories.
The PFS evaluated the development of Jay as a stand-alone open pit operation that will supply ore to the existing process plant at its full capacity of approximately 4.3 million dry metric tons per annum for approximately 11 years beyond the current projected closure of the Ekati Diamond Mine in 2020.
This will require construction of a water retention dike encircling the pipe, allowing the isolated area to be dewatered ahead of the start of pre-stripping and mining operations.
“Completing this pre-feasibility study is an important milestone for Jay, a project that we hope will be a significant growth opportunity for the company and a long-term pillar of the Northwest Territories economy,” said Brendan Bell, acting chief executive officer.
Jay is the most significant undeveloped deposit at the Ekati diamond mine due to its large size and high grade. The Jay pipe is approximately 7 kilometers to the northeast of the Misery Pit and related infrastructure, and 30 kilometers to the southeast of the main Ekati mine infrastructure. It is located beneath Lac du Sauvage, a moderate-sized lake north of Lac de Gras, approximately 1.2 kilometers from the shoreline.
Construction of Jay is due to start in the second half of 2016, dewatering of the area isolated by the dike and pre-stripping in 2019 and mining of the Jay pipe and processing of kimberlite beginning in 2020. In 2020, the project would supply approximately half the ore to the process plant as Jay mining activities ramp up and the existing ore sources are exhausted.
The Ekati diamond mine consists of the Core Zone (in which Dominion owns an 88.9 percent interest), which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone (in which the Company owns a 65.3 percent interest), an adjacent area hosting kimberlite pipes having both development and exploration potential, including the Jay kimberlite pipe as well as the Lynx kimberlite pipe.
Dominion compiled and prepared the Jay PFS with the assistance of its consultants Golder Associates Ltd. and Peter Ravenscroft, FAusIMM, of Burgundy Mining Advisors Ltd.