De Beers Canada Exploration’s latest modelled revenue-per-carat estimates for the 5034 and Hearne diamond pipes on the AK claims in the Northwest Territories have come in lower than those reported for the 1999 bulk sample.
The average revenue per carat for the 5034 pipe is US$65.50 for the combined 1999 and 2001 parcels, compared with the adjusted US$69.30 value for the 1999 bulk sample. Similarly, the average revenue per carat for the Hearne pipe is US$63.30, compared with the adjusted US$71.50 value for the 1999 bulk sample.
De Beers re-valued the pipes based on August 2001 diamond prices. The drop in value reflects the drop in the rough diamond market during the same period. Prices for rough diamonds are off about 10% from 1999 values and have fallen about 20% over the past year.
In August, an initial desktop study indicated that a 15% increase in diamond revenue was needed to proceed to the feasibility stage. The study proposed open-pit mining on the 5034 and Hearne pipes, and for a high-grade zone in the top 140 metres of the Tuzo pipe.
De Beers intends to spend about $10 million on bulk sampling the 5034 and Hearne pipes this winter with an eye on recovering at least 2,000 carats from 8 to 10 large diameter drill holes (4-5 into each pipe).
De Beers Canada, a unit of Anglo American (AAUK-Q) holds a 51% interest in the property. The minority interests in AK are held by Mountain Province Diamonds (MPV-T), with 44.1%, and Camphor Ventures (CFV-V), with 4.9%. De Beers can earn up to a 60% interest in the property by advancing it to commercial production.
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