Development advances at Diavik mine

A second dyke is being built at the Diavik diamond mine, 300 km northeast of Yellowknife, N.W.T.

The mine is owned 60-40 by Rio Tinto (RTP-N), and Aber Diamond (ABZ-T).

The dyke represents the first phase of development of the A418 open pit, construction of which is expected to take 18 months and cost US$190 million.

The A418 pipe has a proven and probable reserve (both open pit and underground) of 8.7 million tonnes grading 3.2 carats per tonne.

In the first quarter, the mine produced 1.75 million carats from the A154 North and A154 South pipes.

At the end of last year, proven and probable reserves at Diavik totalled 29.8 million tonnes grading 3.2 carats per tonne, or 95.6 million carats. These reserves are contained in the A154 South, A154 North and A418 kimberlite pipes. A154 South accounted for almost half the reserve: 10.5 million tonnes grading 4.5 carats per tonne, or 46.7 million carats.

Previously the A21 kimberlite was also listed in the reserves; it is now considered to contain an indicated resource of 4.3 million tonnes grading 3.1 carats per tonne. More drilling will test this resource.

At the end of last year, A154 North had a proven and probable open-pit and underground reserve of 10.6 million tonnes grading 2 carats per tonne.

In 2004 the underground resource of the A154 North pipe became a reserve, following the valuation of a large parcel of diamonds at US$82 per carat (an earlier sample used in the feasibility study had been valued at US$33 per carat).

Diavik is a fly-in operation, though it is also accessible for 10 weeks by a seasonal ice road. From the end of February until early April the company used this road to transport 2,770 loads of supplies to the site. In addition to fuel, explosives and general freight, heavy equipment (including cranes, boats and dredges) was delivered.

The company is developing a ramp to sample several of the kimberlite bodies at depth and test ground and water conditions prior to underground mining.

Diavik has awarded the construction and engineering contracts for the A418 dike to the same contractors who built the dyke around the A154 pipe (Lac de Gras Constructors and Nishi-Khon SNC Lavalin).

Diavik employs about 750 people, most of whom live in the north.

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