Dominion Diamond Corporation (TSX:DDC) (NYSE:DDC) (the “Company”) reports Diavik Diamond Mine production results for the third calendar quarter of 2015:
Diavik Diamond Mine Production (100% basis)
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||||||||||
Tonnes processed (millions) | 0.48 | 0.56 | 0.48 | 0.51 | 0.56 | 0.62 | 0.59 | 0.54 | |||||||||
Carats Recovered (millions) | 1.27 | 2.14 | 1.50 | 1.54 | 1.67 | 2.15 | 1.87 | 2.07 |
Processing volumes in the third calendar quarter of 2015 were 15% lower than the same quarter of the prior year due to a combination of two factors. First, additional stockpile ore was available and processed during the comparable quarter of the prior year; this additional stockpile was fully exhausted in calendar 2014. Second, ore availability in the current quarter was slightly impacted by poor ground conditions at A-418 and A-154 North.
Diamonds recovered in the third calendar quarter were 24% lower than the same quarter of the prior year reflecting lower processing volumes and lower recovered grades from the A-154 South and A-418 pipes which was offset in part by increased production from coarse ore rejects (“COR”).
The development of the A-21 pipe continues to progress according to plan.
The Diavik Diamond Mine full-year production target (on a 100% basis) is expected to be approximately:
Run of Mine Production Diavik Diamond Mine (100% basis) | Tonnes Mined | Tonnes Processed (millions) | Carats (millions) | ||||
Mine Plan for Calendar 2015 | 2.0 | 2.0 | 6.8 |
Mining activities will be exclusively underground and ore will be sourced from the following kimberlite pipes in the approximate amounts noted below:
Diavik Kimberlite Pipes (100% basis) | Tonnes Processed (millions) | |
A-154 South | 0.5 | |
A-154 North | 0.7 | |
A-418 | 0.8 |
In addition to the 6.8 million carats produced from run of mine ore, there will be production from COR. This additional production is not included in the Company’s ore reserves, and is therefore incremental. Based on historical recovery rates, the tonnage of this material that is planned to be processed during calendar 2015 would produce 0.2 million carats from COR.
The aforementioned mine plan for the Diavik Diamond Mine was prepared and verified by Diavik Diamond Mines (2012) Inc. (“DDMI”), operator of the Diavik Diamond Mine, under the supervision of Calvin Yip, P. Eng., Principal Advisor, Strategic Planning of DDMI, and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
Diavik Diamond Mine Production 40% basis
For the three months ended September 30, 2015 | For the three months ended September 30, 2014 | ||||||||||||
Pipe |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) | |||||||
A-154 South | 55 | 145 | 2.64 | 52 | 189 | 3.62 | |||||||
A-154 North | 66 | 155 | 2.34 | 90 | 186 | 2.08 | |||||||
A-418 | 68 | 167 | 2.44 | 82 | 292 | 3.56 | |||||||
COR | 1 | 40 | - | 0.1 | 1 | - | |||||||
Total | 191 | 508 | 2.46(a) | 224 | 669 | 2.98(a) |
(a) Grade has been adjusted to exclude COR
For the nine months ended September 30, 2015 | For the nine months ended September 30, 2014 | ||||||||||||
Pipe |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) | |||||||
A-154 South | 155 | 559 | 3.61 | 156 | 584 | 3.76 | |||||||
A-154 North | 206 | 441 | 2.14 | 280 | 607 | 2.17 | |||||||
A-418 | 244 | 893 | 3.68 | 268 | 1,008 | 3.77 | |||||||
COR | 2 | 69 | - | 3 | 77 | - | |||||||
Total | 607 | 1,963 | 3.13(a) | 707 | 2,275 | 3.13(a) |
(a) Grade has been adjusted to exclude COR
Pricing
Based on the Company’s sales during the third
calendar quarter of 2015 and the current diamond recovery profile of the
Diavik processing plant, the Company has modeled the approximate rough
diamond price per carat for each of the ore types below.
Diavik Ore Type |
September 2015 Average Price per Carat
(in US dollars) | |
A-154 South | $125 | |
A-154 North | $165 | |
A-418 | $90 | |
COR | $45 |
Forward-Looking Information
Certain information
included herein, including information about mining activities and
estimated production from the Diavik Diamond Mine, constitutes
forward-looking information or statements within the meaning of
applicable securities laws. Forward-looking information is based on
certain factors and assumptions including, among other things, the
current mine plan for the Diavik Diamond Mine; mining, production,
construction and exploration activities at the Diavik Diamond Mine;
required operating and capital costs; labour and fuel costs; currency
exchange rates; world and US economic conditions; future diamond prices;
and the level of worldwide diamond production. Forward-looking
information is subject to certain factors, including risks and
uncertainties, which could cause actual results to differ materially
from what the Company currently expects. These factors include, among
other things, the uncertain nature of mining activities, including risks
associated with underground construction and mining operations, risks
associated with joint venture operations, including risks associated
with the inability to control the timing and scope of future capital
expenditures, the risk that the operator of the Diavik Diamond Mine may
make changes to the mine plan and other risks arising because of the
nature of joint venture activities, risks associated with the remote
location of and harsh climate at the Diavik Diamond Mine, variations in
mineral resource and mineral reserve estimates, grade estimates or
expected recovery rates, failure of plant, equipment or processes to
operate as anticipated, risks resulting from the Eurozone financial
crisis, risks associated with regulatory requirements and the ability to
obtain all necessary regulatory approvals, modifications to existing
practices so as to comply with any future permit conditions that may be
imposed by regulators, delays in obtaining regulatory approvals and
lease renewals, the risk of fluctuations in diamond prices and changes
in US and world economic conditions, the risk of fluctuations in the
Canadian/US dollar exchange rate and cash flow and liquidity risks.
Actual results may vary from the forward-looking information. Readers
are cautioned not to place undue importance on forward-looking
information, which speaks only as of the date of this disclosure, and
should not rely upon this information as of any other date. While the
Company may elect to, it is under no obligation and does not undertake
to, update or revise any forward-looking information, whether as a
result of new information, further events or otherwise at any particular
time, except as required by law. Additional information concerning
factors that may cause actual results to materially differ from those in
such forward-looking statements is contained in the Company's filings
with Canadian and United States securities regulatory authorities and
can be found at www.sedar.com
and www.sec.gov,
respectively.
About Dominion Diamond Corporation
Dominion Diamond
Corporation is a Canadian diamond mining company with ownership
interests in two major producing diamond mines. Both mines are located
in the low political risk environment of the Northwest Territories in
Canada.
The Company operates the Ekati Diamond Mine through its 88.9% ownership as well as a 65.3% ownership in the surrounding areas containing additional reserves and resources, and also owns 40% of the Diavik Diamond Mine. It supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and is the world’s third largest producer of rough diamonds by value. For more information, please visit www.ddcorp.ca
View source version on businesswire.com: http://www.businesswire.com/news/home/20151015006798/en/
Contacts:
Mr. Richard Chetwode, +44 (0)
7720-970-762
Vice President, Corporate Development
rchetwode@ddcorp.ca
or
Ms.
Kelley Stamm, (416) 205-4380
Manager, Investor Relations
kstamm@ddcorp.ca