Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) reports Diavik Diamond Mine production results for the fourth calendar quarter of 2016:
Diavik Diamond Mine Production (100% basis)
Full | Full | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||
Tonnes Processed (millions) | 2.21 | 1.98 | 0.54 | 0.58 | 0.54 | 0.56 | 0.46 | 0.48 | 0.56 | 0.48 | ||||||||||
Carats Recovered (millions) | 6.66 | 6.41 | 1.65 | 1.54 | 1.58 | 1.88 | 1.50 | 1.27 | 2.14 | 1.50 |
Note: Totals may not add up due to rounding
Processing volumes in the fourth calendar quarter of 2016 were 16% higher than in the same quarter of the prior year due to the extended planned maintenance shutdown in the processing plant during the fourth quarter of calendar 2015.
Diamonds recovered in the fourth calendar quarter of 2016 were 10% higher than in the same quarter of the prior year, reflecting higher processing volumes that were partly offset by lower recovered grade.
Diamonds recovered in calendar 2016 of 6.7 million carats were 4% higher than in calendar 2015, but 4% lower than the revised calendar 2016 plan of 6.9 million carats. Lower-than-expected diamond recovery reflected lower grades due to underground dilution, which resulted from granite sloughing from the walls of the open pit.
The completion of A-21 dike construction and the start of dewatering are expected during calendar 2017, in accordance with the project plan.
A new mine plan and budget for calendar 2017 is under review by Rio Tinto plc and the Company.
Run of Mine Production – Calendar 2017 Diavik Diamond Mine (100% basis) | Tonnes Mined | Tonnes Processed (millions) | Carats (millions) | |||
Preliminary Mine Plan for Calendar 2017 | 2.1 - 2.3 | 2.0 - 2.2 | 7.1 - 7.6 |
Mining activities will be exclusively underground. Processed ore will be sourced from the following kimberlite pipes in the approximate proportions noted below:
Diavik Kimberlite Pipes | Percentage of Tonnes Processed | |
A-154 South | 20% | |
A-154 North | 35% | |
A-418 | 45% |
Production from Coarse Ore Rejects (“COR”) is expected to be negligible in 2017. Production from COR is not included in the Company’s ore reserves, and is therefore incremental.
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 December 31, 2016 | For the three months ended December 31, 2015 | |||||||||||
Pipe |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) | ||||||
A-154 South | 54 | 147 | 2.73 | 55 | 202 | 3.66 | ||||||
A-154 North | 67 | 169 | 2.54 | 46 | 100 | 2.18 | ||||||
A-418 | 95 | 340 | 3.57 | 84 | 290 | 3.44 | ||||||
COR | - | 4 | - | - | 6 | - | ||||||
Total | 216 | 660 | 3.04(a) | 185 | 598 | 3.19(a) |
For the twelve months ended December 31, 2016 | For the twelve months ended December 31, 2015 | |||||||||||
Pipe |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) |
Ore Processed (000s tonnes) |
Carats (000s) |
Grade (carats/tonne) | ||||||
A-154 South | 207 | 583 | 2.81 | 210 | 760 | 3.61 | ||||||
A-154 North | 281 | 639 | 2.27 | 253 | 541 | 2.14 | ||||||
A-418 | 396 | 1,407 | 3.56 | 328 | 1,186 | 3.62 | ||||||
COR | 2 | 34 | - | 3 | 75 | - | ||||||
Total | 885 | 2,663 | 2.97(a) | 794 | 2,562 | 3.14(a) |
(a) Average grade, adjusted to exclude COR
Note: Totals may not add
up due to rounding
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;
mining methods; 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 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 the world’s third largest producer of rough diamonds by
value. Both of its production assets are located in the low political
risk environment of the Northwest Territories in Canada where the
Company also has its head office. The Company is well capitalized and
has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of the Diavik Diamond Mine. Between the two mining operations, diamonds are currently produced from a number of separate kimberlite pipes providing a diversity of diamond supply as well as reduced operational risk. It supplies premium rough diamond assortments to the global market through its sorting and selling operations in Canada, Belgium and India.
For more information, please visit www.ddcorp.ca
View source version on businesswire.com: http://www.businesswire.com/news/home/20170116005757/en/
Contacts:
Jacqueline Allison, 416-205-4371
Vice-President,
Investor Relations
jacqueline.allison@ddcorp.ca