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Dominion Diamond files applications to start mining Ekati’s Lynx kimberlite

17th September 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian precious-gems miner Dominion Diamond Corp has filed an application with the Wek'éezhii Land and Water Board requesting a land use permit and water licence to enable it to start mining the Lynx kimberlite pipe at the Ekati diamond mine, in the Northwest Territories.

The Lynx kimberlite pipe is located in the south-eastern portion of the mine property, underlying a small lake about 30 km from the main facilities and about 3 km to the south-west of the active Misery pit, in the Lac de Gras watershed. The project is in an area that forms part of the Buffer Zone joint venture (JV), in which the company acquired a 58.8% interest from mining major BHP Billiton earlier this year. Arm’s length third parties hold the remaining interest in the JV.

Dominion on Monday said the Lynx project represented an extension of the Misery operations, requiring little new infrastructure.

Developing the Lynx project would entail draining a small lake, as is customary for the kimberlite pipes that have been mined at the Ekati mine, and developing an openpit mine with a short access road.

All other necessary facilities, such as the process plant and camp, are already present, and it is expected that the instruments of environmental management and monitoring currently in use at the Ekati mine would be expanded to include all aspects of the Lynx project.

Based on the scope of the proposed Lynx project, as well as the fact that the proposed project activities have been previously assessed, it was expected that the necessary project approvals would be complete in a few months.

The Lynx kimberlite pipe is estimated to have 1.3-million tonnes of indicated resource at 0.8 ct/t and 100 000 t of inferred resource at 0.8 ct/t, on a 100% basis as at December 31, 2012.

The company had modelled the rough diamond price for the Lynx diamonds at about $257/ct.

Edited by Creamer Media Reporter

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