DIAMONDS: Dominion offers maiden Leslie resource, Misery PFS, Fox Deep update

NORTHWEST TERRITORIES – Dominion Diamond Corp. of Toronto has lots of news from its Ekati diamond mine at Lac de Gras – a maiden resource for the Leslie pipe, a positive prefeasibility study for the Misery Deep project, and updates on the Fox Deep potential. [caption id="attachment_1003718526" align="alignleft" width="433"] A construction decision for the Misery Deep project at the Ekati diamond mine is due in June 2017. Credit: Dominion Diamond.[/caption] The Leslie kimberlite pipe was discovered in the summer of 1992 under a small lake between the Koala and Fox pipes. It has been bulk sampled but not previously included in resource estimates. The maiden inferred resource includes 50.8 million tonnes containing 16.3 million carats.  The pipe has a circular surface area of approximately 7.0 hectares. The Misery pipe is currently being mined by open pit, but the PFS indicates that underground development of the pipe would result in a positive cash flow. This project has the potential to expand the Ekati mine life to fiscal 2035 (Jan. 31, 2035) rather than fiscal 2034. Dominion is looking at recovering 1.8 million tonnes of kimberlite and 8.7 million carats of diamonds from probable reserves using sublevel retreat. Underground development would cost $94 million plus sustaining capital of $9 million. Production could begin during 2019. A construction decision will be made in June 2017. Dominion has updated the Fox Deep resource model with new data from last year’s reverse circulation drilling program. The indicated resource has increased to 45.6 million tonnes containing 16.5 million ct. Previously it stood at 35.2 million tonnes with 11.6 million carats. A prefeasibility study will be delivered by the end of fiscal 2018. Details of the complete Ekati exploration program are available at www.DDcorp.ca.