New Report Shows Longer Mine Life, Bigger Output At Diavik – by Albert Robinson ( – April 2, 2017)

(IDEX Online) – The mine life of the Diavik Diamond Mine has been extended to 2025 from 2023, there is an increase in carat production, growth in future revenues and cash flows, and maintenance of operating costs and capital expenditures at levels that are consistent with earlier forecasts, according to a new report published by the Dominion Diamond Corporation.

Dominion has recently been the target of a takeover bid and last week created a committee to look at potential strategic moves. The firm owns 40 percent of the Diavik mine and fully owns the Ekati mine, both of which are located in Canada’s North West Territories.

The report, entitled “Diavik Diamond Mine, Northwest Territories, Canada, NI 43-101 Technical Report”, was prepared by the operator of the Diavik mine, Diavik Diamond Mines (2012) Inc. (DDMI), a subsidiary of Rio Tinto plc.
The report includes an updated mineral reserves and mineral resources statement and an updated “reserves-only” life of mine plan. Dominion has a 40 percent interest in the Diavik mine with Rio Tinto plc owning the rest and operating the mine through DDMI. The report also says the mine has an after-tax net present value of approximately $2.6 billion at a 7 percent discount rate, based on the assumptions and analysis in the Technical Report.

The report adds that 46.0 million carats were recovered between 2017 and 2025, an increase of 6.3 million carats or 16 percent, from the previous estimate for the comparable period.There is forecast total revenue of approximately $9.0 billion, and total operating cash flow of approximately $3.7 billion between 2017 and 2025, an increase of 22 percent and 32 percent, respectively, from the previous estimates for the comparable period.

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