DAILY NEWS Aug 20, 2012 4:58 PM - 0 comments

DIAMOND MINING: Diavik life-of-mine plan updated

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NORTHWEST TERRITORIES – The plans for the Diavik diamond mine near Lac de Gras are available, including anticipated annual production by pipe, operating costs and capital costs through 2023. The mine is a joint venture of Rio Tinto (60%) and Toronto’s Harry Winston Diamond Corp (40%).

The plan makes certain assumptions, notably the development of the A-21 kimberlite pipe that is the subject of a detailed preliminary assessment and advanced engineering. Development will be approved in phases, and if it goes forward as outlined, the first ore would be delivered to the recovery plant in 2017.

Using a real discount rate of 7% and real diamond price escalation of 2% per annum, the updated life-of-mine plan gives an estimated net present value of approximately $2.6 billion (including all reserves and resources), or approximately $2.1 billion based only on proven and probable reserves.

Full details about the operation of the Diavik diamond mine are available at Diavik.ca.

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