NORTHWEST TERRITORIES – Calgary-based Dominion Diamond Corp. has received the results of a preliminary economic assessment for an underground diamond mine below the mined our Fox pit at the Ekati project near Lac des Gras.
The Fox Deep development involves incline block caving. (Credit: Dominion Diamond)
The PEA says the Fox Deep project should be developed for incline block caving. It would have an after tax net present value of US$187 million (7% discount) and an internal rate of return of 23%. The study was based on processing 31.1 million tonnes and recovering 11.0 carats from the deposit over the life of the project.
Initial development carries a capex of US$628 million plus sustaining capital of US$192 million and total operating expenses of US$1.4 billion. Fox Deep will extend the life of the Ekati project to 2042 from fiscal 2035 (including the recently approved Misery Deep project). The pre-feasibility study is underway and will be completed late in fiscal 2018.
As of Jan. 31, 20017, Dominion estimated the indicated resource at 45.6 million tonnes and 16.5 million carats. That is a healthy increase from the previous estimates of 35.2 million tonnes and 11.6 million carats.
Additional details from the Fox Deep PEA can be found in the Sept. 6, 2017, news release posted at www.DDcorp.ca.