NORTHWEST TERRITORIES – Dominion Diamond Corp. has completed the prefeasibility study for the Sable project 17 km north-northwest of the Ekati diamond mine near Lac de Gras, and the results outline a probable reserve containing 10.1 million ct of stones.
The initial development capital for Sable will be US$142 million. An expenditure of US$85 million will be needed for pre-stripping, and another US$19 million for sustaining capital. The kimberlite is estimated to contain 12.0 million probable tonnes that will yield a recovered grade of 0.8 ct per tonne. The mine would operate for 10 years and have a post-tax net present value (7% discount) of US$137 million and a post-tax internal rate of return of 16.2%.
Development of the Sable project would keep the Ekati recovery plant operating at full capacity until 2033. Production would begin in 2019 and cease in 2027. The property has indicated resources of 15.4 million tonnes grading 0.9 ct/t and inferred resources of 300,000 tonnes grading 0.9 ct/t recoverable by open pit mining.
The Sable kimberlite pipe is located within the Core zone joint venture, owned 90% by Dominion and 10% by Dr. Stewart Blusson, at the Ekati mine.
The 2015 Ekati technical report is posted on the Dominion website at www.DDCorp.ca/ .