Dominion Diamond’s (TSX: DDC; NYSE: DDC) prefeasibility study (PFS) for the Jay kimberlite pipe deposit shows it could add 11 years to its Ekati diamond mine in the Northwest Territories.
Given its size and high grade, the Jay pipe is the most important undeveloped deposit at the mine. It is Ekati’s “primary life of mine extension opportunity,” BMO analyst Edward Sterck writes.
Located in the Lac de Gras region, the company owns 88.9% of the Core zone – comprising the Ekati mine and other permitted kimberlite pipes – as well as a 65.3% interest in the Buffer zone, an adjacent areas hosting prospective kimberlites, such as the Jay and Lynx kimberlite pipes.
The PFS envisioned developing Jay as a stand-alone open pit operation with an initial start-up cost of US$657 million. Once ramped up, Jay will deliver 4.3 million dry tonnes a year to the existing processing plant, starting after the projected closure of the Ekati mine in 2020.
Read the complete article at NorthernMiner.com/news/jay-pipe