DIAMONDS: Dominion posts Ekati bond, files Jay plans

NORTHWEST TERRITORIES – Dominion Diamond Corp. of Toronto has posted surety bonds in the amount of approximately $253.5 million to reclaim the Ekati mine site at Lac de Gras as required by the terms of the Ekati water licence. The bonds were placed with the territorial government.

Upon receipt of the bonds, the government returned letters of credit worth $82.6 million that the company previously posted in respect to its reclamation obligation. The government continues to hold additional letters of credit in the amount of $42.7 million.

Separately, Dominion filed a developer's assessment report with the Mackenzie Valley Environmental Impact Review Board for the Jay kimberlite pipe at the Ekati mine. Development of the Jay pipe will extend the life of the Ekati mine to 2030, more than 10 years beyond the current closure date. Environmental hearings on the proposal are expected next year with a ministerial decision late in 2015.

The Jay pipe lies in the southeast part of the Ekati property, about 25 km southeast of the processing plant. The company is proposing to build a 5-km-long, horse shoe shaped dyke into Lac du Savage to isolate the portion above the Jay pipe. The timeline includes a construction start in the summer of 2016 and completion in 2019. Dewatering and pre-stripping will begin in 2019, and open pit mining in 2020.

Please see DDcorp.ca for more information about Canada's first diamond mine.