With construction 40% complete and progressing well, operator BHP Minerals reports that the NWT Diamonds project is expected to be completed on time and within budget.
The company has a 51% interest in the US$700-million mine project, with partner Dia Met Minerals (DMM-T) holding a 29% stake. The remainder is held privately.
At the end of July, BHP had spent $455 million on the project, including exploration. The partners recently identified 23 new kimberlites, raising to 100 the number found to date on the joint-venture lands north of Yellowknife, N.W.T.
Plans call for the mining of five kimberlite pipes — Panda, Misery, Koala, Sable and Fox — over a period of 17 years. The discovery of new pipes is expected to extend the life of the project.
The five pipes will be mined initially by open-pit methods, followed by underground mining at Panda and Koala. At last report, proven and probable reserves totalled 65.9 million tonnes grading 1.09 carats per tonne, with a diamond value averaging US$84 per carat.
The mine is targeted to produce roughly 4 million carats per year and annual revenue of the mine is estimated somewhere in the neighborhood of $400-500 million.
A marketing plan is expected to be in place by year-end. Commercial production is scheduled to begin in the fall of 1998.
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