NEW MINES ROUNDUP — Fall opening planned for Ekati mine

Mining history will be made this fall with the official opening of the Ekati diamond mine in the Lac de Gras region of the Northwest Territories.

Operated and 51% owned by Broken Hill Proprietary (BHP-N) unit BHP Diamonds, Ekati will be the first diamond mine to open in Canada. Dia Met Minerals (DMM-T), which made the first diamond discoveries at Lac de Gras in the early 1990s, retains a 29% stake in the $700-million mine. Dia Met founder Charles Fipke and his former prospecting partner, Stewart Blusson, each hold a 10% interest.

The open-pit mine will exploit five kimberlite pipes, which contain reserves totalling 65.9 million tonnes at an average grade of 1.09 carats per tonne, equivalent to 72.2 million contained carats. The diamonds are valued at an average of US$84 per carat.

Ekati is expected to produce 3 to 4 million carats per year, roughly 3% of total world production, and generate annual revenue of $500 million. Current reserves will allow mining for almost 20 years, though operations may continue beyond that as other known kimberlites are explored and developed.