De Beers has given the official go-ahead for construction of its first mine outside of Africa. The Snap Lake mine in the N.W.T. will also be the diamond giant’s first to target a kimberlite dyke.
The latest cost estimate for construction is $636 million, up from the previous figure of $625 million owing to higher labour and material costs.
The mine, 220 km northeast of Yellowknife, is slated to begin producing in 2007, with full production of 1.5 million carats per year slated for 2008. The mine has a lifespan of around 20 years.
De Beers was awarded the final permit required to build the mine last year after a long and exhaustive regulatory process. It has also negotiated Impact Benefit Agreements with four local native groups.
The mine will employ around 450 people during construction; the workforce will grow to 550 during production.
At last count, Snap Lake’s minable resources totalled 18.3 million tonnes grading 1.46 carats per tonne, valued at US$109 per carat.
Snap Lake will also be Canada’s first fully underground diamond mine.
Elsewhere in the N.W.T., De Beers is active at its 60%-owned advanced Gahcho Ku exploration project. The project is also held 36% by Mountain Province Diamonds (MPV-T) and 4% by Camphor Ventures (CFV-V).
In Ontario, the company is developing its Victor project, in the James Bay Lowlands. The company is also active at the Fort la Corne joint venture in Saskatchewan, where a $25.6-million work program is under way. That joint venture is owned 42.2% by De Beers, 42.2% by Kensington Resources (KRT-V), and 5.5% by Cameco (CCO-T), with a 10% carried interest held by UEM.
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