NEW MINES ROUNDUP — Diavik mine proposal moves forward

With more than $80 million spent to date on environmental and technical studies, Aber Resources (ABZ-T) and Diavik Diamond Mines have submitted a mining proposal for their Diavik project 300 km northeast of Yellowknife, N.W.T.

Aber holds 40% of the project, while operator Diavik, a division of Rio Tinto (RTP-N), holds the remaining 60% interest.

The mining plan includes four kimberlite pipes and the construction of a 2-million-tonne-per-year processing plant. The open-pit operation is expected to produce 6 to 8 million carats of diamonds per year. Underground production will begin in about the fifteenth year of operation; the switch will reduce annual production to about 3 to 4 million carats. The total mine life will extend beyond two decades.

At last report, resources at Diavik stood at 37 million tonnes in the A-418, A-154 South, A-154 North and A-21 pipes. The resource base comprises an estimated 123 million carats, of which 104 million carats (83%) are classed as minable reserves. The average diamond value estimate of US$56 per carat for all pipes is an average weighted by the minable carats in each pipe.

Capital costs for the mine are pegged at about $875 million. If all goes as planned, production would begin in the year 2000 or 2001.