Dominion Diamond Corporation today reported that diamond production at the Diavik Diamond Mine (in which it holds a 40% share) rose by 4% to 6.66 mn carats as against 6.41 mn cts a year ago, though the figure was 4% lower than the revised calendar 2016 plan of 6.9 million carats.

A statement from the Company attributed the decline to a “lower-than-expected diamond recovery (which) reflected lower grades due to underground dilution, which resulted from granite sloughing from the walls of the open pit”.

The Company added that processing volumes in Q4 2016 were 16% higher than in the same quarter of the prior year due to the extended planned maintenance shutdown in the processing plant during Q4 2015.

Diamonds recovered in the fourth calendar quarter of 2016 were 10% higher than in the same quarter of the prior year, reflecting higher processing volumes that were partly offset by lower recovered grade.

Dominion also said that the completion of A-21 dike construction and the start of dewatering are expected during calendar 2017, in accordance with the project plan. A new mine plan and budget for calendar 2017 is under review.

During this year, mining activities will be exclusively underground, it added.