Dominion Diamond Corporation  in  an update on the progress of a feasibility study  (FS) on the Jay kimberlite pipe deposit said that it  has been determined that “it can maintain continuous production at Ekati without starting major construction at Jay this year, and as a result will adjust the Jay Project schedule to reflect this change”.

The Jay kimberlite is located within the Buffer Zone Joint Venture property in Canada’s Northwest Territories, in which the Company holds a majority interest.   

“The initial design basis for the Jay FS had assumed the commencement of major construction this year,” Dominion stated. “Changes to the Ekati mine plan have, however, made feasible the delivery of a continuous ore supply to the Ekati processing plant that allows further optimisation of the Jay Project.”

The changes referred to include the availability of Sable ore, deepening of the Koala underground, and the continued successful trial of a lower throughput in the processing plant as a tool to increase recovery, the Company explained.  Moreover, Dominion is of the opinion that  delaying the use of the Misery Pit as a water management facility would allow more time for mining below the currently planned open pit. 

The Company will be  completing the Jay FS based on a revised development schedule.  Dominion announced: “The new schedule assumes that the construction of an all-season access road to the shoreline of Lac du Sauvage would occur in calendar year 2017, followed by construction of the water retention dike and associated infrastructure in 2018 to 2020, with dike instrumentation, dewatering and the start of pre-stripping in 2021, and mining and processing of Jay kimberlite by late 2022.”
 
Located beneath Lac du Sauvage, a  lake of moderate size north of Lac de Gras, Jay is considered “the most significant undeveloped deposit at the Ekati Diamond Mine due to its large size and high grade”.   

Brendan Bell, Chief Executive Officer, commented: “We are very pleased with the progress of the Jay Feasibility Study. The changes we have made to the Ekati mine plan will allow us to maintain continuous feed to the Ekati processing plant, even with an extended timeline for commencing construction. We are also excited about the possibility of additional mining below the currently planned Misery open pit. The extra time will allow us to further advance Jay project permitting and to make aggressive efforts to reduce costs at the Ekati Mine.”