Dominion Diamond Corporation, through an agreement with Archon Minerals Limited – which was its joint venture partner at the Ekati Buffer Zone – has now consolidated its interest in the Buffer Zone to 100%. Under the agreement, Archon’s interest has been transferred to the Company in lieu of “a royalty equal to 2.3% of all future gross revenue from diamonds produced from the Buffer Zone”.

Dominion continues to have an 88.9% ownership interest of 88.9% in the Core Zone Joint Venture at the Ekati Diamond Mine.

Jim Gowans, Chairman of the Board of Directors of Dominion commented: “We are delighted to have reached this mutually beneficial agreement with Archon. For both parties, the transaction provides ownership and funding certainty for the large scale Jay project, which is currently in the final stages of permitting. It also provides significantly more exposure for Dominion’s shareholders to further discoveries on this highly prospective land package.”

Last year, on July 6, 2016, Dominion had announced the results of a  feasibility study of the Jay project, “indicating positive project economics with a post-tax net present value of  $ 398 million and an internal rate of return of 15.6%”, the Company noted.

Meanwhile, commercial mining activities at the Lynx kimberlite pipe in the Buffer Zone commenced on April 1, 2017. The Lynx pipe is forecast to produce approximately 5% of tonnes processed and carats recovered at the Ekati Diamond Mine for the fiscal year ending January 31, 2018.

“The Buffer Zone contains 106 mining leases covering 89,184 hectares, and is contiguous with the Core Zone Joint Venture at the Ekati Diamond Mine,” Dominion stated. “Of the 150 kimberlite pipes discovered to date at the Ekati Diamond Mine, 38 are in the Buffer Zone. The Company plans to spend approximately CAD$ 11 million on exploration in the Lac de Gras region for the fiscal year ending January 31, 2018.”

Meanwhile, a few days earlier, Dominion had reported that the Wek’èezhìi Land and Water Board (WLWB) had amended the Type A Water Licence for the Ekati Diamond Mine to include the Jay project; and had also recommended  that the amended Water Licence be approved by the Minister of Environment and Natural Resources, Government of the Northwest Territories.

“We appreciate the work of the WLWB in continuing to advance the Jay project through the permitting process, and we look forward to final Ministerial approval and receipt of the Water Licence,” Jim Gowans, Chairman of the Board of Directors of Dominion had commented at the time. “The Jay project is a platform for future growth at Ekati, extending the mine life to 2033, and is part of our overall growth pipeline that will deliver benefits to our many stakeholders.”