Dominion Diamond Corporation Reports Diavik Diamond Mine Second Calendar Quarter Production
The following excerpt is from the company's SEC filing
Processing volumes in the second calendar quarter were 17% higher than
compared to the same quarter of the prior year as a result of improvements in the mining rates as the underground ramp up progressed
throughout 2013 to full production from all three kimberlite pipes, and improvements in the availability and utilization of the
processing plant. The 38% increase in diamonds recovered in the second calendar quarter was the result of a combination of
higher realized grades in all three ore bodies, and a higher volume of ore processed.
The plan for tonnes processed includes material from both mining and stoc
Mining activities will be exclusively underground with approximately 0.7 million tonnes expected to be sourced from A-154 North,
approximately 0.5 million tonnes from A-154 South and approximately 0.8 million tonnes from A-418 kimberlite pipes. The 8%
increase in expected carat production from run of mine ore compared to the original mine plan results primarily from an increase
in ore processed as a result of improvements in the availability and utilization of the processing plant. In addition to the 6.5
million carats produced from run of mine ore there will be production from coarse ore rejects ("COR"). This additional
production is not included in the Company's ore reserves, and is therefore incremental. Based on historical recovery rates, the
tonnage of this material which is planned to be processed during calendar 2014 would have produced 0.3 million carats from COR.
Based on the Company's sales during the second calendar quarter of 2014 and the current diamond recovery profile of the Diavik
processing plant, the Company has modeled the approximate rough diamond price per carat for each of the ore types below.
The Diavik Diamond Mine reports production results to a December 31 year-end.
The Ekati Diamond Mine reports production results in line with the Company's fiscal year-end of January 31. It is the intention
of the Company that the Ekati Diamond Mine fiscal 2015 second quarter production report (covering the period from May 1, 2014,
to July 31, 2014) will be published in August 2014.
Certain information included herein, including information about mining activities and estimated production from the Diavik
Diamond Mine, constitutes forward-looking information or statements within the meaning of applicable securities laws. Forward-looking
information is based on certain factors and assumptions including, among other things, the current mine plans for the Diavik Diamond
Mine; mining, production, construction and exploration activities at the Diavik Diamond Mine; currency exchange rates; and world
and US economic conditions. Forward-looking information is subject to certain factors, including risks and uncertainties, which
could cause actual results to differ materially from what the Company currently expects. These factors include, among other things,
the uncertain nature of mining activities, including risks associated with underground construction and mining operations, risks
associated with joint venture operations, including risks associated with the inability to control the timing and scope of future
capital expenditures, the risk that the operator of the Diavik Diamond Mine may make changes to the mine plan and other risks arising
because of the nature of joint venture activities, risks associated with the remote location of and harsh climate at the Diavik
Diamond Mine, risks resulting from the Eurozone financial crisis, risks associated with regulatory requirements, the risk of fluctuations
in diamond prices and changes in US and world economic conditions, the risk of fluctuations in the Canadian/US dollar exchange
rate and cash flow and liquidity risks. Actual results may vary from the forward-looking information. Readers are cautioned not
to place undue importance on forward-looking information, which speaks only as of the date of this disclosure, and should not rely
upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to,
update or revise any forward-looking information, whether as a result of new information, further events or otherwise at any particular
time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from
those in such forward-looking statements is contained in the Company's filings with Canadian and United States securities regulatory
authorities and can be found at www.sedar.com and www.sec.gov, respectively.
The scientific and technical information contained in this press release has been prepared under the supervision of Mats Heimersson,
P. ENG, an employee of the Company and a Qualified Person within the meaning of National Instrument 43-101.
About Dominion Diamond Corporation
Dominion Diamond Corporation is a Canadian diamond mining company with ownership interests in two major producing
diamond mines. Both mines are located in the low political risk environment of the Northwest Territories in Canada.
The Company operates the Ekati Diamond Mine through its 80% ownership
as well as a 58.8% ownership in the surrounding areas containing additional resources, and also owns 40% of the Diavik Diamond
Mine. It supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and
is the world's third largest producer of rough diamonds by value.
The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here.
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