Dominion Diamond Hits Milestone with Jay Kimberlite Prefeasibility

Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) released a prefeasibility study for the Jay kimberlite pipe deposit, which is located within the Northwest Territories-based Buffer Zone joint venture property.

As quoted in the press release:

Jay is the most significant undeveloped deposit at the Ekati Diamond Mine due to its large size and high grade. Jay is located beneath Lac du Sauvage, a moderate sized lake north of Lac de Gras, and is approximately 1.2 km from the shoreline. The Jay pipe is approximately 7 km to the northeast of the Misery Pit and related infrastructure, and 30km to the southeast of the main Ekati mine infrastructure.

Highlights include:

Mined waste		182.1 million tonnes
Mined ore		45.6 million tonnes
Strip ratio		3.99
Recovered carats		84.6 million carats
Recovered grade		1.9 carats per tonne
Initial development capital		US$657 million1
Pre-stripping capital		US$33 million1
Sustaining capital		US$148 million1
Average diamond price		US$86 per carat2
Pre-tax NPV		US$1,127 million
Post-tax NPV		US$610 million3
Real discount rate		7%
Mine operational life		11 years
Average total operating cost per tonne processed		$75 per tonne4
Pre-tax IRR		21%
Post-tax IRR		16%3

Brendan Bell, acting CEO of Dominion, commented:

Completing this pre-feasibility study is an important milestone for Jay, a project that we hope will be a significant growth opportunity for the company and a long-term pillar of the Northwest Territories economy.

Click here to read the full Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) press release.