Canada continues to consolidate its position as the world’s third-largest producer of diamonds by value. In a recent article on Canada’s bright present – and future – in the diamond business, Rough & Polished correspondent Abraham Dayan delved deep into some of the Canadian projects expected to keep the diamond business growing in the part of the world.
Canada’s growing gem domination rests on one region of the country: the Northwest Territories, and Lac de Gras in particular. There, there are currently two large diamond-producing mines, Ekati and Diavik, with a third – Gahcho Kue – expected to begin production in 2017. Gahcho Kue, a joint venture between De Beers Canada and Mountain Province Diamonds, was commissioned in August 2016, and remains on track to reach full commercial operation in the first quarter of 2017. The project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4 million tons grading 1.57 carats per ton for total diamond content of 55.5 million carats. It is expected to produce an average of 4.5-million carats a year over a 12-year mine life.
Of the two Lac de Gras mines, Ekati, owned mainly by Dominion Diamond Corporation, has about five years of life expectancy left, and the development of the Jay deposit could potentially add another 11 years. Up until now, Ekati has produced more than 40 million carats.
Diavik, a 60/40 Rio Tinto-Dominion joint venture, could last to 2023 with the addition of a fourth pipe. The mine is currently transforming into an underground mining, and the life span of the mine is expected to be 16 to 22 years from its opening in 2003.
Alongside already producing mines, there are several exploration projects in different stages of development. One is the Kennady North diamond project. In late August, Kennady Diamonds announced that it has acquired six mining leases adjoining the southern border of the mine. The new leases comprise roughly 4,233 hectares, bringing the total land position for the Kennady North Project to over 71,000 hectares. Of particular interest on the new leases is the “Blob Lake” target, located in an unnamed lake five kilometers southwest of Gahcho Kue, the mining firm said.
In addition, Arctic Star Exploration has announced plans to explore its 54,000-hectare T-Rex property in Lac de Gras. Previous exploration has found over a dozen kimberlites, most of them diamondiferous.
Another project in the works is located in Munn Lake. The project, owned by Zimtu Capital, is already being explored. According to Dayan, Zimtu now has a crew sampling kimberlites to validate previous sampling.
So, despite exceptionally difficult mining conditions and high explorations costs, the future for the Canadian diamond mining industry, shines bright.
