Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the
“Company” or “Dominion”) reports Diavik Diamond Mine production
results for the first calendar quarter of 2016:
Diavik Diamond Mine Production (100%
basis)
Q1 2016 Q4 2015
Q3 2015 Q2 2015
Q1 2015 Q4 2014 Q3
2014 Q2 2014
Tonnes processed(millions)
0.56 0.46 0.48 0.56 0.48 0.51 0.56 0.62
Carats Recovered(millions)
1.88 1.50 1.27 2.14 1.50 1.54 1.67 2.15
Processing volumes in the first calendar quarter of 2016 were
17% higher than in the same quarter of the prior year due to
greater ore availability as a result of higher mining rates and
availability of stockpiled ore.
Diamonds recovered in the first calendar quarter were 26% higher
than in the same quarter of the prior year reflecting higher
processing volumes and a higher recovered grade.
The development of the A-21 pipe continues to progress according
to plan.
A new mine plan and budget for calendar 2016
has been approved by Rio Tinto plc and the Company.
Run of Mine Production – Calendar 2016
Diavik Diamond Mine (100%
basis)
Tonnes Mined(millions)
Tonnes Processed(millions)
Carats(millions) Mine Plan for Calendar 2016 2.1 2.1
7.0
Mining activities will be exclusively
underground and ore will be sourced from the following kimberlite
pipes in the approximate amounts noted below:
Diavik Kimberlite Pipes (100% basis) Tonnes
Processed(millions) A-154 South 0.5 A-154 North 0.7
A-418 0.9
In addition to the 7.0 million carats produced from run of mine
ore, there will be a small amount of 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 that is
planned to be processed during calendar 2016 would produce 0.1
million carats from COR.
The aforementioned mine plan for the Diavik Diamond
Mine was prepared and verified by Diavik Diamond Mines (2012)
Inc. (“DDMI”), operator of the Diavik Diamond Mine, under the
supervision of Calvin Yip, P. Eng., Principal Advisor, Strategic
Planning of DDMI, and a Qualified Person within the meaning of
National Instrument 43-101 of the Canadian Securities
Administrators.
Diavik Diamond Mine Production 40%
basis
For the three months ended March 31, 2016 For the
three months ended March 31, 2015 Pipe Ore Processed(000s
tonnes) Carats(000s) Grade(carats/tonne) Ore
Processed(000s tonnes) Carats(000s)
Grade(carats/tonne) A-154 South 49 142 2.91 44 172 3.88 A-154 North
71 166 2.33 73 134 1.83 A-418 102 430 4.21 73 268 3.69 COR 1 16 - 1
25 – Total 223 754 3.32 (a) 191 599 3.02(a)
(a) Grade has been adjusted to exclude
COR
PricingBased on the Company’s sales during the first
calendar quarter of 2016 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.
Diavik Ore Type March 2016 Average Price per Carat
(in US dollars)
A-154 South $130 A-154 North $175 A-418 $95 COR $50
Forward-Looking InformationCertain
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 plan for the Diavik Diamond Mine; mining,
production, construction and exploration activities at the Diavik
Diamond Mine; mining methods; required operating and capital costs;
labour and fuel costs; currency exchange rates; world and US
economic conditions; future diamond prices; and the level of
worldwide diamond production. 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, variations in mineral resource and mineral
reserve estimates, grade estimates or expected recovery rates,
failure of plant, equipment or processes to operate as anticipated,
risks resulting from the Eurozone financial crisis, risks
associated with regulatory requirements and the ability to obtain
all necessary regulatory approvals, modifications to existing
practices so as to comply with any future permit conditions that
may be imposed by regulators, delays in obtaining regulatory
approvals and lease renewals, 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.
About Dominion Diamond CorporationDominion Diamond
Corporation is the world’s third largest producer of rough diamonds
by value. Both of its production assets are located in the low
political risk environment of the Northwest Territories in Canada
where the Company also has its head office. The Company is well
capitalized and has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of
the Diavik Diamond Mine. Between the two mining operations,
diamonds are currently produced from a number of separate
kimberlite pipes providing a diversity of diamond supply as well as
reduced operational risk. It supplies premium rough diamond
assortments to the global market through its sorting and selling
operations in Canada, Belgium and India.
For more information, please visit
www.ddcorp.ca
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version on businesswire.com: http://www.businesswire.com/news/home/20160418006743/en/
Dominion Diamond CorporationMr. Richard Chetwode, +44 (0)
7720-970-762Vice President, Corporate
Developmentrchetwode@ddcorp.caorMs. Kelley Stamm,
416-205-4380Manager, Investor Relationskstamm@ddcorp.ca