The pre-feasibility study updates certain key economic and technical assumptions regarding the Sable Project from the preliminary economic assessment ("PEA") disclosed in September 2015.
The Sable PFS evaluated the development of the Sable pipe as an incremental development opportunity of the Jay Project, and the NPV calculation for the Sable Project represents the Company’s share of the incremental NPV. This analysis includes the positive cash flow effects of the Sable Project, while also factoring in a deferral of Jay ore processing and additional years of fixed operating costs.
Incorporating production from Sable into the Jay Project will keep the existing Ekati process plant at its full capacity until 2033 (with Sable processing ending in 2027). Sable’s higher value ore will allow for optimal mine sequencing and operational flexibility to maximize the value of the Ekati operation.
The Sable pipe is located beneath Sable Lake, 17 kilometres north-northwest of the existing Ekati mine infrastructure, and is fully permitted under existing Land Use Permits, a Water License, and a Fisheries Act Authorization.
Dominion compiled and prepared the Sable PFS with the assistance of its consultant Peter Ravenscroft, FAusIMM, of Burgundy Mining Advisors Ltd. Kleingeld, Young and Partners ("KYP") provided diamond revenue estimates at 1.0 mm and 0.5 mm slot screen bottom cut-offs.
Dominion 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.
