Arctic Blue Diamonds, a Canadian diamond company based in the Northwest Territories, has secured an 89.7% interest in the WO Diamond Project in Canada.
This acquisition includes a 72.1% stake from Peregrine Diamonds, a subsidiary of De Beers Canada, and a 17.6% stake from Archon Minerals.
The financial terms of the acquisition were not revealed.
The project, which includes the DO27 kimberlite, is situated near the Diavik and Ekati Diamond Mines. It covers an area of 5,815ha across eight mining leases.
The DO27 kimberlite, one of Canada’s largest diamond-bearing formations, spans approximately 9ha beneath a shallow lake. In contrast, similar sites at the Diavik and Ekati mines measure less than 3ha.
According to Arctic Blue Diamonds, extensive exploration has been conducted at the site, including significant core and reverse circulation drilling efforts. Currently identified resources include 19.5 million tonnes of indicated mineral resource containing 18.2 million carats.
Deeper investigations suggest potential additional resources between 6.5 and 8.5 million tonnes with grades ranging from 0.8 to 1 carat per tonne, although further exploration is necessary to confirm these estimates.
Previous valuations by WWW International Diamond Consultants in 2006 and 2007 placed the average rough diamond price at $72 per carat in 2008. However, current projections indicate prices have risen to between $90 and $100 per carat.
The DO27 kimberlite is characterised by its soft and low-density ore, prompting Peregrine Diamonds to collaborate with AMEC Americas on developing an ore concentrate process. This washing technique separates fine particles below 1mm, retaining larger fractions for final processing at an external recovery facility.
Approximately 90% of the ore within the upper 60m is expected to be classified as fines upon washing, which aids in reducing transportation needs for further processing.
With the WO Project currently under care and maintenance, environmental and engineering studies will explore the feasibility of using Underwater Remote Mining (URM) technology. These assessments will examine opportunities for extracting high-grade diamond concentrate for external processing and potential future production activities.
Arctic Blue executive chair Patrick Evans said: “As some of the existing diamond mines approach the end of their economic lives, DO27 offers the opportunity to extend the life of the existing diamond plants by producing a very high-grade diamond concentrate of over 80 carats per tonne suitable for shipment to existing diamond recovery facilities, or alternatively to a purpose-built facility in Yellowknife.
“The extremely soft nature of the DO27 ore also opens the potential for the deployment of URM technology. Kimberlites with soft, low-density ore can be mined most efficiently using URM systems.”
