Dominion Diamond has announced positive results of a preliminary economic assessment (Sable PEA) of the Sable kimberlite pipe deposit located within the Core Zone Joint Venture property in Canada’s Northwest Territories, in which the company holds an 88.9% interest.
Sable is a fully-permitted undeveloped deposit on the Ekati property, with a rapid development timeline and potential capital and operating synergies with the Jay Project.
Sable and Jay could share haul trucks, loading equipment, and support equipment during development and operations. Combining Sable with Jay would also provide increased mine planning and processing flexibility.
The Sable pipe is located beneath Sable Lake, 17 kilometres north-northwest of the existing Ekati mine infrastructure.
The Sable Project will require construction of an access road, site infrastructure, and sedimentation pond allowing Sable Lake to be dewatered ahead of the start of pre-stripping operations, and is fully permitted under existing Land Use Permits, a Water License, and a Fisheries Act Authorization.
The Sable PEA evaluated the development of the Sable pipe concurrently with the Jay Project. Incorporating production from Sable into the previously announced Jay Project would supply ore to the existing Ekati process plant at its full capacity until 2033 (with Sable mining ending in 2027). Sable would provide an additional high value ore source for the Ekati mine, allowing for optimal mine sequencing and operational flexibility to maximize the value of the Ekati operation.
The Sable Project was evaluated as an incremental development opportunity together with the Jay Project, and does not change the previously estimated mineral reserves and resources of the Jay pipe.
The Sable PEA includes in its evaluation the results of a reverse-circulation drilling campaign conducted during the prior winter. A total of 8 holes were drilled at approximately 24 inches in diameter, for a total of 1,535 tonnes sampled. The Ekati Bulk Sample Plant processed the drill hole interval samples and a total of 1,210 carats were recovered at a 1.0mm bottom cut-off.
The Company utilized quality control and assurance protocols for each sampling interval and data verification was undertaken on all geological, geotechnical, survey and bulk density data collected. Security procedures were established to ensure limited access to the sample collection areas and sample plant tailings samples were collected for future audit purposes in verifying the recovery process. Dominion compiled and prepared the Sable PEA with the assistance of its consultants Kleingeld, Young and Partners ("KYP") and Peter Ravenscroft, FAusIMM, of Burgundy Mining Advisors Ltd.