The Diavik Diamond Mine produced 11.9 million carats of rough in 2007, up 21.4 percent compared with 2006. Production in the fourth quarter from the A154 South pipe totaled 2.9 million carats, up 16 percent from 2.5 million carats in the final quarter of 2006.

Management said that surface mining will continue on the A154 South pipe, as work continues on schedule to prepare the new A418 open pit for ore release by the end of March. Mining of the A154 North pipe will resume when it can be accessed via the underground workings, which is all according to plan.

Diavik’s joint venture partners, Rio Tinto (60 percent) and Harry Winston Diamond Corp. (formerly Aber Diamond Corp., with 40 percent) have said they will invest $563 million (U.S.) to prepare for underground mining. The money will be spent over the next two years to construct approximately 20 km of underground tunnels and surface works. Underground production will begin in 2009, and will replace open pit mining by 2012. Mine life is expected to continue beyond 2020, in accordance with the 16 to 22 years originally projected in the Diavik mine feasibility study.

Exploration continued in 2007, but the total number of kimberlite bodies discovered to date on the Diavik property remains at 68. The mine is located 300 km northeast of Yellowknife, the capital of the Northwest Territories.

[AFNS] YELLOWKNIFE, CANADA 05-02-2008 by Diamondtopics.com