An anonymous director reports
DOMINION DIAMOND CORPORATION REPORTS DIAVIK DIAMOND MINE FOURTH CALENDAR QUARTER PRODUCTION
Dominion Diamond Corp. has released Diavik diamond mine
production results for the fourth calendar quarter of 2014.
DIAVIK DIAMOND MINE PRODUCTION
(100-per-cent basis)
Q4 2014 Q4 2013 Full-year 2014 Full-year 2013
Tonnes processed (millions) 0.51 0.54 2.28 2.12
Carats recovered (millions) 1.54 2.07 7.23 7.24
Processing volumes in the fourth calendar quarter were 5 per cent lower than the
same quarter of the prior year due to the improved processing rates in
prior quarters, fully exhausting the stockpiled ore by the third
calendar quarter. This resulted in only run-of-mine ore being
processed in the fourth quarter.
Carats recovered in the fourth calendar quarter were 25 per cent lower than the
comparable quarter of the prior year as a result of lower realized
grades in all three orebodies and a higher proportion of the lower-grade A154 North ore being processed in the fourth calendar quarter of
2014 than in the comparable calendar quarter of 2013.
A new mine plan and budget for calendar 2015 have been approved by Rio
Tinto PLC and the company.
RUN-OF-MINE PRODUCTION FOR DIAVIK DIAMOND MINE
(100-per-cent basis)
Tonnes mined and processed Carats
(millions) (millions)
Mine plan for calendar 2015 2.1 6.7
The plan for calendar 2015 foresees Diavik diamond mine production of
approximately 6.7 million carats from the mining and processing of
approximately 2.1 million tonnes of ore. Mining activities will be
exclusively underground with approximately 800,000 tonnes expected
to be sourced from A-154 North, approximately 400,000 tonnes from
A-154 South and approximately 900,000 tonnes from A-418. In
addition to the 6.7 million carats produced from run-of-mine ore, there
will be production from coarse ore rejects. 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 2015
would produce 300,000 carats from COR.
The aforementioned mine plan for the Diavik diamond mine was prepared by
DDMI, operator of the Diavik diamond mine, under the supervision of
Calvin Yip, PEng, principal adviser, strategic planning of DDMI, a qualified person within the meaning of National Instrument 43-101 of
the Canadian Securities Administrators.
DIAVIK DIAMOND MINE PRODUCTION
(40-per-cent basis)
For the three months ended Dec. 31, 2014
Pipe Ore processed Carats Grade
(000s tonnes) (000s) (carats/tonne)
A-154 South 45 176 3.93
A-154 North 77 159 2.06
A-418 82 270 3.29
COR -- 12 --
Total 204 617 2.96 (a)
For the three months ended Dec. 31, 2013
Pipe Ore processed Carats Grade
(000s tonnes) (000s) (carats/tonne)
A-154 South 51 220 4.28
A-154 North 69 144 2.10
A-418 94 418 4.46
COR 2 44 -
Total 216 826 3.66(a)
(a) Grade has been adjusted to exclude COR.
For the 12 months ended Dec. 31, 2014
Pipe Ore processed Carats Grade
(000s tonnes) (000s) (carats/tonne)
A-154 South 200 760 3.80
A-154 North 357 766 2.14
A-418 350 1,278 3.65
COR 3 88 --
Total 910 2,892 3.09 (a)
For the 12 months ended Dec. 31, 2013
Pipe Ore processed Carats Grade
(000s tonnes) (000s) (carats/tonne)
A-154 South 228 976 4.29
A-154 North 288 606 2.11
A-418 326 1,160 3.56
COR 6 155 --
Total 848 2,897 3.26 (a)
(a) Grade has been adjusted to exclude COR.
Pricing
Based on the company's sales during the fourth calendar quarter of 2014
and the current diamond recovery profile of the Diavik processing
plant, the company has modelled the approximate rough diamond price per
carat for each of the ore types in the attached diamond price per carat for Diavik ore types table.
DIAMOND PRICE PER CARAT FOR DIAVIK ORE TYPES
(in U.S. dollars)
December, 2014, average price per carat
A-154 South $140
A-154 North $185
A-418 $100
COR $50
We seek Safe Harbor.
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