DOMINION DIAMOND CORP YELLOWKNIFE, NT, Jan. 19, 2015 /PRNewswire/ - Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the "Company") reports Diavik Diamond Mine production results for the fourth calendar quarter of 2014:
Diavik Diamond
Mine Production
(100% basis)
Q4 Q4 % Full Year Full Year %
2014 2013 Change 2014 2013 Change
Tonnes processed 0.51 0.54 (5%) 2.28 2.12 8%
(millions)
Carats Recovered 1.54 2.07 (25%) 7.23 7.24 (0%)
(millions)
Processing volumes in the fourth calendar quarter were 5% 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% lower than the comparable quarter of the prior year as a result of lower realized grades in all three ore bodies 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 has been approved by Rio Tinto plc and the Company.
Run of Mine Production Tonnes Mined and Carats
Diavik Diamond Mine (100% basis) Processed (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 0.8 million tonnes expected to be sourced from A-154 North, approximately 0.4 million tonnes from A-154 South and approximately 0.9 million 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 ("COR"). 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 0.3 million 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, P. Eng., Principal Advisor, Strategic Planning of DDMI, and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
Diavik Diamond Mine Production 40% basis
For the three months ended Dec 31, For the three months ended Dec
2014 31, 2013
Ore Grade Ore Grade
Processed (carats/tonne) Processed (carats/tonne)
(000s Carats (000s Carats
Pipe tonnes) (000s) tonnes) (000s)
A-154 3.93 4.28
South 45 176 51 220
A-154 2.06 2.10
North 77 159 69 144
A-418 82 270 3.29 94 418 4.46
COR - 12 - 2 44 -
Total 204 617 2.96(a) 216 826 3.66(a)
(a) Grade has been adjusted to exclude COR
For the twelve months ended Dec 31, For the twelve months ended Dec
2014 31, 2013
Ore Carats Grade Ore Carats Grade
Processed (000s) (carats/tonne) Processed (000s) (carats/tonne)
(000s (000s
Pipe tonnes) tonnes)
A-154 200 760 3.80 228 976 4.29
South
A-154 357 766 2.14 288 606 2.11
North
A-418 350 1,278 3.65 326 1,160 3.56
COR 3 88 - 6 155 -
Total 910 2,892 3.09(a) 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 modeled the approximate rough diamond price per
carat for each of the ore types below.
Diavik Ore Type December 2014 Average Price per Carat
(in US dollars)
A-154 South $140
A-154 North $185
A-418 $100
COR $50
Forward-Looking Information
Certain information included herein, including information about mining
activities and estimated production from the Diavik Diamond Mine,
constitutes forward-looking information or statements within the
meaning of applicable securities laws. Forward-looking information is
based on certain factors and assumptions including, among other things,
the current mine plans for the Diavik Diamond Mine; mining, production,
construction and exploration activities at the Diavik Diamond Mine;
currency exchange rates; and world and US economic conditions.
Forward-looking information is subject to certain factors, including
risks and uncertainties, which could cause actual results to differ
materially from what the Company currently expects. These factors
include, among other things, the uncertain nature of mining activities,
including risks associated with underground construction and mining
operations, risks associated with joint venture operations, including
risks associated with the inability to control the timing and scope of
future capital expenditures, the risk that the operator of the Diavik
Diamond Mine may make changes to the mine plan and other risks arising
because of the nature of joint venture activities, risks associated
with the remote location of and harsh climate at the Diavik Diamond
Mine, risks resulting from the Eurozone financial crisis, risks
associated with regulatory requirements, the risk of fluctuations in
diamond prices and changes in US and world economic conditions, the
risk of fluctuations in the Canadian/US dollar exchange rate and cash
flow and liquidity risks. Actual results may vary from the
forward-looking information. Readers are cautioned not to place undue
importance on forward-looking information, which speaks only as of the
date of this disclosure, and should not rely upon this information as
of any other date. While the Company may elect to, it is under no
obligation and does not undertake to, update or revise any
forward-looking information, whether as a result of new information,
further events or otherwise at any particular time, except as required
by law. Additional information concerning factors that may cause actual
results to materially differ from those in such forward-looking
statements is contained in the Company's filings with Canadian and
United States securities regulatory authorities and can be found at www.sedar.com and www.sec.gov, respectively.
About Dominion Diamond Corporation
Dominion Diamond Corporation is a Canadian diamond mining company with ownership interests in two major producing diamond mines. Both mines are located in the low political risk environment of the Northwest Territories in Canada.
The Company operates the Ekati Diamond Mine through its 88.9% ownership as well as a 65.3% ownership in the surrounding areas containing additional resources, and also owns 40% of the Diavik Diamond Mine. It supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and is the world's third largest producer of rough diamonds by value.
SOURCE Dominion Diamond Corporation
