Online jewellery retailer Arctic Blue Diamonds has acquired a controlling stake in the WO Diamond Project in Canada.
The WO Project encompasses eight mining leases located 23km from the Diavik Diamond Mine and 53km from the Ekati Diamond Mine. It also includes the high-grade DO27 kimberlite, one of the country's largest diamond-bearing kimberlites.
The DO27 kimberlite pipe, with a surface area of 9 hectares, is situated beneath a shallow lake with an area of about 1 sq. km and an average depth of 4m. The indicated mineral resource of the project is estimated at 19.5 million tonnes of ore with a grade of 0.94 carats per tonne.
Based on independent rough diamond price indices, the average prices for DO27 diamonds are projected at $90 - $100 per carat.
The company acquired a 72.1% interest held by Peregrine Diamonds, a De Beers Canada subsidiary, and an additional 17.6% interest from Archon Minerals, to purchase a total of 89.7% of the mine.
“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,” said Arctic Blue executive chairman Patrick Evans.
Arctic Blue will now manage the diamond marketing rights for future production from the project.
Theodor Lisovoy, Managing Editor, Rough&Polished
