22 February 2016
YELLOWKNIFE, Northwest Territories--(BUSINESS WIRE)--Feb. 22, 2016-- Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the “Company” or “Dominion”) is pleased to announce positive results of a pre-feasibility study (“Sable PFS”) 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. The pre-feasibility study updates certain key economic and technical assumptions regarding the Sable Project from the preliminary economic assessment (“PEA”) disclosed in September 2015.
The Sable PFS evaluated the development of the Sable pipe as an incremental development opportunity of the Jay Project, and the NPV calculation for the Sable Project represents the Company’s share of the incremental NPV. This analysis includes the positive cash flow effects of the Sable Project, while also factoring in a deferral of Jay ore processing and additional years of fixed operating costs. Incorporating production from Sable into the Jay Project will keep the existing Ekati process plant at its full capacity until 2033 (with Sable processing ending in 2027). Sable’s higher value ore will allow for optimal mine sequencing and operational flexibility to maximize the value of the Ekati operation.