Dominion Diamond Corporation reports Fiscal 2016 Fourth Quarter and Year-End Sales; Ekati Diamond Mine Production Results, Ekati Fiscal 2017 Mine Plan and Jay Pipe Update

23 February 2016

YELLOWKNIFE, NT (February 23, 2016) - Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the "Company" or "Dominion") reports Ekati Diamond Mine and Diavik Diamond Mine fourth fiscal quarter 2016 (November through January) sales, Ekati Diamond Mine production results, fiscal 2017 Mine Plan for the Ekati Diamond Mine and Jay pipe update. Unless otherwise specified, all financial information is presented in U.S. dollars.

Highlights

  • Sales:
    • Fourth quarter diamond sales1 were $178.1 million ($240.6 million in Q4 2015)
    • Full year diamond sales2 were $720.6 million ($915.7 million in FY2015).
  • Ekati Production:
    • Excellent performance in the fourth quarter resulted in 42% higher carat production versus Q4 2015. 
    • During the quarter, tonnage processed was on forecast and the recovered grade was on par with or above modelled grade for all ore sources, which reflects the positive impact of the additional recovery resulting from the diamond liberation initiative.
  • Development:
    • The first ore at the Misery Main pipe has now been mined.
    • The first ore at the Pigeon pipe was mined at the end of November.
    • The Lynx pre-stripping began on schedule in December.
    • Exploratory drilling beneath the bottom of the completed Fox open pit to better understand the Fox Deep resource has now commenced.
  • Ekati Fiscal 2017 Mine Plan
    • During fiscal 2017 the Company plans to produce 5.5 million carats from the processing of 3.9 million tonnes of ore (fiscal 2016: 3.7 million carats from the processing of 3.6 million tonnes).
    • The Company expects to process high value ore from the Koala Underground, Misery Main, and Pigeon pipes as well as material from the Misery satellite pipes. Given the available sources of ore feed, the Company does not anticipate processing any low value Coarse Ore Rejects ("COR") to fill the Ekati processing plant in fiscal 2017.

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