6 July 2016
July 06,2016
YELLOWKNIFE, Northwest Territories--(BUSINESS WIRE)--Jul. 6, 2016-- Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the “Company” or “Dominion”) is pleased to announce that the Board of Directors of the Company has given its approval to proceed with the development of the Jay Project based on the positive results of a feasibility study (“FS”) and subsequent revised project schedule and life-of-mine plan.
The Jay Project is located within the Buffer Zone Joint Venture Property, and is the most significant undeveloped kimberlite pipe deposit at Dominion’s majority-owned Ekati mine in Canada’s Northwest Territories.
Highlights:
Positive project economics. Base case post-tax NPV at 100% share of US $398 million and IRR of 15.6%. At Dominion’s share of both the Buffer Zone and Core Zone joint ventures, the project base case post tax NPV is US $278 million and IRR is 16.7%. Jay will utilize existing Ekati mine infrastructure and has total development capital cost of US $647 million.
Self-funding. Development is expected to be funded from existing cash and internal cash flow.
Platform for future growth at Ekati. Mine life extension to calendar 2033 opens up further development opportunities.
Development schedule aligned with positive market outlook. Processing commences in calendar 2022 which positions the project well to take advantage of favorable supply-demand dynamics in the diamond market, particularly in the lower price segment.