23 February 2017
YELLOWKNIFE, NT (February 22, 2017) – Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) reports Ekati Diamond Mine and Diavik Diamond Mine fourth fiscal quarter 2017 (November through January) sales and Ekati Diamond Mine production results. Unless otherwise specified, all financial information is presented in U.S. dollars.
Highlights
Sales:
o Fourth fiscal quarter diamond sales1 were $129.9 million from the sale of 1.4 million carats (Q4 fiscal 20162 - $178.1 million from the sale of 1.1 million carats).
Ekati Production (100% basis):
o During the fourth fiscal quarter 2017, the Ekati Diamond Mine recovered a record 2.3 million carats from 1.0 million tonnes processed (Q4 fiscal 2016 - 1.2 million carats from 0.9 million tonnes processed).
o Carat production increased by 93% compared to the same period in the prior year due to the positive impact of processing of a large proportion of high grade Misery ore.
Ekati Fiscal 2018 Mine Plan
o During fiscal 2018, the Company plans to produce 6.3 to 7.0 million carats from the processing of 3.7 to 4.0 million tonnes (fiscal 2017: 5.2 million carats from the processing of 2.9 million tonnes).
o The Company expects to process primarily high value ore from the Koala underground and Misery Main pipes during the first quarter fiscal 2018, with an increased proportion of ore from the Pigeon and Lynx pipes during the remainder of the fiscal year.
o The fines dense media separation (Fines DMS) plant, which increases the recovery of diamonds smaller than 1.2 millimetres, continues to ramp up through the first fiscal quarter, and is expected to be fully operational during the second fiscal quarter.
Fox Deep Drilling Program
o Based on encouraging results from a reverse circulation drilling campaign this winter, including an average bulk sample grade of 0.38 carats/tonne, a prefeasibility study on Fox Deep is now underway, and is expected to be completed in late fiscal 2018.