Dominion announces results of Fox Deep preliminary economic assessment

6 September 2017

Dominion Diamond Corporation reports results of a preliminary economic assessment (PEA) on the development of an underground operation below the mined out Fox open pit at Ekati. The Fox kimberlite pipe is in the Core Zone Joint Venture in which the company has an 88.9% participating interest. Amounts are 100% basis, and in $US. This analysis assumes production at Fox Deep from fiscal 2033 to fiscal 2042, which would extend the Ekati life of mine plan by seven years. Fox Deep preliminary economic assessment key operating and financial highlights include:   

• Mining Method: Incline block caving (underground)
• Mined Kimberlite: 31.3 million tonnes
• Recovered Carats: 11.0 million carats
• Recovered Grade: 0.4 carats per tonne1
• Diamond Recovery: 99%
• Initial Development Capital: $628 million
• Sustaining Capital: $192 million
• Total Unit Operating Cost: $51 per tonne processed
• Base Case Diamond Price: $232 per carat
• First Production Date: Fiscal 2033
• Mine Operational Life: 10 years
• Post-tax NPV (incremental): $187 million
• Real Discount Rate: 7%
• Post-tax IRR (incremental): 23%

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