11 July 2024
(July 10, 2024) Calgary, Alberta -As part of its ongoing mine life extension work across all of its projects, Burgundy Diamond Mines Limited (ASX:BDM) is pleased to announce the start of targeted mine life extension delineation and geotechnical drilling this week at its active Misery underground mine.
Highlights
The Misery underground mine historically produces approximately 1.1 million tonnes of mined ore annually (-3 million carats) with a production value of ~US$235 million (~A$350 million}.
Misery underground's ore body appears larger than originally modelled with two extension drill targets:
A 30,000 tonne bulk sample will be collected from the Southwest extension target during the fourth quarter for grade and pricing information, as part of a separate program.
The results of the Main ore body drilling program will be released this year, while the results of the Southwest extension target (drilling and a bulk sample) will be released during the first half of 2025. Both sets of results will be published in the form of an updated Mineral Resource and Ore Reserve estimate.
Burgundy's Misery underground mine is the highest valued ore on the wider Ekati property with exceptional grade at ~3.12 carats/tonne, and a population of rare yellow diamonds that are highly sought after from the world's leading jewellery houses.
When Burgundy acquired the Ekati diamond mines, the Misery underground operation had a mine plan ending in late 2025. However, based on a series of cubex delineation holes drilled in 2023, mining observations in deeper levels and four preliminary probe holes drilled in 2024, the Misery Main ore body appears larger than originally modelled. In addition, a southwest extension to the Main ore body represents an exciting target area that will undergo further drilling and bulk sampling.
Burgundy is rapidly advancing its evaluation work for both these Misery underground targets. The results of the Main ore body and Southwest extension drilling program (including the south1Nest bulk sample), will be released in the form of an updated Mineral Resource and Ore Reserve estimate in the fourth quarter this year and the first half of 2025, respectively. Burgundy is aiming to publish its first updated mine plan before the end of the year.
Burgundy Diamond Mines Chief Executive Officer & Managing Director, Kim Truter said:
"Misery is an exceptional asset which can generate around A$350 million per annum in prcx.fuction value from just over a million tonnes of ore. Any additional tonnage we are able to declare through our driffing work will be significantly value accretive. This represents part of our important ongoing technical work to extend the overall mine life across the Ekati portfolio and represents an exciting step in that process. "