Evaluation of a Kimberlite Pipe

Stage 11
Stage

Stage
Stage 2
2

Stage
Stage 3
3

Stage
Stage 4
4

Discovery
Discovery
(Exploration)
(Exploration)

Delineation
Delineation
Drilling
Drilling

Mini
Mini Bulk
Bulk Sampling
Sampling Using
Using
Large
Large Diameter
Diameter Coring
Coring

Underground
Underground
Bulk
Bulk Sampling
Sampling

Purpose
Purpose

Purpose
Purpose

Purpose
Purpose

Purpose
Purpose

To
To determine
determine if
if pipe
pipe
is
is or
or has
has potential
potential to
to
be
diamondiferous
be diamondiferous

To
To determine
determine size
size &
&
geometry
geometry of
of pipe,
pipe,
multiple
phases
multiple phases etc.
etc.

Commercial
Commercial grade
grade
estimate
estimate &
& preliminary
preliminary
diamond
diamond value
value

To
To recover
recover >10,000
>10,000
carats
carats for
for valuation
valuation

Core
Core Treatment
Treatment

Sample
Sample Treatment
Treatment

Commercial
Commercial DMS
DMS plant
plant

Commercial
Commercial DMS
DMS
plant
plant

Results
Results

Results
Results

Diamonds
Diamonds >
> 1.2mm
1.2mm
recovered
recovered

Diamonds
Diamonds >
> 1.2mm
1.2mm
recovered
recovered

Underground Bulk Sampling - 1996

Pipe
A154S
A418

Tonnes Mined
Metres
Developed
1,300
800

2,585
3,335

Carats
Recovered
12,763
8,275

Exploration 1991-95

May
May 16,
16, 2002
2002 Bankable
Bankable Feasibility
Feasibility Study:
Study:
!! 25.7
25.7 million
million tonnes
tonnes of
of proven
proven and
and probable
probable ore
ore reserve
reserve
!! Average
Average grade
grade of
of 4.2
4.2 carats
carats per
per tonne
tonne (cpt)
(cpt)
!! 57%
57% (11.7
(11.7 million
million tonnes)
tonnes) of
of reserve
reserve is
is contained
contained in
in the
the A-154S
A-154S
!! A-154
A-154 South
South has
has aa grade
grade of
of 5.2
5.2 cpt
cpt and
and aa diamond
diamond value
value of
of US$79
US$79 (CDN$116)
(CDN$116)
per
per carat
carat for
for an
an average
average rock
rock value
value of
of US$412
US$412 (CDN$606)
(CDN$606) per
per tonne.
tonne.
Production
Production Data
Data
Of
Of The
The Project
Project (100%)
(100%)

Estimated
Estimated Values
Values
(Cdn
(Cdn $)
$)

Life
Life of
of mine
mine

20
20 years
years

Total
Total diamond
diamond produced
produced

107
107 million
million carats
carats

Project
Project pre-production
pre-production capital
capital cost
cost

CDN$
CDN$ 1.29
1.29 billion
billion

Nominal
Nominal Annual
Annual Processing
Processing Capacity
Capacity

1.5
1.5 million
million tonnes
tonnes

Annual
Annual Production
Production (avg.
(avg. first
first ten
ten years)
years)

7.1
7.1 million
million carats
carats

Average
Average Diamond
Diamond Price
Price (avg.
(avg. first
first ten
ten years)
years)

CDN$
CDN$ 109
109 /carat
/carat

Cash
Cash operating
operating cost
cost (avg.
(avg. first
first ten
ten years)
years)

CDN$
CDN$ 18
18 /carat
/carat

Diamond Deposits Worldwide US $/tonne

Argyle
Orapa
Fox
Sable
A-21
Jubilee
Koala
Misery
A-154 N
Udachnaya
Venetia
Jwaneng
Panda
A418
Snap Lake
A154S

50

100

150

200

250

US$/Tonne

300

350

400

450

Near Term Goal

Diavik Diamond Mine

Full Development 2015

Diavik Mine 2015

Airstrip

Dike

Water Treatment
Plant

A154N
A154S

North Rock Pile

Till

A418
Processed Kimberlite
Containment

Dike

Till

A21
Dike
400

400

800

1200 1600 2000

Scale in Metres

ad
Ro
e
Ic

South
Rock Pile

Camp and
Process Plant

The Longest-Term Goal

Full and Safe Closure

Diavik
Diavik Site
Site -- 2025
2025

Overall Project Benefits

!! 3-Years
3-Years of
of Construction
Construction
Capital
Capital Expenditure
Expenditure
$1.3
$1.3 billion
billion
Community Participation
Participation
Community
Throughout
Throughout

!! Northern
Northern Purchasing
Purchasing >38%
>38% northern
northern
!! Average
Average 800
800 construction
construction jobs
jobs
40%
40% northern
northern

!! 20-years
20-years of
of Mining
Mining Operations
Operations
Workforce
Workforce >
> 450
450
!! >
> 66%
66% northern
northern
!! 40%
40% Aboriginal
Aboriginal
!! $30
$30 million
million annual
annual salaries
salaries

$100
$100 million
million annual
annual purchasing
purchasing
!! >
> $70
$70 million
million northern
northern

!! >
> 40% of value of
of resource
resource (>
(> $3
$3 billion)
billion) accrues
accrues
to
to governments
governments

2001 - 2002 Construction Highlights

!! Winter
Winter road
road seasons
seasons
7,200
7,200 loads
loads of
of fuel,
fuel, supplies
supplies &
& construction
construction
materials
materials trucked
trucked safely
safely to
to site
site
!! Constructing
Constructing mine
mine plant
plant
!! process
process plant
plant
!! water
water treatment
treatment plant
plant
!! sewage
sewage treatment
treatment plant
plant
!! diesel
diesel power
power plant
plant
!! maintenance
maintenance complex
complex
!! permanent
permanent accommodations
accommodations
!! explosives
explosives facility
facility
!! Constructing
Constructing Earthworks
Earthworks
!! Roads,
Roads, Collection
Collection ponds
ponds &
& foundations
foundations
!! Dams,
Dams, A154
A154 dike
dike
!! Prepare
Prepare first
first open
open pit
pit

Diavik Diamond Mine Site

August 2002

Diavik Plant Site

Fuel
Fuel
Tanks
Tanks
Diesel
Diesel power
power
plant
plant

Process
Process Plant
Plant
Boiler
Boiler
plant
plant

Sewage
Sewage
Treatment
Treatment

Administration
Administration // Maintenance
Maintenance
Complex
Complex
Permanent
Permanent
Accommodations
Accommodations

August 2002

Diavik A154 Dike

July 2001
August 2001

November 2001

August 2002

September 2001

September 2002

Working with Communities

Contributing to Community Capacity
Advisory
Training
Employment
Business
Scholarships

Neighbouring Communities
Umingmaktok

Kugluktuk

ARCTIC CRICLE
KE
LA
Norman
R
A
BE
Wells
T
A
Deline
E
GR

Bathurst Inlet
Lupin Mine

NUNAVUT
TERRITORY
Diavik Diamonds Project

Ekati

Tulita
ENZIE
MACK

Gameti

Wekweti

RIVER

NORTHWEST
TERRITORIES

Wrigley

Wha Ti
Rae
Edzo
Ndilo
Fort
Simpson

Jean Marie River

Fort Providence

Nahanni Butte

YUKON
Fort
Liard

Lac de Gras

Trout Lake

Enterprise

YELLOWKNIFE
Lutselke
Dettah
KE
LA

E
AV
L
TS
A
Fort
E
Resolution
GR
Hay
River
Fort
Smith

100
Kilometres

200

Providing Employment
Total Construction Workforce
averaged 800

Southern
56%

Northern
44%

Aboriginal
Aboriginal people
people are
are about
about half
half of
of the
the
Northern
Northern construction
construction workforce
workforce

Providing Business Benefits

! Construction contracts
worth approximately
$1 billion
Other
27%

Northern
73%

! Over $730 million with

northern companies
! Doubles Diavik's 38 per
cent commitment
! $500 million with
Aboriginal firms and
their JVs

Diavik Conclusions
!! Constructing
Constructing Canadas
Canadas premier
premier diamond
diamond mine
mine ahead
ahead of
of
schedule
schedule and
and on
on budget
budget
!! Ensuring
Ensuring workplace
workplace safety
safety
!! Meeting
Meeting // exceeding
exceeding environmental
environmental commitments
commitments
!! Successfully
Successfully training
training northerners
northerners
!! Meeting
Meeting northern
northern employment
employment commitments
commitments
!! Exceeding
Exceeding northern
northern business
business commitments
commitments
!! Community
Community Advisory
Advisory Participation
Participation
!! Contributing
Contributing to
to Community
Community Capacity
Capacity
!! Looking
Looking forward
forward to
to diamond
diamond production,
production, February
February 2003
2003

Canada: A Brilliant Future

Coronation District

Ekati and Diavik

Buffalo Head Hills

SLAVE
SLAVE CRATON
CRATON

BUFFALO HEAD
TERRANE

Outline of Variably
Reworked Archean Rocks
Outline of Oldest Archean Cratons

SUPERIOR CRATON
Otish Mountains

Diavik Diamonds

Acknowledgements:

N A VIGAT O R
EXPL O R ATION CORP.

Aber
Ashton Mining of Canada