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 GNWT-RWED |
Diamonds from the Canadian Arctic are mined from deep in the frozen rock, in the remote tundra, a place where few believed such treasures could be found.
But prospector Chuck Fipke and his partner, Dr. Stu Blusson believed they could. For a decade in the 1980s, the pair scoured the wild land for samples that would show minerals often found in association with diamonds. In 1985, Fipke found them, in a sample he'd taken near Lac de Gras, some 300 km northeast of Yellowknife. Fipke was convinced he'd found evidence of diamond-bearing kimberlites — ancient "pipes" of volcanic rock that bear the hard crystals we call diamonds.
In 1991, when Fipke and Blusson's company, DiaMet, had joined forces with Australia's BHP Minerals, the first economically-viable kimberlite was discovered. Drilling at Point Lake, BHP/DiaMet found 81 diamonds. Although not the first diamond find in North America, it was the first major commercial deposit. When the discovery was announced, it sparked the biggest staking rush in Canadian history.
Aber Resources, led by mining engineer Grenville Thomas and geologist Chris Jennings, also found diamond-bearing pipes in the Lac de Gras area in 1991. Aber staked east of the BHP/DiaMet claims, laying the groundwork for the Diavik Project.
Meanwhile, Winspear Resources was working on claims to the west, at a place called Snap Lake. The property was acquired in 2000 by the South African diamond-mining giant, De Beers.
By 2002, over 300 kimberlite pipes had been found in the Northwest Territories, 15 to 25 of them with economic potential. Many large diamond companies continue to explore the significant diamond potential of the Northwest Territories.
Development
 Jiri Hermann |
When diamonds were found in the deep rock of the remote Canadian tundra, the mining world was electrified. Claims were staked over millions of hectares. By the time the exploration boom was over, Canada's first diamond mine the Ekati Diamond Mine™, was in development by BHP/DiaMet. The company found dozens of new kimberlite pipes on its 344,000 hectare claim block. One of the diamond pipes carried unusual numbers of desirable white stones, of gem size and quality. After a stringent approval process, BHP/DiaMet began its operations in 1998. BHP acquired DiaMet's share in the project, and the Ekati Diamond Mine™ is now 80% owned by BHP Billiton Diamonds Inc. and 20% by the original discoverers, Chuck Fipke and Dr. Stu Blusson. The Ekati Diamond Mine™ is located approximately 300 km northeast of Yellowknife, capital city of the Northwest Territories (click for map of mines). The mine is estimated to yield 3 to 5 million carats annually. Many large diamonds have been recovered, including a 182 carat stone. It employs about 600 people year-round, 66% of whom live in the Northwest Territories. Of that number, half come from Aboriginal communities. For more information, please visit http://ekati.bhpbilliton.com.
Construction of the $1.3 billion Diavik Diamond Mine was completed in early 2003, and the first diamonds mined were shipped to the joint venture partners in late January. At peak production, the Diavik Mine was expected to produce over 8 million carats of diamonds annually with an expected mine life of 16 to 22 years. In 2006 the mine produced 9.8 million carats of rough. Production will come from three ore bodies, the A21, A418 and the A154 kimberlite pipes. The ore bodies are underwater just offshore of a 20 sq km island located in Lac de Gras, approximately 300 km northeast of Yellowknife, NWT. The first dike, the 3.9 kilometre A154 dike, was made watertight in July 2002. It was pumped dry three months later. Construction of Diavik’s second rockfill dike around the A418 pipe was virtually completed in third quarter 2006, allowing dewatering to be completed. Pre-stripping of overburden to prepare for open pit mining commenced in late 2006.
In late 2006, crews reached and began underground test mining of the A418 ore body. A separate exploration decline reached the A21 pipe and preparations are underway to remove a bulk sample for diamond valuation. The 2007 plan has crews advancing the tunnel to access the A154 South and North ore bodies as part of underground mining feasibility studies. Diluted mineable reserves are estimated at 29.8 million tonnes containing more than 100 million carats, at an average grade of 3.2 carats per tonne.
Located approximately 300 km northeast of Yellowknife (click for map of mines), the project is a joint venture between Diavik Diamond Mines Inc. (60 percent), a wholly-owned subsidiary of Rio Tinto, and Aber Diamond Corporation (40 percent). Diavik currently employs over 760 people. To learn more, please visit www.diavik.ca.
The Snap Lake Diamond Project, located approximately 220-km northeast of Yellowknife, is 100 percent owned by De Beers and, once constructed, will be the first entirely underground diamond mine in Canada. Subject to development approval, it is anticipated mine construction will begin in 2005 and production in 2007. Snap Lake is a kimberlite dyke with a mineable resource of 22.8 million tonnes. Production will be at a projected average rate of 3,000 tonnes per day, mining a grade of 1.45 carats per tonne at an estimated value of US$76/carat. Mine life is estimated to be approximately 20 years. The project is anticipated to employ about 500 people during construction and approximately 550 permanent people during operations.The proposed mine-site is located about 220 km north of Yellowknife (click for map of mines). For more information, please visit www.debeerscanada.com.
The Canadian Way
When
you select a GOVERNMENT CERTIFIED CANADIAN DIAMOND™, you can be certain that
it was mined responsibly. The companies that mine diamonds in the
Northwest Territories must observe strong Canadian laws that protect
the Arctic environment and the mine workers.
Before diamond companies can build mines in Canada's Arctic, they
are required to make a careful assessment of the environment. Under
the permitting process, mining companies must demonstrate that impacts
on vegetation, air and water quality, and wildlife populations are
sustainable. In addition, social and economic impacts on northern
communities are carefully examined.
BHP/DiaMet conducted extensive hearings in small Aboriginal communities that would be affected by the mine. The consultations revealed the concerns of the people who laid claim to the land where diamond mining would take place. These concerns, including respect for and preservation of significant sites on traditional lands, were carefully addressed. Aboriginal and other northern workers were assured participation in training and job programs at the Ekati Diamond Mine™.
The Diavik Diamond Project has followed the same review process and has also negotiated agreements with the local communities.
De Beers has recently completed an extensive assessment and review process for its Snap Lake project.
Mines map
Click map to see mine locations
Secondary industry
Working with the private sector, the Government of the Northwest Territories is committed to maximizing the opportunities created by development of diamond resources in Canada's Northwest Territories. This long-term goal includes developing a world-class secondary diamond industry and helping to diversify the northern economy. This has meant encouraging cutting and polishing factories to establish themselves in Yellowknife, developing world-class training programs, and supporting skilled jobs for Northerners.
Although the secondary industry is relatively new, this development has already benefited the north. Total employment created to date equals approximately 150 persons. This is significant considering that in 1999, the manufacturing sector in the NWT employed only 172 people. It is also estimated that at full production, the two cutting and polishing facilities will contribute over 9 million to the Territorial GDP almost doubling the manufacturing sectors contribution prior to development.
The future
It is anticipated that once Northwest Territories mines reach full production, they will produce from 12% to 15% of the world's diamonds by value — making Canada the third-largest producer of diamonds, ahead of South Africa. Given this significant supply of diamonds, greater development of cutting and polishing factories is expected. Efforts are under way to encourage a jewellery-making industry, combining high-quality GOVERNMENT CERTIFIED CANADIAN DIAMOND™ with traditional northern jewellery designs.
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