30 years of Ekati diamonds, 30 years more

In its first full year as the operator of the world-class Ekati diamond mine, Burgundy Diamond Mines Ltd. marked several milestones, including consistent diamond recoveries and advancements in extending the mine’s future, reinforcing its position as a prominent player in the Canadian diamond industry while laying the groundwork for continued growth and success.

Over the past year, Burgundy worked to solidify its position as the new operator of the Ekati diamond mine by focusing on improving production and extending the mine’s lifespan. This was reflected in the consistent quarterly performance throughout the year, despite challenges in the diamond market.

“Despite suppressed diamond market prices, we remain optimistic as supply-demand tightens and look forward to launching Ekati’s tenth mine – a landmark achievement,” said Burgundy Diamond Mines CEO Kim Truter.

In less than two years, Burgundy moved quickly to expand Ekati’s capabilities, advancing beyond initial stabilization to actively pursue new development and growth. This is exemplified by the development of the Point Lake open-pit project, which is set to become Ekati’s tenth operational mine.

This quickly became a critical component of the company’s strategy to secure long-term production at Ekati. With initial production planned in late 2024, Point Lake holds more than just increased production potential but also historical significance as the first diamondiferous kimberlite discovery in Northwest Territories – which led to the eventual development of Ekati.

Burgundy Diamond Mines Ltd.

Located approximately three kilometers northeast of the main mine camp, Point Lake, evidenced by its name previously existed as a natural lake, which required draining before mining operations could begin. Dewatered in two phases, and as part of the process, a total of 523 lake trout and 6,348 slimy sculpins were relocated prior to emptying the habitat.

The water was then pumped into the King Pond Settling Facility and Lynx pit, allowing suspended solids to settle and facilitating future underwater remote mining trials at Lynx pit.

Currently, Ekati is estimated to contain approximately 140 million carats of diamonds in the indicated category, even after more than 26 years of production. These remaining resources are concentrated within the currently active Misery underground and Sable open-pit mines, with Point Lake projected to add an estimated 5.3 million carats once it begins production, further bolstering Ekati’s resource base.

This robust resource position led to a major milestone in late October, as Burgundy celebrated Ekati reaching 100 million carats of diamonds recovered – a testament to the mine’s enduring contribution to the diamond industry.

“As we reflect on this historic achievement, Ekati continues the legacy as one of the premier diamond assets in the world in a tier one location producing highly sought after sustainably and ethically produced diamonds for the global market,” said Truter.

With substantial reserves still available, Ekati is well-positioned for another 30 years of production, potentially even longer if further resources are identified.

“We are proud of the team we have in place and of everything we have achieved so far,” Truter added. “Ekati still has 140 million carats remaining in Indicated Mineral Resources, one of the largest unmined diamond endowments in the world, which provides Burgundy shareholders an indication of Ekati’s remaining mine life potential.”

Beyond Point Lake, Burgundy has also focused on extending the mine life of other key operations at Ekati. In particular, the Misery underground mine has shown promise for extended production through recent exploration efforts.

Looking ahead into 2025, Burgundy continues to focus on operational efficiency and advancing exploration to maximize Ekati’s resource base.

With production at Point Lake expected to commence and further drilling at Misery ongoing, Burgundy is executing its strategic plan to secure sustained production at Ekati.

The company is also progressing feasibility studies for additional underground sites, all aimed at maintaining Ekati’s position as a key contributor to the global diamond market, while delivering value for shareholders and supporting local communities in the Northwest Territories.

Source: DCLA

Mountain Province Losses Increase in "Challenging Market"

Mountain Province reported increased net losses for the latest quarter as prices keep on dropping in a “challenging market”.

The Canadian miner today (7 November) announced a net loss of $13.6m for the three months to 30 September, following on from a $4.7m loss in Q2 (all figures are in US dollars).

“In Q3 2024 our sales achieved 100 per cent sell-through with no unsold stock held at the end of September and a higher average selling price than the three preceding quarters,” said Reid Mackie, VP sales and marketing at Mountain Province.

The average price per carat was, however, down 21 per cent on a year ago – from $95 to $75.

The company sold a 679,599 carats were sold for $50.8m, compared to 478,653 carats in Q3 2023 for $45.3m. Year-on-year the number of carats sold was up almost 30 per cent, but revenue increased by just 12 per cent.

Adjusted EBITDA was $12.5m and loss from mine operations was $8m.

As for operations at the Gahcho Kue mine (pictured), the number of tonnes of ore treated increased 10 per cent year-on-year, but the number of carats recovered fell by 10 per cent.

CEO Mark Wall explained that this was “driven by planned lower grade in Q3 and unplanned lower grade in March and early Q2 of 2024”.

He said that while the diamond market had been disappointing, he was optimistic that the price environment would recover during 2025 and that it would be followed by a very strong production year in 2026.

Source: DCLA

Significant Potential at Ekati, say New Owners

Vivid yellow rough diamond

Burgundy’s $136m deal to buy the Ekati diamond mine, in Canada, is likely to extend its life “significantly”, says Kim Truter, the company’s CEO.

The purchase, announced last week, from Arctic Canadian, should be concluded next month, pending financing and shareholders’ approval.

“The real advantage is it’s a tier-one asset in a tier-one country,” Truter told CBC News, Canada’s publicly owned news and information service.

He said he saw untapped potential at Ekati, which opened in 1998 as Canada’s first diamond mine.

Ekati is particularly attractive to Australia-base Burgundy because of the fancy yellow stones it produces, such as the 71.26-carat octahedron diamond recovered last September (pictured), believed to be the largest fancy vivid yellow gemstone discovered in Canada.

New owner Burgundy has a keen interest in yellow diamonds. It is currently reviving the Ellendale mine, Western Australia, once the world’s largest producer of fancy yellow diamonds, and has established its own dedicated cut and polish facility in Perth, also in Western Australia.

Burgundy is buying Ekati from Arctic Canadian Diamond Company, which acquired it in February 2021 after the previous owners, Dominion Diamonds, filed for insolvency.

Source: IDEX Online

151 ct Yellow diamond recovered at Canada’s Arctic Circle

oronto-listed Mountain Province Diamonds will next week put on sale an “exceptional” coloured rough diamond, which it recovered from the Gahcho Kué mine, in Canada’s Northwest Territories.

The diamond, a 151.60 t octahedron of exceptional clarity, will be offered for sale alongside a selection of more than 90 individual special rough diamonds recovered from the company’s Canadian diamond mine.

The upcoming sale represents the biggest offering of +10.8 ct gem quality diamonds offered by the company to date.

“This important diamond represents a clear example of the Gahcho Kué mine’s ability to consistently recover high-quality gems of exceptionally large size. These gems are highly coveted by collectors around the globe not only for their beauty but increasingly, for their Canadian origin,” commented VP for diamond marketing Reid Mackie.

Source: DCLA

Study yields new insight in hunt for rare, valuable yellow diamonds

A new study by University of Alberta scientists could help guide the search for rare, high-value yellow diamonds in the Canadian North.

The researchers, led by PhD student Mei Yan Lai, examined the chemical makeup of stones recovered from the Chidliak and Ekati mines in Northern Canada to get a better understanding of how they formed.

“Without this research, we wouldn’t know that two separate formation events occurred, and that the second, more recent event is responsible for the yellow colour,” explained U of A diamond geologist Thomas Stachel.

“The more we know about the origin of these potentially high-value diamonds, the better results for diamond exploration and value creation in Northern Canada.”

Lai said they wanted to understand the origin of the yellow colour in the diamonds from the two deposits.

“Canadian yellow diamonds have never been studied spectroscopically in detail. Our results suggest that the cause is the preservation of unstable single nitrogen atoms preserved inside the diamonds,” explained Lai, who conducted this research as part of her master’s studies in the Diamond Exploration Research Training School under the supervision of Stachel.

The research team determined that some yellow diamonds contain colourless cores, meaning that the yellow outer layers crystallized on top of clearer centres. Lai determined that the yellow diamonds crystallized no more than 30,000 years before the kimberlite eruptions that brought them up to Earth’s surface.

“Our analysis shows that the colourless cores in these yellow diamonds are about one billion years older,” Lai said. “In fact, the carbon isotope compositions and nitrogen concentrations of the colourless cores and yellow outer layers are significantly different, suggesting that they formed in at least two distinct events and involved different diamond-forming fluids.”

The researchers said discovering a potential new source of yellow diamonds in the Canadian North is economically significant, as the previous main source of high-quality yellow diamonds, the Ellendale Mine in Western Australia, was recently shut down.

The discovery of colourless cores in some of the yellow diamonds may also be of interest to the jewelry trade, said Lai.

“Occasionally, rough yellow diamonds lose their vibrant yellow colour after being cut and polished—probably because this kind of diamond has a thin layer of yellow overgrowth on top of the geologically older colourless core,” she said.

The project is a collaboration with Dominion Diamond Mines and Peregrine Diamonds Ltd. Part of the analyses were done at the Gemological Institute of America.

The research is supported by a bursary through DERTS, funded by the Natural Sciences and Engineering Research Council of Canada’s Collaborative Research and Training Experience program.

The study, “Yellow Diamonds With Colourless Cores—Evidence for Episodic Diamond Growth Beneath Chidliak and the Ekati Mine, Canada,” was published in Mineralogy and Petrology.

Source: DCLA

Study yields new insight in hunt for rare, valuable yellow diamonds

A new study by University of Alberta scientists could help guide the search for rare, high-value yellow diamonds in the Canadian North.

The researchers, led by PhD student Mei Yan Lai, examined the chemical makeup of stones recovered from the Chidliak and Ekati mines in Northern Canada to get a better understanding of how they formed.

“Without this research, we wouldn’t know that two separate formation events occurred, and that the second, more recent event is responsible for the yellow colour,” explained U of A diamond geologist Thomas Stachel.

“The more we know about the origin of these potentially high-value diamonds, the better results for diamond exploration and value creation in Northern Canada.”

Lai said they wanted to understand the origin of the yellow colour in the diamonds from the two deposits.

“Canadian yellow diamonds have never been studied spectroscopically in detail. Our results suggest that the cause is the preservation of unstable single nitrogen atoms preserved inside the diamonds,” explained Lai, who conducted this research as part of her master’s studies in the Diamond Exploration Research Training School under the supervision of Stachel.

The research team determined that some yellow diamonds contain colourless cores, meaning that the yellow outer layers crystallized on top of clearer centres. Lai determined that the yellow diamonds crystallized no more than 30,000 years before the kimberlite eruptions that brought them up to Earth’s surface.

“Our analysis shows that the colourless cores in these yellow diamonds are about one billion years older,” Lai said. “In fact, the carbon isotope compositions and nitrogen concentrations of the colourless cores and yellow outer layers are significantly different, suggesting that they formed in at least two distinct events and involved different diamond-forming fluids.”

The researchers said discovering a potential new source of yellow diamonds in the Canadian North is economically significant, as the previous main source of high-quality yellow diamonds, the Ellendale Mine in Western Australia, was recently shut down.

The discovery of colourless cores in some of the yellow diamonds may also be of interest to the jewelry trade, said Lai.

“Occasionally, rough yellow diamonds lose their vibrant yellow colour after being cut and polished—probably because this kind of diamond has a thin layer of yellow overgrowth on top of the geologically older colourless core,” she said.

The project is a collaboration with Dominion Diamond Mines and Peregrine Diamonds Ltd. Part of the analyses were done at the Gemological Institute of America.

The research is supported by a bursary through DERTS, funded by the Natural Sciences and Engineering Research Council of Canada’s Collaborative Research and Training Experience program.

The study, “Yellow Diamonds With Colourless Cores—Evidence for Episodic Diamond Growth Beneath Chidliak and the Ekati Mine, Canada,” was published in Mineralogy and Petrology.

Source: DCLA