Dominion Diamond Corporation announced its Board of Directors giving the green signal to proceed with the development of the Jay Project based on the positive results of a feasibility study and subsequent revised project schedule and life-of-mine plan. The Jay Project is located is located beneath Lac du Sauvag and within the Buffer Zone Joint Venture Property, and is the most significant undeveloped kimberlite pipe deposit at Dominion’s majority-owned Ekati mine in Canada’s Northwest Territories.

Development is expected to be funded from existing cash and internal cash flow.

“The Jay Feasibility Study has confirmed the economic and technical viability of the large-scale, high grade Jay Project, which is the most significant undeveloped deposit at the Ekati mine. With a revised project schedule and updated mine plan, this positive feasibility study sets out a clear long-term plan for Ekati,” said Brendan Bell, Chief Executive Officer. He further noted that, “Our strategy for the Ekati Mine is to develop new deposits in tandem with existing mining operations in order to increase the total value of the property. The decision to proceed with Jay, combined with our earlier decision to proceed with the Sable project where construction of infrastructure has begun, are major steps towards the execution of this strategy.”

“Together these projects will add significant value to Ekati and will enable us to pursue other incremental growth opportunities near our existing operations,” Bell added.

The initial development capital cost at Jay would be of US $647 million. Development is expected to be funded from existing cash and internal cash flow.