“We’re happy to announce the outcomes from our present drilling program are indicating that the Distress pipe, which is a really excessive worth ore supply requiring virtually zero improvement capital, could be very more likely to keep in manufacturing nicely previous the unique 2026 date,” Burgundy CEO Kim Truter stated in a launch on Monday.
The potential extension of Distress’s life comes because the territory’s three diamond mines face closures within the coming years. Rio Tinto’s (NYSE: RIO; LSE: RIO; ASX: RIO) Diavik mine is because of shut in 2026, and De Beers’ Gahcho Kué mine is slated to run till 2028. Whereas Ekati’s Sable open pit is anticipated to wind down this 12 months, its Level Lake open pit may produce till 2029, in accordance with firm projections.
Burgundy acquired Ekati when it bought its former proprietor, Arctic Canadian Diamond, in March 2023 for $136 million.
The mines, situated a whole lot of kilometres northeast of the capital Yellowknife are accessible solely by winter street and airstrip.
Useful resource replace in months
Drilling and bulk sampling of the primary ore physique’s potential Southwest extension at Ekati is anticipated to begin within the fourth quarter. Up to date useful resource and reserves for Distress and the Southwest extension are anticipated within the subsequent six months, with an official prolonged mine plan scheduled for launch within the subsequent 12 months’s first quarter.
Ekati’s present mine plan is predicated on ore reserves of 15.8 million carats, Burgundy stated. The corporate additionally developed a conceptual mine plan that would prolong Ekati’s life in the direction of 2040. It includes extending Distress, shifting underground at Sable, growing underground and processing stockpiles on the Fox deposit, and doubtlessly pursuing underwater distant mining at Level Lake.
Burgundy shares have been down 7.6% to A$0.12 apiece on Tuesday in Sydney, valuing the corporate at A$170.5 million. Its shares traded in a 52-week vary of A$0.12 to A$0.24.