Burgundy Diamond Mines believes production from one of the high-value pits at its Ekati deposit will continue “well past” its original 2026 end-of-life date.
Preliminary results from the company’s drilling program at the Misery region of Ekati, which is expanding from open pit to underground, have shown a “larger ore body” than originally thought, the company said last week. All drill holes have intersected with kimberlite pipe earlier than the miner had previously modeled. Burgundy’s testing also turned up a fancy-yellow diamond in the center of the core, below the last planned mine level, and outside of the original modeling.
“Results from our current drilling program are indicating that the Misery pipe, which is a very high-value ore source requiring almost zero development capital, is very likely to stay in production well past the original 2026 date,” said Burgundy CEO Kim Truter.
The company will also initiate testing of the southwest extension of the main ore body, an area it believes holds diamonds, but has not previously been part of the company’s mine plan, it added. That will take place in the fourth quarter.
While Burgundy will issue its updated mine plan in the first quarter of 2025, it’s likely the newly targeted areas will extend production through 2040, rather than the original 2028 closure date. Ekati is one of three mines in Canada’s Northwest Territories, all of which were pegged to close before 2030. Last year, Rio Tinto spent $40 million to keep the Diavik mine going until 2026, while Gahcho Kué, a joint venture between De Beers and Mountain Province, recently extended its lifespan to 2031, as opposed to 2030.
Image: An aerial view of the Ekati mine. (Burgundy Diamond Mines)
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