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Arctic Blue Diamonds says its newly secured DO27 kimberlite deposit near Yellowknife could breathe new life into the Northwest Territories’ diamond industry.
The company recently acquired 89.7 percent of the WO Diamond Project, which includes the nine-hectare DO27 pipe, located 23 kilometres southeast of the Diavik diamond mine and 11 km from the winter road that connects the NWT’s existing diamond mines to Yellowknife.
Arctic Blue, an NWT-based diamond retailer, bought a 72.1-percent interest in the WO project from Peregrine Diamonds, a subsidiary of De Beers Canada, and 17.6 percent from Archon Minerals.
Described as one of the largest diamond-bearing kimberlites in Canada, DO27 lies beneath a small, shallow lake with an average depth of four metres. According to Arctic Blue, it has undergone extensive drilling.
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“The diamond industry has been one of the [largest] employers in the NWT, one of the most significant taxpayers in the NWT. It contributes enormously to the wealth and prosperity of the NWT,” Patrick Evans, executive chair of Arctic Blue, told Cabin Radio.
“As someone who has been involved in the diamond industry in the territories for more than 25 years, I’ll be very keenly focused on what we can do to sustain the future of the diamond industry in the NWT.”
Although DO27 was discovered years ago, Evans said it has largely been overlooked due to the unusually soft nature of its kimberlite.
However, he said that very softness – combined with the ore’s low density – makes it ideal for underwater remote mining, a method that significantly reduces environmental impact. Other companies, like the owners of the nearby Ekati mine, have been exploring the same technology.
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Arctic Blue is looking into several options for processing, including partnerships with Ekati, Diavik, and the territory’s third active diamond mine, Gahcho Kué, or the establishment of a new, lower-cost facility in Yellowknife.
Evans explained that at a typical diamond mine, the kimberlite is relatively hard and must be crushed into fine particles before the diamonds can be separated, which he said can be a costly process.
By contrast, he said, DO27’s soft kimberlite can be washed on-site to remove about 90 percent of the material, leaving behind a high-grade concentrate that could then be trucked to a Yellowknife facility with a “much simpler” diamond recovery system.
The company is targeting production by 2029, aiming for an output of somewhere “between one and two million carats a year.”
He said the next step is to begin preparing the mine for permitting and development. Once approved, Evans expects the construction phase to take less than 12 months to complete.
“We think it’s the very best diamond deposit in the NWT to be brought into production relatively quickly because of this new mining method, potentially extending the lives of the existing mines by producing this high-grade concentrate,” he said.
“The combination of all of it lends the opportunity to secure the future of the diamond industry in the NWT … This would keep the diamond industry going until at least 2040.”
