Burgundy to release new Ekati mine plan by end of July

After laying off hundreds of people at Ekati, owner Burgundy says it’ll set out the NWT diamond mine’s path forward by the end of this month.

Mining had been taking place at two Ekati sites: underground beneath the Misery pit and at a new open pit, Point Lake.

On Wednesday, Burgundy “temporarily suspended” mining at Point Lake, saying it was “sub-economic” with diamond prices on the global market as low as they are.

Mining at Misery continues, but a spokesperson for the company said “several hundred” employees and contractors had lost their jobs as a result of the Point Lake stoppage. About 1,200 people worked at Ekati over the course of 2024.

In a Friday update delivered to the Australian Securities Exchange, Burgundy set out a slightly more detailed rationale for this week’s changes.

The company also said it would deliver a new mine plan – explaining how it wants to develop Ekati in the years ahead – by the end of the month.

“The work to publish the first Burgundy-issued mine plan is near completion,” stated the Australia-based firm, which acquired Ekati in 2023, “and the company will release it by the end of July 2025.”

“In addition, Burgundy will also release a pre-feasibility study on the proposed development of Fox underground as a long-term project,” the statement continued, referring to a deposit about eight kilometres from Ekati’s processing plant that was last mined as an open pit in 2014.

In its statement to the ASX, Burgundy said workers had been preparing the new Point Lake open pit for mining since mid-2024.

However, the company said a bulk sample taken from Point Lake in May this year – and processed in June so staff could determine pricing of Point Lake stones for the rough diamond market – showed there were no “production scenarios” in which mining at Point Lake was viable at current prices.

“Misery has been the principal production centre at Ekati for many years. Mining continues at Misery underground, unaffected by the suspension of activities at Point Lake,” the company reiterated.

“More importantly, production rates at Misery have significantly improved in recent months, via improved mining techniques and equipment utilization.”

Burgundy added it is also “resetting its operating model to support a viable adjusted mine plan without near-term surface operations,” without providing further detail.

Friday’s announcement allowed trading of Burgundy shares on the ASX, which had been suspended since Wednesday, to resume.

Burgundy’s share price has been trending downward since early 2024. On Friday, the company opened at AU $0.028 – down from $0.039 on Tuesday – and had recovered to $0.034 by the close of trading in Canberra.