Burgundy Diamond Mines (ASX:BDM) has begun targeted mine life extension delineation and geotechnical drilling at the Misery underground mine in the Northwest Territories, Canada.
Misery’s ore body appears larger than originally modelled, with two extension drill targets, comprising the vertical and lateral target.
The vertical target is a part of the main ore body and is deeper and wider below the planned production levels, while the lateral target is a part of the southwest extension to the main ore body. The lateral target is a new target area that is not included in Ekati’s mineral resource.
Burgundy, which has a market capitalisation of $277.15 million, says a 30,000-tonne bulk sample will be collected from the southwest extension target during the fourth quarter for grade and pricing information, as part of a separate program.
Results from the main ore body drilling program will be released this year, while results of the southwest extension target will be released in the first half of next year.
Both sets of results will be published in the form of an updated resource estimate and reserves estimate. The company also plans to release its first updated mine plan before the end of 2024.
CEO Kim Truter says Misery can potentially generate around $350 million per year in production value from over 1 million tonnes of ore.
“Any additional tonnage we are able to declare through our drilling work will be significantly value accretive,” he says.
“This represents part of our important ongoing technical work to extend the overall mine life across the Ekati portfolio and represents an exciting step in that process.”
The Ekati Diamond Mine lies in the Lac de Gras region of the Northwest Territories of Canada, 300km northeast of Yellowknife. Ekati is Canada’s first surface and underground diamond mine and its gem diamonds are world-renowned.
Burgundy Diamond Mines is a global resources company focused on mining, production, cutting, polishing, and sale of diamonds that operates across three continents.
Write to Aaliyah Rogan at Mining.com.au
Images: Burgundy Diamond Mines
