Interesting report...but I think they skimmed over one point that is significant:
"Interestingly, one difference between the topographic expression of kimberlites in the Lac de Gras region, N.W.T, and Alberta, is that ... the Lac de Gras kimberlites typically occur beneath lakes or in similar, covered depressions."
My friend, who is a mining engineer, tells me that this is the most highly significant statement in this report. He reminded me its not enough just to have diamonds (or gold, silver, copper, etc) in the ground. For it to have a net value, the cost of extracting it must be less than the potential revenue. The cost of mining diamonds at 'Buffalo Hills', which will be an 'Open Pit' type of operation, is about 10% of the cost of mining with underground methods in NWT. Naturally the processing, and support costs are the same. So lets say the combined production cost is 1/3 of that at NWT. Intuitively, this means that the grade can be 1/3 of that found in NWT as well, to generate similar profits.
This is without all the other, cost side, factors such as existing infrastructure, climate, access, etc. All together, the cost side is as exciting as the revenue side (grade, tonnes, diamond quality). |
