In a move that signals a strategic shift in Canada’s diamond sector, Arctic Blue Diamonds Ltd. has confirmed the acquisition of an 89.7 percent stake in the WO Diamond Project, home to the substantial DO27 kimberlite pipe in the Northwest Territories. With this transaction, Arctic Blue assumes operational control and future marketing rights over one of the country’s largest and highest-grade diamond resources—a significant milestone at a time when many of Canada’s producing mines are edging closer to depletion.
This acquisition, which consolidates a 72.1 percent stake previously held by Peregrine Diamonds Ltd., a De Beers Canada Inc. subsidiary, and a further 17.6 percent from Archon Minerals Ltd., effectively places Arctic Blue in command of a project positioned to become Canada’s next major diamond producer. Beyond its ownership stake, the company now holds the rights to market any future production from the WO Joint Venture, enhancing its ability to control not only extraction but also global distribution.
A High-Grade Resource at the Heart of Canada’s Diamond Belt
Strategically located approximately 23 kilometres from the Diavik Diamond Mine and 53 kilometres from the Ekati Diamond Mine, the WO Project covers over 5,800 hectares of prospective ground, accessed via a seasonal ice road that underscores both its logistical accessibility and northern isolation. Yet it is the size and grade of the DO27 kimberlite pipe that sets this project apart. Covering nine hectares—significantly larger than the kimberlites currently mined at Diavik and Ekati—DO27 sits beneath a shallow lake, its average depth of just four metres offering a practical entry point for future development.
Extensive exploration drilling has confirmed the scale and promise of DO27. The current indicated resource stands at 19.5 million tonnes of ore, grading at 0.94 carats per tonne, for an estimated 18.2 million carats. Notably, additional exploration targets suggest a further 6.5 to 8.5 million tonnes of potential resource below current drilling depths, underscoring DO27’s long-term production potential. While initial resource estimates date back to 2008, independent diamond valuations indicate that average rough diamond prices have climbed steadily over the past decade, rising from US$72 per carat to current projections between US$90 and US$100 per carat.
Sustainable Mining with Next-Generation Underwater Technologies
What may prove transformative for Arctic Blue is not simply the volume of diamonds underground, but the unconventional nature of the ore itself. Unlike typical Canadian kimberlites, the DO27 ore body is exceptionally soft and low in density—characteristics that open the door to a form of sustainable mining largely untested at this scale in Canada: underwater remote mining.
Arctic Blue’s leadership is keenly aware of this opportunity. The company is actively assessing the feasibility of deploying underwater remote mining (URM) technologies, such as the crawler-based systems developed by Royal IHC in the Netherlands. These machines, capable of continuous ore extraction without the use of blasting, operate at depths up to 400 metres and have already been piloted by Dominion Diamond Mines at Ekati. By utilizing URM technology, Arctic Blue could reduce both its capital outlay and environmental footprint, potentially delivering the most sustainable and cost-effective diamond production in Canada.
For Arctic Blue Executive Chair Patrick Evans, the significance of DO27 extends beyond its resource base. As the Diavik and Ekati mines near the ends of their economic lives, DO27 offers a rare chance to extend diamond production in the region using existing processing infrastructure. Alternatively, a purpose-built recovery facility in Yellowknife could emerge as a long-term solution. Evans points to the potential to produce a diamond concentrate of more than 80 carats per tonne, creating a highly efficient pipeline from extraction to recovery.
Adding further appeal is the possibility of pre-concentrating the ore onsite using a simple washing process that removes fine material, allowing only the larger diamond-bearing fractions to be transported to processing plants. This approach not only lowers transportation costs but also significantly streamlines the recovery process.
A Critical Moment for Canada’s Diamond Industry
While the WO Project currently remains on care and maintenance, Arctic Blue is moving forward with comprehensive environmental, geological, and engineering studies. These assessments will determine the optimal development strategy for DO27, whether through URM deployment, conventional open-pit methods, or a hybrid approach. Regardless of the method selected, Arctic Blue’s acquisition signals more than just a transaction—it represents a vision for the future of Canadian diamond mining, one that blends sustainability, innovation, and market agility.
With the world’s appetite for Canadian-origin diamonds remaining strong, the emergence of Arctic Blue as a dominant player could not come at a more critical juncture. From its online retail presence in Canadian fluorescent diamonds to its newfound control over one of the country’s most promising kimberlites, Arctic Blue Diamonds Ltd. is positioning itself as both a steward and a disruptor within Canada’s evolving diamond narrative.
As global demand recalibrates and existing mines inch towards closure, the success of Arctic Blue’s next moves at DO27 could well determine whether the Northwest Territories retains its status as a world-leading diamond region—or watches it fade.
