Last Week, Dominion Diamond Corporation announced that its participating interest in the Buffer Zone Joint Venture at the Ekati Diamond Mine has increased from 65.3 per cent to 72 per cent, effective as of February 1, 2017, in accordance with the joint venture agreement relating to the Buffer Zone.
The increase in ownership results from the decision of the minority partner not to participate in the full fiscal year 2017 capital program for the Buffer Zone Joint Venture. The Company has funded those elements of the program that were not funded by the minority partner.
The Buffer Zone Joint Venture contains 106 mining leases covering 89,184 ha, and includes the Jay and Lynx kimberlite pipes. On July 6, 2016, the Company released the results of a positive feasibility study on the Jay project.
The Ekati mine consists of two joint ventures, the Core Zone Joint Venture and the Buffer Zone Joint Venture, in which the Company has an interest of 88.9 per cent and 72.0 per cent, respectively. All of the production in fiscal year 2017 was sourced from the Core Zone.