Gahcho Kué diamond mine surpasses spend threshold with NWT and Indigenous businesses

Naturally fluorescing rough diamond parcel from the Gahcho Kué mine. Credit: Mountain Province Diamonds

De Beers Group and Mountain Province Diamonds announced that their joint venture Gahcho Kué diamond mine has surpassed the C$2 billion spending threshold with Northwest Territories and Indigenous business.

The milestone represents 61% of the total C$3.2 billion spent on the project since 2015 when construction began. Local businesses supply welding, transportation logistics, trucking, passenger and cargo flights, labour, and camp catering. The venture has a stated goal of sourcing at least 60% of its requirements for the project from local businesses.

According to the NWT Bureau of Statistics, diamond mining is the largest contributor to the territory’s gross domestic product – C$588 million out of C$4.25 billion in 2023.

Key elements of the economic contribution of the Gahcho Kué mine include:

Gahcho Kué has a tiered contracting structure that gives preference to Indigenous and NWT businesses.
Since 2006, C$5.3 billion has been spent with local and Indigenous business in the Northwest Territories and northern Ontario by Gahcho Kué and De Beers Group’s wholly owned Snap Lake (NWT) and Victor (Ontario) mines. (Snap Lake and Victor are now in active closure).
In 2023, 69% of the Gahcho Kué mine spend was with NWT and Indigenous companies, totalling C$228 million, the highest amount spent with NWT businesses since construction.
In 2023, C$90 million was spent with companies operated by the mine’s impact benefit agreement (IBA) communities.
From 2006 to 2023, Gahcho Kué and Snap Lake mines have contributed a combined C$26.5 million in social investment within the NWT.
Gahcho Kué has also made significant payments to Indigenous communities in terms of six IBAs and has paid resource royalties to the government of the NWT.
Gahcho Kué was officially opened in 2016 and now provides 663 full-time equivalent jobs, including 245 jobs held by NWT residents.

The mine is located about 280 km northeast of Yellowknife, NWT, on the traditional territories of Tlicho, Dene and Metis peoples. De Beers is the 51% owner and operator. Mountain Province retains the remaining 49%.

In 2023 the project mined 3.3 million tonnes of kimberlite and recovered nearly 5.6 million carats (on a 100% basis). Guidance for 2024 is 4.2 million to 4.7 million carats.

Source: Mining.com

Star Diamond confirms Type IIa high value diamonds at Orion North, Taurus kimberlites

Star Diamond has completed a study into the abundance of Type IIa diamonds in parcels recovered from the Early Joli Fou geological units at the Orion North (K120, K147 and K148) and Taurus kimberlites (K118, K122 and K150).

The pipes are located within the Fort a la Corne diamond district of central Saskatchewan, including the Star–Orion South diamond project, on properties held in a joint venture with Rio Tinto Exploration Canada.

These diamond parcels were recovered by Star Diamond between 2006 and 2008 from 120-cm diameter drilling programs. The latest study confirms that unusually high proportions of Type IIa diamonds are present in both the Orion North and Taurus kimberlites.

Of particular note is the high proportion of Type IIa diamonds in the Orion North 147-148 EJF (52%), of which 66% of the 24 stones, 0.66 carats and above are Type IIa. The largest Type IIa diamond identified was a 6.88-carat stone from Orion North (K147-K148 EJF).

Senior technical advisor George Read said that the Type IIa diamonds at Orion North and Taurus are top white in colour, Type IIa diamonds are rare and account for less than 2% of all natural rough diamonds mined from kimberlites. Many high-value, top colour, large specials (greater than 10.8 carats) are Type IIa diamonds, which include all 10 of the largest known rough diamonds recovered worldwide.

The study also confirms and augments an earlier study of Type IIa diamonds being present in the Fort a la Corne kimberlites with Star (26.5%) and Orion South (12.5%).

A target for further exploration completed by Star Diamond in 2014 estimated that between 881 million and 1.04 billion tonnes of the major EJF units, containing between 46 and 79 million carats, occur within the Orion North and Taurus kimberlite clusters.

Orion North (K147, K148 and K220) alone is estimated to contain between 340 million and 410 million tonnes of EJF kimberlite with an estimated range of grade of 2.75 to 8.37 carats per hundred tonnes.

Source: mining.com

Kimberlite

Kimberlite is an igneous rock, typically blue or green in colour, from which most diamonds are mined. It is of particular interest in the study of diamonds because it serves as the primary host rock for the formation and occurrence of these precious stones. Kimberlite is found in specific geological structures known as kimberlite pipes, which are deep, vertical fissures or conduits in the Earth’s crust. These pipes were formed by volcanic activity, and they are the main source of natural diamonds that are mined today.

Formation and Composition of Kimberlite
Kimberlite is an ultramafic rock, meaning it contains a high proportion of magnesium and iron, with low silica content. The primary components of kimberlite include:

Olivine: A green mineral that is a common constituent of kimberlite, contributing to its characteristic colour.
Pyroxenes: A group of minerals that also form part of kimberlite’s composition.
Carbonates: Minerals such as calcite and dolomite can be found in kimberlite, sometimes in large quantities.
Clay Minerals and Volcanic Ash: In some cases, kimberlite also contains elements derived from the surface, such as clay minerals or volcanic debris.
Diamond Crystals: Most notably, kimberlite contains diamonds, though the quantity and size of these diamonds vary.
The volcanic activity responsible for the formation of kimberlite pipes involves the eruption of magma from deep within the Earth’s mantle. This magma, under extremely high pressure and temperature, ascends through the Earth’s crust, bringing with it diamonds that formed under similar high-pressure conditions. Kimberlite, upon solidification, traps these diamonds within the rock, where they remain until mining operations bring them to the surface.

Kimberlite Pipes: The Primary Source of Diamonds
The most famous source of diamonds, kimberlite pipes, are vertical geological formations that originate from deep beneath the Earth’s surface. These pipes are often cylindrical in shape, and their formation is associated with ancient volcanic eruptions. As the magma ascends through the Earth’s crust, it forms a narrow, funnel-like conduit. Over millions of years, erosion and weathering can expose kimberlite pipes, allowing diamond mining to occur.

These pipes are typically surrounded by much older and harder rocks, often making it difficult to access the diamonds. The kimberlite itself can also contain other valuable minerals such as garnet, ilmenite, and chromite, but it is the diamonds embedded within the kimberlite that are the primary target of mining efforts.

The Role of Kimberlite in Diamond Mining
Kimberlite plays a crucial role in the discovery and extraction of diamonds. Mining operations often target kimberlite pipes, as they are the most reliable source of diamonds in nature. The process of mining kimberlite involves:

Exploration: Geologists and prospectors search for kimberlite pipes using various techniques such as aerial surveys, satellite imagery, and ground sampling. The distinctive blue or green colour of the rock can also be used as an indicator of its presence.

Extraction: Once a kimberlite pipe is located, it is typically extracted through either open-pit or underground mining techniques. Open-pit mining involves removing large quantities of surface material to reach the kimberlite layer, while underground mining involves digging shafts to reach deeper deposits.

Processing: After kimberlite is extracted, it is crushed and sorted to separate the diamonds from the surrounding rock and other minerals. This is typically done through a combination of mechanical crushing, gravity separation, and sometimes, advanced techniques such as X-ray sorting or dense media separation.

Geological and Geographic Distribution of Kimberlite
Kimberlite is found in specific geographic regions, primarily in ancient cratons—stable areas of the Earth’s crust that have remained relatively undisturbed for billions of years. These regions include:

Africa: The continent is home to several large kimberlite pipes, including the famous Kimberley Mine in South Africa, which has been historically significant for diamond mining.
Russia: Russia contains several diamond-producing kimberlite pipes, particularly in Siberia, with the Yakutia region being a major source of diamonds.
Canada: The discovery of kimberlite pipes in Canada’s Northwest Territories led to the establishment of large-scale diamond mining operations, such as the Ekati and Diavik mines.
Australia: The Argyle Mine in Western Australia, which produces significant quantities of pink and red diamonds, is also a notable source of kimberlite.
While kimberlite pipes are present on all continents, the largest and most significant diamond-producing regions are found in Africa, Russia, and Canada.

Importance and Rarity of Kimberlite Pipes
While kimberlite pipes are the main source of natural diamonds, they are relatively rare. The conditions required for kimberlite formation are very specific, and only a small number of these pipes have been discovered and mined for diamonds. Geologically speaking, kimberlite pipes are often formed in ancient and stable parts of the Earth’s crust, where volcanic activity can reach the depths necessary for diamond formation.

The rarity and difficulty of accessing kimberlite pipes make diamonds sourced from these pipes valuable commodities. The unique geological conditions under which kimberlite forms, combined with the rarity of pipes, contribute to the high value of diamonds that originate from these sources.

Kimberlite vs. Lamproite: Other Sources of Diamonds
While kimberlite is the most well-known source of diamonds, lamproite is another type of volcanic rock that can also host diamonds. Lamproite is less common than kimberlite, but some significant diamond deposits, such as those at the Argyle Mine in Australia, have been discovered in lamproite pipes. However, kimberlite remains the more prominent and studied source of diamonds worldwide.