Main Areas for Diamond Exploration in 1997

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Abstract

In the 1960s, several mining companies started systematically exploring for diamonds in Canada. Today, in addition to the Ekati mine, other diamond projects could reach production within few years. This map shows the location of the main Canadian diamond exploration areas to the year 1997.

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History of the Diamond Exploration in Canada

In North America, isolated discoveries of diamonds at the surface were reported during the first half of the 19th century in the U.S. Midwest. A diamond was found in glacial drift in Ontario in 1883. In 1899, when W. H. Hobbs (University of Wisconsin) put forward the hypothesis that diamonds had been carried by glaciers in North America, the history of ice flow indicated that the source likely was located in the James Bay Lowlands.

In the 1960s, several mining companies started systematically exploring for diamonds in Canada. The South-African company, DeBeers, for example, was among these companies. Several other companies followed. In September 1991, Dia Met and BHP discovered the first kimberlite in the Lac De Gras area in the Northwest Territories. This discovery was the result of a decade of exploration work involving several different factors such as the mineral indicators, ice advance and retreat patterns and magnetic anomalies. This discovery triggered an unprecedented surge in exploration for diamonds in Canada, and several of these have been successful.

Today, in addition to the newly opened Ekati mine of BHP Diamonds Inc. and Dia Met Minerals Ltd., other diamond projects could reach production within a few years, including the Diavik project of Aber Resources Ltd. and Rio Tinto, also located in Lac de Gras area. The high level of exploration activity should bring further discoveries. Canada will become one of the world's main diamond producers.

Indeed, the output of the Ekati mine is expected to reach three to four million carats per year, which is approximately 3% of the world production; and the Diavik mine may produce eight million carats per year by 2002. If this prediction remains valid, Canada could become the world's sixth largest diamond producer, with 10% of the world production.

Ekati Diamond Mine, First Diamond Mine in Canada

On October 14th 1998, the Ekati Diamond Mine, located in the Lac de Gras area, officially opened. "Ekati" is a native language word for "fat". White quartz rock is found in abundance in the area where the new diamond mine is located. Dogrib and Dene elders compare the white veins that run through the rock to caribou fat. In native culture, caribou fat is seen as a symbol of great value. What better name could have been given to the first Canadian diamond mine?

The Ekati Diamond Mine is a joint venture of the Canadian partners Charles E. Fipke, Stewart Blusson and DiaMet Mineral Ltd. with the Australian company Broken Hill Proprietary (BHP) Diamond Inc.

This story began in 1981 when the geologist Charles Fipke found diamond mineral indicators in the Mackenzie Range at the Yukon / Northwest Territory border. As the exploration continued through the years, an extremely high concentration of diamond indicators were detected in 1989 in the Lac de Gras area, suggesting the location of a diamondiferous kimberlite pipe. Later, in 1991, diamonds were discovered in a sample taken at Point Lake.

After more sampling and analysis, a Federal environment review process was initiated in late 1994 and an Environmental Assessment and Review Panel was formed. It was recognized that particular attention needed to be brought to the environment because of the fragility of this land.

The Ekati Diamond mine is located in the barren land of the Northwest Territories about 300 kilometres Notheast of Yellowknife. Dwarf birch, willows, water sedges, cotton grasses, green alders, Labrador tea and many species of berries cover this land. Despite its cold climate, this sub-arctic area provides habitat for several mammal species. Caribou herds migrate through the area each spring and fall. Grizzly bears, red and arctic foxes, wolves, wolverines, arctic hares, ptarmigans and ground squirrels share the land. In the numerous lakes located within the claim area, swim trout, arctic graylings, round whitefish, longnose suckers and slimy scupins. Golden and bald eagles, hawks, peregrine falcons, short-eared owls, perching birds and waterfowl are also part of the local fauna.

Beside the environmental studies, several agreements were signed with the federal and territorial governments, and with native groups. Provisions under these agreements include, for example, a target of northern resident employment of 62% of the total employment, with an aboriginal employment of half of the northern workforce. Once these agreements were signed, construction started. In this area, long distance roads do not exist, and so surface transportation can occur only from mid January to mid April on a winter ice road. When the ice road is not operational, air transportation takes over. To build the Ekati site, thousands of truckloads of construction material and fuel were shipped on the winter ice road.

Diamond exploration and exploitation are very expensive projects. The total investment for Ekati is estimated at $700 million U.S. including all projects costs from the exploration to the start of the production. But the Ekati mine is expected to produce 3.5 to 4.5 million carats of rough diamonds per year, which are about 4% of the current global production by weight and 6% by value.

At the Ekati Mine, mining kimberlite, ore and treating material activities are performed. Five separate kimberlite pipes (Panda, Koala, Fox, Sable and Misery) will be open pit mined and later, because of the higher value of their ore; underground mining will be done at Panda and Koala.