Dominion Diamond Corp

Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) is a Canadian diamond mining company with ownership interests in two major producing diamond mines situated approximately 200 kilometers south of the Arctic Circle in Canada’s Northwest Territories. The Company operates the Ekati Diamond Mine (in which it owns a controlling interest), and also owns 40% of the Diavik Diamond Mine. It supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and is the world’s third largest producer of rough diamonds by value.The Diavik Diamond Mine is Canada’s largest diamond mine in terms of carat production. Diavik was established following the discovery of four diamond-bearing deposits, called kimberlite pipes, in 1994 and 1995.The mine site is located in Canada’s remote wilderness on a 20 square kilometer island, at Lac de Gras, Northwest Territories, approximately 300 kilometers from Yellowknife, the territorial capital, and just 220 kilometers south of the Arctic Circle.Diavik began producing diamonds in January 2003, and the Company sold its first rough diamonds in March that year. Diavik diamonds are highly regarded in the international commercial marketplace particularly for their white colour and good clarity.  Diavik’s exceptional grades make it one of the most valuable diamond mines in the world.

Dominion Diamond Corporation does not operate the Diavik Diamond Mine. The mine is operated by Diavik Diamond Mines (2012) Inc., a subsidiary of Rio Tinto plc, one of the largest and most highly regarded mining companies. Under the joint arrangement, Rio Tinto operates the mine and Dominion Diamond pays 40 per cent of the mine’s operating and capital costs while receiving 40 per cent of the mine’s diamond output. The mine plan is built on four diamond-bearing kimberlite pipes.  The three kimberlite pipes currently being mined, A154 South, A154 North, and A418, are very high grade.  The fourth pipe, A21, is currently in development with the first kimberlite production anticipated by the end of 2018.  As of December 31, 2015, the Diavik Mine had 32.0 million carats of proven reserves and 20.9 million carats of probable reserves for 52.8 million carats of total proven and probable reserves (reserves are for 100 per cent of the Diavik Mine, in which the Company has a 40 per cent ownership interest).