GREY:PGDIF - Post by User
Comment by
ekimon Sep 06, 2017 6:27pm
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Post# 26663761
RE:DDC Ekati-Fox
RE:DDC Ekati-FoxDid you read footnote #4?
That PEA says that the project loses money if they don't do the diamond price escalation during the LOM.
All these mine extenders are scrapping the bottom of the barrel. (DO27) included and all of them are only constructed and made assuming the supply/demand of rough diamonds makes rough diamonds go up and not down over the next 2 decades.
Both Jay Pipe and this project in this news release both also use the language of deferral of reclamation costs of Ekati as a major driver of economics.
DO-27 is closer to Diavik and the technical report says the distance is 23 km's. The technical report doesn't reference the distance to Ekati.
Diavik was recently extended by a couple of years, but that also comes with a nasty production tail where the last couple of years are from filling the hungry mill.
DO-27 might end up feeding Diavik even for just a year. If they can figure out some economics with it...maybe in conjuction with deferred reclamation payments as seems standard up there.
LONG...PGD
EKIM