Diavik project updateTORONTO, June 26 /CNW/ - Aber Diamond Corporation (T-ABZ, NASDAQ-ABERF)
presents its first quarter project update and current status, as presented in
the Company's First Quarter Interim Report to Shareholders, which will be
filed on Wednesday, June 27, 2001. The Interim Report will include the
management's discussion & analysis report and financial statements as per
Aber's press release dated June 20, 2001.
Diavik Project Update
The Diavik winter road transportation program was successfully completed.
By mid-April, 4,089 truckloads of fuel, construction materials and equipment
to support the Diavik 2001 construction were hauled over the approximately 425-
kilometre long seasonal ice road, 75% of which crosses frozen lakes. Materials
trucked to site included 2,239 loads of construction materials and mining
equipment, 1,067 loads of fuel, 700 loads of bulk material, including cement,
bentonite, and explosives, and 83 loads of concrete reinforcing steel. It was
a record year for the transportation program, with 7,800 truckloads of
supplies and equipment being shipped along the ice road by all users,
including Diavik, Echo Bay Mines, BHP and De Beers. This compared to the
previous record set of just below 3900 in 1999.
During the first quarter, rock was quarried, crushed and placed to create
laydown areas to receive and safely store the materials that arrived over the
winter road. Construction of a gravel foundation for the second construction
camp, which will accommodate an additional 700 workers, was completed, and
camp erection began as modules arrived over the winter road. Simultaneously,
construction began on the permanent sewage treatment plant. Additional access
roads to the dike area were constructed, as were dams for sedimentation ponds
to receive lake sediments to be dredged later this year.
Construction of the A-154 south dike began at the beginning of June, and
by mid-June, the suction dredge was fully assembled and in its final phases of
commissioning. In addition, erection of the steel framework for the processing
plant was underway.
The Project is progressing well and is significantly advanced from the
original feasibility study program, with a new official target date for
production of April 2003. The overall capital cost of $1.3 billion remains as
originally budgeted. Early indications are that there could be some reduction
in the capital cost, which will be clarified as construction progresses.
On February 1, 2001, the sale of Aber's interest in the Snap Lake Project
to De Beers Canada Mining Inc. for US$114 million (C$173 million) was
completed. This has provided the Company with additional equity funds for the
financing of Aber's 40% interest in the Diavik Diamonds Project. Aber is
currently arranging the remainder of its financing requirements.