Burgundy Diamonds believes it will continue to produce rough from a portion of its Ekati mine for another 15 years, nearly a decade longer than the two other deposits in Canada’s Northwest Territories.
In its most recent life-of-mine update, which it released last week, Burgundy said it would begin development of the underground portion of Fox, one of its two operational pits, in mid-2026. First production is set to take place in the second quarter of 2029. The new portion is likely to produce 11.6 million carats by its end of life in 2040, for total revenue of $3.64 billion.
Meanwhile, it has extended the Misery Pit’s underground portion by 2.5 years, which will see it produce through 2027, Burgundy said. The miner is also investigating the potential to prolong output past that year, it added. While the new mine plan includes a 900,000-carat decline in indicated resources — those it knows are present based on drill holes — it also states a 200,000-carat increase in inferred resources — those it believes are present based on the indicated diamonds at Misery. Over the remainder of its lifespan, that area of the deposit is set to produce 6.7 million carats of rough.
Burgundy has carried out bulk sampling on another part of the mine, Point Lake. The miner recovered 67,757 carats from that region, with an average value of $52 per carat. The per-carat price is 27% lower than the previous estimate, due to lower-grade ore and the current downturn in demand. Because of the lower pricing, the company will defer mining until the middle of next year, it added.
There are two other mines in the area. Rio Tinto-owned Diavik, is expected to close next year, while Gahcho Kué, a joint venture between De Beers and Mountain Province, will shut in 2031.
Image: The Ekati mine. (Burgundy Diamonds)
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