• Project Overview
• Development
• Joint Venture Agreement

Mining Lease

Gahcho Kué falls under the AK group of renewable 21-year mining leases and mineral claims. This is currently the best mining contract in the industry. Most other mineral claim contracts are now being converted into 21-year mining leases.

Site Details

The Gahcho Kué diamond project is located on federal land in Canada's Northwest Territories and is held by the Gahcho Kue Joint Venture under renewable 21 year leases. The project is on a 74,128 acre site located at Kennady Lake, approximately 300 kilometres northeast of Yellowknife and 90 kilometres east of De Beers' Snap Lake diamond project.

Estimated Resources

Gahcho Kué has estimated resources in excess of 46.5 million carats. The mine is expected to produce more than 3 million carats a year at a projected value of US$101 per carat (net of marketing costs). The project will have a lifespan of more than 24 years. Gahcho Kué is scheduled to begin production in 2011.

Resources Statement

(Based on De Beers 2005 Technical Study and July 2006 DTC Price Book)

Geology of Kimberlite Pipes

The Gahcho Kue kimberlite cluster is in the southeast slave craton. The area was glaciated repeatedly during the Pleistocene, most recently by the Laurentide ice sheet. The Laurentide ice sheet began to recede about 18,000 years ago and the icet retreated past the Gahcho Kue project area between 9,000 and 9,500 years ago. Four main pipes comprise the Gahcho Kue kimberlite cluster - 5034, Hearne, Tuzo and Telsa. The 5034 kimberlite is an irregular hypabyssal root zone. Hearne and Tesla are transitional diatremes and root zones. Tuzo is the deeper part of a diatremes zone. At present, Telsa is not included in the Gahcho Kue mineable resource because of its smaller size (0.4 ha) and lower grade. However, it may be exploited towards the end of the project life. The shapes and internal geology of each of the kimberlite pipes has been based on the logging of the available drill core. The external shapes and internal geology of each body was modeled in three dimensions using GEMCOM. Both internal and external models were updated after each subsequent drilling program in 2001, 2002, 2004 and 2005. Hearne, 5034 and Tuzo have contrasting pipe shapes. These three pipes have the potential to be economic.

5034 pipe

• Located near the corner of the site under and adjacent to Kennady Lake.
• The first kimberlite discovered at Gahcho Kué, abundant with HK (hypabyssal kimberlite)
• Surface dimension of approximately 120 by 180 metres
• Total surface area of approximately 1.95 hectares
• Subdivided on the basis of internal geology into four lobes

Hearne pipe

• Consists of a northern and southern lobe
• Total surface area of approximately 1.5 hectares
• Includes Hearne South, a roughly circular pipe abundant with TKB (tuffisitic kimberlite breccia)
• Includes Hearne North, a narrow elongate pipe abundant with HK and TKB

Tuzo pipe

• Total surface area of approximately 1.4 hectares
• Abundant with TKB.
• Consists of Zone A and B kimberlite, which is 20 to 100 metres in depth and has inferred resources of 2.6 million tonnes
• Consists of Zone Bg kimberlite with some Zone B and C kimberlite, which is 100 to 200 metres in depth and has inferred resources of 3.5 million tonnes
• Consists of Zone C kimberlite with some Zone B and Bg kimberlite, which is 200 to 300 metres in depth and has inferred resources of 4.1 million tonnes
• Additional 4.7 million tonnes of kimberlite on the western side of the pipe which is 300 to 360 metres in depth