Arctic Blue Diamonds Expands Portfolio with WO Diamond Acquisition

Arctic Blue Diamonds Ltd., a notable player in the diamond industry, recently made headlines with its acquisition of a controlling interest in the WO Diamond Project, specifically focusing on the high-grade DO27 kimberlite. This marks a significant move for the company, as it secures an 89.7 percent interest in the project.

Details of the Acquisition

Out of the total interest, Arctic Blue obtained 72.1 percent from Peregrine Diamonds Ltd., a subsidiary of the well-established De Beers Canada Inc., while an additional 17.6 percent came from Archon Minerals Ltd. This acquisition not only enhances Arctic Blue's portfolio but also positions it as a key player in the North West Territories (NWT) diamond market.

As the operator of the WO Joint Venture (WO JV), Arctic Blue is responsible for the diamond marketing rights of future production from this project, which covers an expansive land area of 5,815 hectares, located approximately 11 kilometers from the seasonal ice road, and lies in close proximity to major diamond mining operations, including the Diavik and Ekati Diamond Mines.

The Significance of DO27

The DO27 kimberlite is recognized as one of Canada's largest diamond-bearing kimberlites. With a surface area nearing 9 hectares, it sits beneath a shallow lake, making its mining and extraction less conventional compared to other sites.

In extensive resource drilling completed thus far, over 114 core holes and 46 large-diameter reverse circulation holes have yielded promising data, indicating a substantial resource base for Arctic Blue. The current indications show that the DO27 hosts approximately 19.5 million tonnes, translating to 18.2 million carats, with a grade of about 0.94 carats per tonne.

Future Potential and Exploration Opportunities

Beneath this confirmed mineral resource, additional exploration has identified target areas likely containing another 6.5 to 8.5 million tonnes, potentially yielding a grade of 0.8 to 1.0 carats per tonne. While these estimates remain profoundly conceptual and require further drilling to define a more concrete resource, the indications are promising for Arctic Blue as it seeks to expand its operational capacity.

As part of the ongoing assessment, Arctic Blue is actively exploring the potential of implementing the Underwater Remote Mining (URM) technology at the DO27 site. This mining method has been touted for its efficiency and reduced environmental impact, making it a fitting option for the DO27 ore, which is characterized by its soft and low-density nature. The adoption of URM could significantly lower both capital and operating costs, providing a sustainable mining approach.

IHC Innovations and Future Developments

The URM system, developed by IHC Mining, is already operational in various applications, and its adaptation for the diamond sector is an exciting prospect for Arctic Blue. The technology has been validated through rigorous testing, showcasing its capacity to operate efficiently at depths that traditional mining methods might find challenging.

IHC Mining’s ambitions include deploying a continuous mining crawler system capable of excavating kimberlites with a minimal ecological footprint. This development could revolutionize Arctic Blue's approach to mining at the DO27 site.

Closing Remarks

As Arctic Blue Diamonds navigates its new venture with the WO Diamond Project, the company stands poised for growth in a sector that is continually evolving. The combination of strong resources, innovative mining solutions, and strategic acquisitions places Arctic Blue in a favorable position for future success in the diamond industry. As they continue their assessments and preparations for the DO27 kimberlite project, stakeholders within the diamond community will be keenly watching Arctic Blue's next moves in this dynamic landscape.