On July 25, the Snap Lake underground mine, located approximately 220 km northeast of Yellowknife, Northwest Territories, became De Beers’ first mine outside of southern Africa. On July 26, the open-pit Victor mine in northeastern Ontario became the first producing diamond mine in Ontario and the first in Canada outside the Northwest Territories. Each mine required capital expenditures of more than $1 billion to build.

Snap Lake is based on a 2.5-m-thick kimberlite dyke that dips an average of 12° to 15° under Snap Lake from its northwest shore. Primary mine access is via a 5-mwide by 4.5-m-high decline. Mining is based on a modified room-and-pillar method using low-profile, trackless mining equipment. At full production, the mine will produce 3,150 mt/d. Pillars will be systematically extracted and replaced with a paste backfill made of processed kimberlite and cement.

Snap Lake ore is crushed underground and transported to the surface processing plant via conveyor. Diamond production is expected to total 1.4 million carats/year at a value of $144/carat, subject to fluctuating values in the diamond market. Mine life is projected at 20 years.

The Snap Lake kimberlite was discovered in 1997 by Winspear Resources. De Beers Canada bought the project in the fall of 2000 and received permits to build and operate the mine in May 2004. Construction started with the winter road in 2005.

Surface construction has included an automated ore processing plant capable of handling 3,150 mt/d, water and sewage treatment plants, a utilities building to power the site, and an airstrip capable of landing 737 jets and Hercules C-130 transport planes. Travel to Snap Lake is only possible by airplane for all but six to eight weeks of the year. During February and March, thousands of liters of fuel and other supplies are hauled from Yellowknife to the site via a winter road.

By June 31, 2008, $1.1 billion had been spent on construction and operation of the mine. Of that total, $775.8 million was spent with NWT-based contractors and suppliers, including $520.8 million with Aboriginal businesses or joint ventures. At full operation, Snap Lake will employ about 560 workers, with about 260 people at the site at any given time. Most mine production staff work two-week rotations in and out of the site.

Victor mine development has focused on one of 18 kimberlite pipes discovered on the property, of which 16 are diamondiferous. The pipe has a surface area of 15 ha and is, in fact, two pipes that coalesce at the surface. Conventional open-pit mining utilizes 100-mt trucks, large frontend loaders, dozers, and other support equipment. At full production, the mine will produce about 7,000 mt/d of ore. Mine life is projected at 12 years, while total project life is planned at 17 years. Core drilling and bulk sampling programs are ongoing and have the potential to extend mine life.

Victor is designed to produce 600,000 carats/year of diamonds at an average value of $419/carat. In addition to the mine and plant, site facilities include workshops, a warehouse, offices, fuel storage, a pit dewatering system, an accommodation complex, and an airstrip. Support services include potable water processing, sewage treatment, and waste management. The project is supported by winter road access for transportation of equipment and supplies. Personnel are transported to and from the site by air, with pick-up stops at the coastal communities and Timmins, Ontario.

Victor will employ about 375 people at full operation. The accommodation complex at the mine has 264 single rooms, recreational facilities, a library and internet access.

De Beers said it has signed impact benefit agreements for the Snap Lake mine with the Yellowknife Dene First Nation, the Tlicho Government, the North Slave Metis Alliance, and the Lutsel K’e and Kache Dene First Nation. For the Victor mine, impact benefit agreements are in place with the Attawapiskat and Moose Cree First Nations, and a Working Relationship Agreement has been signed with the Taykwa Tagamou Nation.

De Beers said it is also committed to supporting the secondary diamond industry in Canada. Under agreements with the governments of the Northwest Territories and Ontario, the company will make 10% of the diamonds from the Snap Lake and Victor mines, by value, available to provincially approved manufacturers that have successfully fulfilled the Diamond Trading Company’s client selection criteria.