Saturday, April 25, 2009
Wednesday, April 22, 2009
What is the Victor Diamond Project?
The Victor Diamond Project is a massive diamond mine being proposed by the DeBeers diamond conglomerate in northeastern Ontario near Attawapiskat on James Bay. This region is part of one of the largest, intact wilderness areas left on earth and currently has no industrial development. There are several First Nations communities in the area that are accessible by winter road only. This wilderness supports abundant wildlife, including threatened woodland caribou, healthy fisheries, clean and plentiful water, and sustains the traditional activities of First Nations. How big would the mine be?
| The mine site would cover an area of 5,000 hectares. The open pit would be 220 metres deep and 1-2 kilometres wide. The ecological footprint of the mine (the area its operations will impact), however, is much larger. Up to 260,000 hectares -- an area roughly four times the size of the City of Toronto -- will be impacted by dewatering, the pumping of water out of the pit, which is likely to massively change water flows above and below ground throughout the area. There is a good chance that this project will be expanded if more diamonds are discovered in the region. |
Merlin Diamond Project
North Australian Diamonds Limited acquired 100% of Mining Lease 1154 covering the former Merlin Diamond Mine operations in the Northern Territory from Ashton Mining Limited (a wholly owned subsidiary of the Rio Tinto Group) in 2004. This acquisition built on the Merlin Orbit exploration tenements which had been previously acquired from Rio Tinto.
The project is situated approximately 75km SSE by road from McArthur River, 80km due south by air from the town of Borroloola and 720km SE of Darwin in the Gulf Region of the Northern Territory.
The Merlin diamond field comprises 14 kimberlite pipes, grouped into four clusters. Twelve of the pipes, all subject to either open pit mining or testing, are located within the mineral lease MLN1154, which was granted on 15th June 1998.
Merlin diamonds are known for the brilliant white colour and large size. The largest diamond ever found in Australia, a 104.73 carat white gem quality stone, was recovered from Merlin and was valued at approximately US$525,000 in 2002. Recently NADL sold a 10.60ct gem stone for A$201,672.
In line with world increases in diamond prices a recent revaluation of Merlin goods indicates a 30% increase in price to approximately US$140 per carat. The prognosis for rough diamond prices over the next 10 years is very favorable with annual increases of 5% predicted due to declining production from current world reserves and demand for diamonds increasing.
