(IDEX Online News) – Dominion Diamond Corporation announced that its board of directors has given its approval to proceed with development of the Jay Project, based on positive results of a feasibility study.

The Jay Project is located within the Buffer Zone Joint Venture Property, and is the most significant undeveloped deposit at Ekati, due to its large size and high grade.

Primary capital development costs, including construction of a water retention dike, roads and pumping infrastructure, is estimated at $329 million. Equipment costs are estimated to be $86 million, including haul trucks, one hydraulic shovel, four front-end loaders, three production drills, two dozers and other support equipment. The total initial capital cost to develop the Jay pipe is estimated at $647 million.

“Our strategy for the Ekati Mine is to develop new deposits in tandem with existing mining operations in order to increase the total value of the property,” said Dominion CEO Brendan Bell.

“The decision to proceed with Jay, combined with our earlier decision to proceed with the Sable project where construction of infrastructure has begun, are major steps towards the execution of this strategy,” said Bell. “Together these projects will add significant value to Ekati and will enable us to pursue other incremental growth opportunities near our existing operations.”

The company intends to complete construction of the all-season road to the shoreline of Lac du Sauvage in the 2018 fiscal year. Mining and processing of Jay kimberlite is expected to commence in the 2023 fiscal year.