Arctic Blue Diamonds Ltd., a private diamond company based in Canada’s Northwest Territories, has acquired an 89.7% controlling interest in the WO Diamond Project, which includes the DO27 kimberlite pipe.
The interests were purchased from Peregrine Diamonds Ltd. (a subsidiary of De Beers Canada Inc.) and Archon Minerals Ltd., representing 72.1% and 17.6% respectively.
Arctic Blue, part of the Arctic Blue Group, also operates an online platform retailing fluorescent Canadian diamonds. As operator of the WO Joint Venture, the company holds marketing rights for any future diamond production from the site.
DO27 Kimberlite Resource Overview
The WO Project comprises eight mining leases covering 5,815 hectares in the Lac de Gras region, approximately 23 km from the Diavik Diamond Mine and 53km from the Ekati Diamond Mine. The DO27 pipe lies beneath a shallow lake and covers a surface area of approximately 9 hectares, placing it among the larger known kimberlite pipes in Canada by surface area. In comparison, kimberlites at Diavik and Ekati typically range from less than 2 to 3 hectares.
Drilling at DO27 has included 114 core holes totalling 24,185 metres and 46 large diameter reverse circulation holes totalling 8,840 metres. Based on this work, the current Indicated Mineral Resource is estimated at 19.5 million tonnes containing 18.2 million carats, with a grade of 0.94 carats per tonne.
A further exploration target has been identified below the defined resource, estimated at 6.5 to 8.5 million tonnes grading between 0.8 and 1.0 carats per tonne. This target is conceptual in nature and would require additional drilling to determine whether it can be classified as a mineral resource.
Diamond Valuation and Processing Considerations
Independent valuations of diamonds from DO27 were carried out by WWW International Diamond Consultants Ltd. in 2006 and 2007. The 2008 resource estimate was based on a US$72 per carat valuation. A subsequent report from 2014 indicated an upward trend in rough diamond prices, with the average price for the DO27 parcel projected to have increased to between US$90 and US$100 per carat.
The kimberlite at DO27 is geologically distinct due to its soft texture and low density. Testing has shown that approximately 90% of the ore in the upper 60 metres can be removed as fines through washing, leaving a concentrate suitable for off-site processing. This method reduces the volume of material transported and may have implications for project design and operating logistics.
Assessment of Underwater Mining Technology
Given the characteristics of the ore, Arctic Blue is assessing the potential deployment of Underwater Remote Mining (URM) technology. URM, developed by IHC Mining (a division of Royal IHC), is a remote system for continuous underwater extraction of kimberlite using a crawler with a drum cutter. Ore is pumped to the surface via a vertical pipeline for further treatment.
URM technology has previously been explored at the Ekati Diamond Mine, with various components tested over the past seven years. IHC Mining stated in 2022:
“The underwater mining crawler is a remote operated continuous mining machine, equipped with the latest underwater control and positioning equipment. The ore is directly excavated with a drum cutter in small layers and eliminates the need for blasting explosives. From the crawler, the ore is pumped to the surface of the flooded pit via a vertical pipeline system to the Launch and Recovery Platform, from where the ore is transported further to a dewatering plant. The crawler system is capable of operating at a water depth of up to 400 meters.”
Development Outlook
While the WO Project remains on care and maintenance, environmental, geological, and engineering studies are planned to evaluate the development potential of the DO27 kimberlite. This includes reviewing the viability of producing a concentrated ore stream for off-site recovery and the potential application of URM technology.
Commenting on the acquisition, Arctic Blue Executive Chair Patrick Evans said:
“As some of the existing diamond mines approach the end of their economic lives, DO27 offers the opportunity to extend the life of the existing diamond plants by producing a very high-grade diamond concentrate of over 80 carats per tonne suitable for shipment to existing diamond recovery facilities, or alternatively to a purpose-built facility in Yellowknife.”
He added:
“The extremely soft nature of the DO27 ore also opens the potential for the deployment of Underwater Remote Mining (URM) technology. Kimberlites with soft, low-density ore can be mined most efficiently using URM systems. Besides offering exceptionally low capital and operating cost opportunities, URM is the most sustainable form of mining, with minimal impact on the environment.”
For jewellers and stakeholders across the industry, Arctic Blue’s acquisition of the WO Project signals potential for future Canadian diamond supply, particularly as existing mines near closure. The outcome of upcoming assessments will determine whether DO27 advances to commercial production.
