Burgundy Diamond Mines has released its 2024 Mineral Resources and Ore Reserves update for the Ekati diamond mine, showing minor depletion consistent with active mining operations. The report underscores the mine’s continued operational strength and adherence to industry standards.
- Mineral Resources decreased by 2% (Indicated) and 0.4% (Inferred) due to mining
- Probable Ore Reserves depleted by 8% following extraction at key sites
- Mining ongoing at Sable open pit, Misery Main underground, and Point Lake open pit
- Estimates comply with JORC Code and ASX Listing Rules
- Comprehensive geological and metallurgical data support resource confidence
Overview of the 2024 Resource Update
Burgundy Diamond Mines Limited (ASX: BDM) has published its annual Mineral Resources and Ore Reserves (MROR) statement for the Ekati diamond mine as of 31 December 2024. The update reflects a modest depletion in both Mineral Resources and Ore Reserves, attributable to ongoing mining activities at the Sable open pit, Misery Main underground, and the recently initiated Point Lake open pit.
The company reports a 2% reduction in Indicated Mineral Resources and a 0.4% decrease in Inferred Resources, alongside an 8% depletion in Probable Ore Reserves. These figures are consistent with the expected drawdown from active extraction and processing during the year.
Technical Rigor and Reporting Standards
The MROR estimates are prepared in strict accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition) and comply with ASX Listing Rules. This ensures transparency and reliability for investors and stakeholders.
Supporting the resource estimates is a robust dataset encompassing extensive drilling campaigns, geological modelling, and metallurgical test work. The Ekati mine benefits from over 25 years of operational history, providing a wealth of production data that validates the geological and grade models. Sampling techniques include diamond core and reverse circulation drilling, with recent samples processed at the accredited Saskatchewan Research Council Diamond Laboratory, ensuring quality control and accuracy.
Mining Operations and Resource Classification
Mining at Ekati continues across multiple fronts. The Sable open pit is approaching completion, with Point Lake undergoing initial stripping. Underground operations at Misery Main employ sublevel retreat mining, while Fox underground is planned for incline cave mining based on prefeasibility studies.
Mineral Resources are classified as Indicated and Inferred, with no Measured category reported. Ore Reserves are classified as Probable, derived from Indicated Resources after accounting for mining dilution and recovery factors. The report details mining assumptions such as dilution rates (2% for open pits, 7-12% for underground), mining recoveries (94-98%), and cut-off grades aligned with processing plant configurations.
Environmental and Social Compliance
Ekati operates under a comprehensive Environmental Agreement with Canadian authorities, including the Government of Northwest Territories and Fisheries and Oceans Canada. The mine maintains multiple environmental management plans and monitoring programs, ensuring adherence to regulatory requirements and community agreements. Burgundy Diamond Mines emphasizes its commitment to sustainable operations and positive stakeholder relationships.
Outlook and Strategic Positioning
With a vertically integrated business model spanning mining to diamond sales, Burgundy Diamond Mines leverages its Ekati asset as a cornerstone. The 2024 MROR update confirms the mine’s stable resource base despite ongoing depletion, underpinning the company’s long-term production potential. The detailed technical disclosures and competent person endorsements reinforce confidence in the resource estimates.
Looking ahead, Burgundy’s focus on operational efficiency, resource optimisation, and market positioning will be critical as it navigates evolving diamond market dynamics and regulatory landscapes.
Bottom Line?
Ekati’s steady resource base amid active mining signals resilience, but future updates will be key to tracking Burgundy’s growth trajectory.
Questions in the middle?
- How will diamond market conditions impact future resource valuations at Ekati?
- What are the timelines and capital requirements for completing the Point Lake open pit?
- Are there plans to upgrade Inferred Resources to Indicated or Measured categories through further drilling?