Post by Zoinkers on May 23, 2006 4:33:06 GMT -5
UPDATE 2-De Beers explores ways to keep Snap Lake on track
Mon Apr 24, 2006 5:02 PM ET
(Recasts with De Beers comments, adds closing stock prices)
By Rachelle Younglai
TORONTO, April 24 (Reuters) - De Beers Canada is looking for ways to get supplies and equipment to its Snap Lake diamond project in the Northwest Territories so the mine can start producing on schedule in 2007.
De Beers is being forced to adjust plans for its first diamond mine in Canada as the temporary winter road used to transport crucial supplies to remote mining sites like Snap Lake has had to close earlier than expected because of unseasonably warm weather.
The winter road, which extends some 570 km (356 miles), runs mostly along frozen lakes. This season, the ice was never thick enough for the road to reach its full load capacity. Then the ice melted earlier than expected, making it unsafe for heavy trucks.
"The project team is putting a plan together, which will hopefully allow the project to still start up according to the original date," said De Beers spokeswoman, Linda Dorrington.
"What they are trying to do is to look for ways to get the necessary equipment up to site, so that the necessary work can take place so that the overall project schedule remains the same."
Dorrington said that this will "obviously impact cost," as equipment that would have been trucked up will now have to be flown in.
Snap Lake, located 220 km northeast of Yellowknife, the capital of the Northwest Territories, is expected to start producing in 2007. Full production is seen at 1.5 million carats a year.
ROAD CLOSURE AFFECTS GAHCHO KUE
The premature ice-road closure also affected De Beers' joint venture project Gahcho Kue, about 300 km from Yellowknife.
About 600 of the 2,200 truckloads of material that De Beers had intended to transport did not make it to the company's two sites in the Northwest Territories.
The winter drill program was "not successfully completed," but De Beers said this will not delay the overall schedule.
"This is not going to impact the overall project schedule. We believe that the objective of this particular program can be fulfilled," said Dorrington.
De Beers, which is 45 percent owned by Anglo American Plc (AAA.L: Quote, Profile, Research), halved the core drilling program to 20 holes from 42 holes because of reduced access to the site. The company also cut the number of large diameter holes it planned to drill.
For Mountain Province Diamonds Inc. (MPV.TO: Quote, Profile, Research), which holds a 44.1 percent stake in the project, and Camphor Ventures Inc. (CFV.V: Quote, Profile, Research), which holds a 4.9 percent stake, the news seemed to drive the stock down.
Shares of Mountain Province dipped as low as C$3.80 before closing at C$4.40 on the Toronto Stock Exchange, for a loss of 23 Canadian cents, or 5 percent. Camphor closed down 7 Canadian cents at C$1.45 on the TSX Venture Exchange.
"The failure of the winter drill program to meet expectations is disappointing," the chief executive of Mountain Province, Patrick Evans, said in a statement.
A number of factors contributed to failure, the company said and an investigation has been launched by the joint venture partners.
The environmental assessment process is proceeding according to schedule.
($1=$1.14 Canadian)
© Reuters 2006. All Rights Reserved.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes.
Reuters does not endorse the views or opinions given by any third party content provider.
Mon Apr 24, 2006 5:02 PM ET
(Recasts with De Beers comments, adds closing stock prices)
By Rachelle Younglai
TORONTO, April 24 (Reuters) - De Beers Canada is looking for ways to get supplies and equipment to its Snap Lake diamond project in the Northwest Territories so the mine can start producing on schedule in 2007.
De Beers is being forced to adjust plans for its first diamond mine in Canada as the temporary winter road used to transport crucial supplies to remote mining sites like Snap Lake has had to close earlier than expected because of unseasonably warm weather.
The winter road, which extends some 570 km (356 miles), runs mostly along frozen lakes. This season, the ice was never thick enough for the road to reach its full load capacity. Then the ice melted earlier than expected, making it unsafe for heavy trucks.
"The project team is putting a plan together, which will hopefully allow the project to still start up according to the original date," said De Beers spokeswoman, Linda Dorrington.
"What they are trying to do is to look for ways to get the necessary equipment up to site, so that the necessary work can take place so that the overall project schedule remains the same."
Dorrington said that this will "obviously impact cost," as equipment that would have been trucked up will now have to be flown in.
Snap Lake, located 220 km northeast of Yellowknife, the capital of the Northwest Territories, is expected to start producing in 2007. Full production is seen at 1.5 million carats a year.
ROAD CLOSURE AFFECTS GAHCHO KUE
The premature ice-road closure also affected De Beers' joint venture project Gahcho Kue, about 300 km from Yellowknife.
About 600 of the 2,200 truckloads of material that De Beers had intended to transport did not make it to the company's two sites in the Northwest Territories.
The winter drill program was "not successfully completed," but De Beers said this will not delay the overall schedule.
"This is not going to impact the overall project schedule. We believe that the objective of this particular program can be fulfilled," said Dorrington.
De Beers, which is 45 percent owned by Anglo American Plc (AAA.L: Quote, Profile, Research), halved the core drilling program to 20 holes from 42 holes because of reduced access to the site. The company also cut the number of large diameter holes it planned to drill.
For Mountain Province Diamonds Inc. (MPV.TO: Quote, Profile, Research), which holds a 44.1 percent stake in the project, and Camphor Ventures Inc. (CFV.V: Quote, Profile, Research), which holds a 4.9 percent stake, the news seemed to drive the stock down.
Shares of Mountain Province dipped as low as C$3.80 before closing at C$4.40 on the Toronto Stock Exchange, for a loss of 23 Canadian cents, or 5 percent. Camphor closed down 7 Canadian cents at C$1.45 on the TSX Venture Exchange.
"The failure of the winter drill program to meet expectations is disappointing," the chief executive of Mountain Province, Patrick Evans, said in a statement.
A number of factors contributed to failure, the company said and an investigation has been launched by the joint venture partners.
The environmental assessment process is proceeding according to schedule.
($1=$1.14 Canadian)
© Reuters 2006. All Rights Reserved.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq and all other quotes delayed by at least 15 minutes.
Reuters does not endorse the views or opinions given by any third party content provider.