The summer drilling program, which covered 710 meters across six holes, unearthed a fancy yellow diamond just 25 meters below the mine’s final planned level. Additionally, the exploration confirmed Burgundy’s belief that the Misery ore body is more extensive at deeper levels.
“We’re excited to share that these findings indicate the Misery pipe—a high-value ore source requiring minimal development capital—could remain productive long beyond the 2026 end date,” said Burgundy CEO Kim Truter in a press release.
This potential extension comes as other diamond mines in the region face imminent closures. Rio Tinto’s Diavik mine is scheduled to close in 2026, while De Beers’ Gahcho Kué mine is projected to run until 2028. Ekati’s Sable open pit is set to wind down this year, although the Point Lake open pit could continue production until 2029.
Burgundy acquired the Ekati mine in March 2023 after purchasing its previous owner, Arctic Canadian Diamond, for $136 million. The mine is located hundreds of kilometres northeast of Yellowknife and is accessible only by an airstrip and a winter road.
Expansion Plans and Upcoming Updates
Burgundy plans to begin drilling and bulk sampling the Southwest extension of the Ekati mine’s main ore body in the fourth quarter of this year. An updated resource and reserve estimate for Misery and the Southwest extension is expected within the next six months, with a formal extended mine plan slated for release in early 2025.
Ekati’s current mine plan is based on ore reserves of 15.8 million carats. Burgundy has also developed a conceptual mine plan that could extend the mine’s life until 2040. This plan includes extending the Misery pipe, moving underground at Sable, developing the Fox deposit, and potentially pursuing underwater remote mining at Point Lake.
Despite the positive news, Burgundy shares fell 7.6% on Tuesday to A$0.12, valuing the company at A$170.5 million. The stock has traded in a 52-week range between A$0.12 and A$0.24.
