Initially slated for closure by late 2025 following Burgundy's acquisition in February 2021, Misery Mine has emerged with promising prospects. Recent assessments indicate a larger ore body than originally estimated, prompting Burgundy to announce targeted drilling initiatives for life extension and geotechnical studies.
The mining company has identified two specific drill targets, including one previously unaccounted for in Ekati's mineral reserves. Misery Mine, known for producing approximately 3 million carats annually, plays a pivotal role in Ekati's operations, contributing significantly to its production value estimated at approximately $235 million per year.
"This mine represents an exceptional asset capable of generating around A$350 million (US$235 million) annually from just over a million tonnes of ore," highlighted Kim Truter, CEO and Managing Director of Burgundy. "Increasing our ore declaration through targeted drilling efforts will substantially enhance its value."
Originally transitioning to underground operations in 2019 and achieving commercial production in 2021, Misery Mine has historically produced over 27 million carats, including fancy yellow stones. Burgundy acquired the mine, located 125 miles south of the Arctic Circle, for $136 million from Arctic Canadian Diamond Company, which took ownership in February 2021 following Dominion Diamonds' insolvency filing.
The ongoing exploration and expansion efforts at Misery Mine underscore Burgundy's commitment to maximizing the potential of Ekati's significant diamond resources, bolstering its position in the global mining industry.
