Harry Winston Diamond Corporation Announces New Mine Plan for Diavik Diamond Mine
November 26 2007 - 8:00AM
PR Newswire (US)
Delivers Extension of Mine Life to beyond 2020 TORONTO, Nov. 26
/PRNewswire-FirstCall/ -- Harry Winston Diamond Corporation (TSX:
HW, NYSE:HWD) announced today a new mine plan for the Diavik
Diamond Mine that delivers extended mine life to beyond 2020 and
accesses higher value diamonds in the underground portion of the
A-154 North kimberlite. The plan, which will be presented to the
Diavik joint arrangement participants in the near future, received
approval from Rio Tinto's Board of Directors in London on November
23. "The mine plan adds important new value to the Diavik Diamond
Mine and secures Harry Winston Diamond Corporation's future as an
important, long-term diamond producer in conjunction with its
growing retail business. Our unique diamond business is well
positioned to benefit as expanding diamond demand meets a lack of
supply," said Robert A. Gannicott, Chairman and Chief Executive
Officer of Harry Winston Diamond Corporation. As a result of the
new mine plan, underground mining is projected to begin at the
Diavik Diamond Mine in 2009. The diversity of both open-pit and
underground mining areas will secure Diavik's ability to maintain
production through seasonal and other changes. Underground mine
development of A-154S, A-154N and A-418 has been substantially
completed. At present, production principally comes from the A-154S
open pit with A-418 being prepared for open pit mining in 2008.
Since the mine began production in 2003, all production from A-154S
and A-154N has been open pit mining, and has resulted in the
extraction of 35.4 million carats of diamonds through July 31,
2007. Harry Winston Diamond Corporation expects to contribute
approximately CDN$218 million over the next two years in support of
the new mine plan. It is expected that the funds will come from a
combination of cash from operations and the corporation's existing
credit facility. In support of the new mine plan, the mine operator
is preparing a revised resource statement that is expected to be
delivered in the first calendar quarter of 2008. Harry Winston
Diamond Corporation has a 40% interest in the Diavik Diamond Mine,
with Rio Tinto plc of London having the 60% balance. About Harry
Winston Diamond Corporation Harry Winston Diamond Corporation
(NYSE: HWD; TSX: HW) is a specialist diamond enterprise with assets
in the mining and retail segments of the diamond industry. The
company supplies rough diamonds to the global market from its 40%
interest in the Diavik Diamond Mine, located in Canada's Northwest
Territories. The company's retail division, Harry Winston, Inc., is
a premier jewelry and timepiece retailer with salons in key
locations including New York, Paris, London, Beijing, Tokyo and
Beverly Hills. For more information, please go to
http://www.harrywinston.com/ or for investor information, visit
investor.harrrywinston.com. Information in this news release that
is not current or historical factual information may constitute
forward-looking information or statements within the meaning of
applicable securities laws. Statements concerning the new mine
plan, the expected life of the Diavik Mine, the timing and nature
of future mining activities at the Diavik Mine, the timing of a
revised resource statement and the estimated capital contributions
that will be required to be made by the Corporation in connection
with the new mine plan are forward-looking information.
Forward-looking information is based on certain factors and
assumptions regarding, among other things, mining, production,
construction and exploration activities at the Diavik Diamond Mine,
world and U.S. economic conditions, the resources and reserves at
the Diavik Diamond Mine, U.S./Cdn.$ exchange rates and the level of
worldwide diamond production. In making statements concerning the
Corporation's expected capital expenditure requirements in
connection with the new mine plan, the Corporation has used a
Canadian dollar and has assumed that construction will continue on
schedule and without undue disruption with respect to current
underground mining construction initiatives. While the Corporation
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Forward-looking information is subject to certain factors,
including risks and uncertainties, which could cause actual results
to differ materially from what we currently expect. These factors
include, among other things, the uncertain nature of mining
activities, risks associated with underground construction
activities, risks associated with joint venture operations, risks
associated with the remote location of the Diavik Mine site, risks
associated with regulatory and financing requirements, fluctuations
in diamond prices, changes in world economic conditions and the
risk of continued fluctuations in the Canadian/US dollar exchange
rate. The Corporation disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE:
HARRY WINSTON DIAMOND CORPORATION CONTACT: Nancy Murray, , (212)
245-2000; Kelley Stamm, , (416) 362-2237
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