Canadian private company Arctic Blue Diamonds has secured an 89.7% controlling interest in the WO diamond project, home to one of the country’s biggest undeveloped diamond-bearing kimberlites, DO27.

The acquisition was completed through two transactions; including a 72.1% stake from Peregrine Diamonds, a subsidiary of De Beers Canada, and a 17.6% stake from Archon Minerals.

Arctic Blue will now operate the WO joint venture and hold the diamond marketing rights for any future production.

Located 23 km from the Diavik diamond mine and 53 km from Ekati, the WO project includes eight mining leases covering 5 815 ha in a region regarded as Canada’s premier diamond mining corridor.

The DO27 kimberlite, which lies beneath a shallow lake, has a surface area of about 9 ha, making it one of the largest known kimberlites in the country. By contrast, kimberlites mined at Diavik and Ekati typically measure less than 3 ha.

Drilling on the site has delineated an indicated mineral resource of 19.5-million tonnes grading 0.94 ct/t, containing 18.2-million carats of diamonds. An additional 6.5-million to 8.5-million tonnes beneath the known resource could represent further upside, though that potential remains conceptual.

Independent valuations conducted by WWW International Diamond Consultants estimated the average diamond price at $72/ct in 2008. Based on broader market trends and pricing indices, that figure has since been revised upward to $90/ct to $100/ct.

“As some of the existing diamond mines approach the end of their economic lives, DO27 offers the opportunity to extend the life of the existing diamond plants by producing a very high-grade diamond concentrate of over 80 ct/t suitable for shipment to existing diamond recovery facilities, or alternatively to a purpose-built facility in Yellowknife,” said Arctic Blue executive chairperson Patrick Evans.

He highlighted the geological characteristics of DO27 and the potential for underwater remote mining (URM) to extract ore efficiently with minimal surface disruption.

“The extremely soft nature of the DO27 ore also opens the potential for the deployment of URM technology. Kimberlites with soft, low-density ore can be mined most efficiently using URM systems. Besides offering exceptionally low capital and operating cost opportunities, URM is the most sustainable form of mining, with minimal impact on the environment,” Evans said.

URM technology, developed by IHC Mining of The Netherlands, has already been tested in Canada. In 2018, Dominion Diamond Mines began collaborating with IHC on URM deployment at Ekati. The company has since constructed a full-scale crawler system capable of operating at water depths of up to 400 m.

While the WO project remains on care and maintenance, Arctic Blue plans to begin environmental, engineering, and geological studies to evaluate development options, including URM integration and production of high-grade concentrates for off-site processing.

Arctic Blue is part of the Arctic Blue Group, which also operates Arctic Blue, an online retailer specialising in fluorescent Canadian diamonds.