Burgundy is planning to extend the lifespan of its Misery underground mine, part of the Ekati deposit located in the Northwest Territories, Canada.
Initially slated for closure in late 2025, the future of Misery changed when Burgundy acquired it in February 2021.
The Australian mining company recently announced on July 10 that they have discovered an ore body larger than previously estimated. As a result, they are beginning “targeted life extension delineation and geotechnical drilling.”
Burgundy has pinpointed two new drill targets, one of which was not previously included in Ekati’s mineral resources.
Misery, known for its high-value ore, produces about 3 million carats annually, with a production value around $235 million.
The mine has generated over 27 million carats, including fancy yellow diamonds, from open pit operations before transitioning to underground mining in 2021.
“Misery is an exceptional asset capable of generating around A$350 million (US$235 million) annually from just over a million tonnes of ore,” said CEO and Managing Director Kim Truter. “Any additional tonnage we can identify through our drilling efforts will significantly enhance its value.”
Misery was converted to an underground operation in 2019, reaching commercial production in 2021.
Burgundy purchased the mine, located 125 miles south of the Arctic Circle, for $136 million from Arctic Canadian Diamond Company. This company had acquired the deposit in February 2021 after the previous owner, Dominion Diamonds, filed for insolvency.
