Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the "Company" or "Dominion") today provided an update on its renewed strategic focus on greenfield exploration activities at the Ekati Diamond Mine ("Ekati mine"), Diavik Diamond Mine ("Diavik mine") and other properties in the Lac de Gras region in the Northwest Territories in Canada. The Company also announced a maiden resource at the Leslie kimberlite pipe at the Ekati mine. Unless otherwise indicated, all financial information is presented in US dollars.

Highlights
  • Maiden inferred mineral resource of 51 million tonnes and 16 million carats at the Leslie pipe, the highest priority amongst pipes at the Ekati mine that have been bulk sampled, but not yet included in the mine plan
  • Renewed strategic focus on exploration with success-based five-year budget of approximately C$50 million
  • 150 known kimberlites on the Ekati property, including approximately 110 pipes that have not had follow-up bulk sampling programs
  • Kodiak pipe at the Ekati mine is the highest priority amongst pipes that have not been bulk sampled, and is land-based
  • Kodiak and Leslie pipes are close to existing infrastructure at the Ekati mine, with potential to be included in a future life of mine plan
  • At Diavik, the 2017 program includes drilling, microdiamond sampling and additional mineral chemistry analysis on three priority kimberlites
  • Large land position, with exposure to more than 680,000 hectares, and infrastructure advantage in highly prospective Lac de Gras region

"Our renewed focus on exploration is generating strong results along the entire project pipeline, reflecting near-, mid- and longer-term potential," said Jim Gowans, Chairman of the Board. "We expect to complete pre-feasibility studies on Misery Deep and Fox Deep during the current fiscal year, and have identified high potential pipes in proximity to our existing infrastructure in the Lac de Gras region. The Leslie pipe is our highest-priority pipe amongst kimberlites that have been bulk sampled, as demonstrated by the announcement of its maiden resource."

"We are mining and exploring in what is still a relatively young mining district," continued Gowans . "There has been no greenfield exploration at Ekati since 2007, and of the 150 known kimberlites, only about 40 have had follow-up bulk sampling. We believe there is strong potential for further exploration success at Ekati and Diavik, and throughout the highly-prospective Lac de Gras region."

Background

The first diamond-bearing kimberlite pipe in the Lac de Gras region was discovered at Point Lake on the Ekati property as a result of systematic heavy mineral sampling by prospectors Chuck Fipke and Stewart Blusson over a ten-year period, and was ultimately confirmed by drilling in 1991. Mining operations were started by the operator of the Ekati mine, BHP Billiton, in 1998. Dominion acquired its initial interest in the Ekati mine in 2013.

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