Dominion Diamond Corporation reports Diavik and Ekati Diamond Mine Second Quarter Production

  Dominion Diamond Corporation reports Diavik and Ekati Diamond Mine Second
                              Quarter Production

  PR Newswire

  TORONTO, July 16, 2013

TORONTO, July 16, 2013 /PRNewswire/ --

Dominion Diamond Corporation (TSX:DDC, NYSE:DDC) (the "Company") reports
Diavik and Ekati Diamond Mine second calendar quarter production results:

Diavik Diamond Mine

During the second calendar quarter of 2013, the Diavik Diamond Mine produced
1.6 million carats from 0.5 million tonnes of ore processed, as compared to
1.8 million carats from 0.5 million tonnes of ore processed in the comparable
quarter of the prior year.

For the first half of the calendar year 2013, theDiavik Diamond Mineproduced
3.5 million carats from 1.0 million tonnes of ore processed compared to
production of 3.4 million carats from 1.1 million tonnes of ore processed in
the comparable period of the prior year.The 3% increase in carats recovered
in the current year was primarily due to an increase in grade in each of the
kimberlite pipes. The average grade of ore processed including reprocessed
plant rejects ("RPR") was 3.41 carats/tonne compared with 3.18 carats/tonne in
the comparable period of the prior year.

Diavik diamond Mine Production 40% basis


    For the three months ended June 30, 2013            For the three months ended
                                                               June 30, 2012
    Pipe   Ore Processed  Carats      Grade      Ore Processed    Carats        Grade
           (000s tonnes)  (000s)  (carats/tonne) (000s tonnes)    (000s)    (carats/tonne)
    A-154
    South       61         229         3.79           13             54           4.28
    A-154
    North       69         130         1.89           28             58           2.04
    A-418       80         232         2.89          174            604           3.47
    RPR          1          33            -            -              -              -
    Total      211         624         2.82(a)       215            716           3.33(a)

^(a) Grade has been adjusted to exclude RPR


    For the six months ended June 30, 2013              For the six months ended
                                                             June 30, 2012
    Pipe     Ore Processed   Carats     Grade      Ore Processed   Carats      Grade
             (000s tonnes)   (000s) (carats/tonne) (000s tonnes)   (000s)  (carats/tonne)
    A-154
    South         120         524        4.36            28         104         3.70
    A-154
    North         138         296        2.15            69         128         1.85
    A-418         151         506        3.35           329       1,095         3.33
    RPR             3          76           -             1          32            -
    Total         412       1,402        3.24(a)        427       1,359         3.12(a)

^(a) Grade has been adjusted to exclude RPR

An updated mine plan and budget for calendar 2013 has been approved by Rio
Tinto plc ("Rio Tinto") and the Company. The updated plan for calendar 2013,
which originally included Diavik Diamond Mine production of approximately 6
million carats, currently foresees production of approximately 7.3 million
carats from the mining of approximately 1.8 million tonnes of ore and the
processing of approximately 2.2 million tonnes of material from both mining
and stockpiles. The approximately 22% increase in carats in expected
production for calendar 2013, as compared to the original plan, relates to
both the processing of more stockpiled ore and an increase in underground
mining velocity during the calendar year. Mining activities will be
exclusively underground with approximately 0.7 million tonnes expected to be
sourced from A-154 North, approximately 0.5 million tonnes from A-154 South
and approximately 0.6 million tonnes from A-418 kimberlite pipes. Included in
the estimated production for calendar 2013 is approximately 0.4 million carats
from RPR and 0.1 million carats from the improved recovery process for small
diamonds. These RPR and small diamond recoveries are not included in the
Company's reserves and resource statement and are therefore incremental to
production.

Ekati Diamond Mine

During the period fromApril 10, 2013(the date of acquisition by the Company
of its interest in theEkati Diamond Mine) to June 30, 2013, the Ekati Diamond
Mine produced 0.4 million carats from 1.0 million tonnes of ore processed. The
average grade of ore processed was 0.41 carats/tonne.

Ekati diamond Mine Production 80% Basis


    For the period from April 10, 2013 (date of acquisition) to June 30, 2013
                              Ore Processed              Carats               Grade
    Pipe                      (000s tonnes)              (000s)      (carats/tonne)
    Koala Phase 5                        50                  19                0.38
    Koala Phase 6                        26                  34                1.30
    Koala North                          75                  59                0.78
    Fox                                 613                 199                0.33
    Total                               764                 311                0.41


The mine plan and budget for theEkati Diamond Mineforesees production (on a
100% basis) for the period fromApril 10, 2013(the date of acquisition by the
Company of its interest in theEkati Diamond Mine) to the calendar 2013
year-end of approximately 1.0 million carats from the mining of approximately
3.5 million tonnes from mineral reserve, and the processing of approximately
3.9 million tonnes, with the additional material being made up of diamond
bearing kimberlite from a satellite body in the Misery open pit that is
excavated as part of the waste stripping as the pit profile is advanced.

Pricing

Based on the Company's sales during the first quarter and the current diamond
recovery profile of the Diavik and Ekati processing plants, the Company has
modeled the approximate rough diamond price per carat for each of the ore
types as follows:


                     June 2013                               June 2013
                     Average Price per                       Average Price per
                     Carat                                   Carat
    Diavik Ore Type  (in US dollars)         Ekati Ore Type  (in US dollars)
    A-154 South      $140                    Koala Phase 5   $360
    A-154 North      $180                    Koala Phase 6   $415
    A-418            $100                    Koala North     $435
    RPR               $50                    Fox             $315


About Dominion Diamond Corporation

Dominion Diamond Corporation is a Canadian diamond mining company with
ownership interests in two of the world's most valuable diamond mines. Both
mines are located in the low political risk environment of the Northwest
Territories of Canada. The Company is the fourth largest diamond producer by
value globally and the largest diamond mining company by market
capitalization, listed on the Toronto and New York Stock Exchanges.

The Company operates the Ekati Diamond Mine through its 80% ownership as well
as a 58.8% ownership in the surrounding areas containing prospective
resources.  It also sells diamonds from its 40% ownership in the Diavik
Diamond Mine.

For more information, please visit  http://www.ddcorp.ca

Forward-Looking Information

Information included herein that is not current or historical factual
information, including information about mining activities and estimated
production from the Company's mining properties, may constitute
forward-looking information or statements within the meaning of applicable
securities laws. Forward-looking information is based on certain factors and
assumptions regarding, among other things, mining, production, construction
and exploration activities at each of the Diavik and Ekati Diamond Mines,
mining methods, currency exchange rates, operating and capital costs, labour
and fuel costs, world and US economic conditions, future diamond prices, and
the level of worldwide diamond production. Actual results may vary from the
forward-looking information.  While the Company considers these assumptions
to be reasonable based on the 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, including risks
associated with underground construction and mining operations, risks
associated with the location of and harsh climate at the Diavik and Ekati
Diamond Mine sites, fluctuations in diamond prices and changes in US and world
economic conditions, risks relating to the price of fuel and the availability
and cost of labour for the Diavik and Ekati Diamond Mines, the risk of
fluctuations in the Canadian/US dollar exchange rate, as well as risks
associated with regulatory requirements. Readers are cautioned not to place
undue importance on forward-looking information, which speaks only as of the
date of this disclosure, and should not rely upon this information as of any
other date. While the Company may elect to, it is under no obligation and does
not undertake to, update or revise any forward-looking information, whether as
a result of new information, further events or otherwise at any particular
time, except as required by law. Additional information concerning factors
that may cause actual results to materially differ from those in such
forward-looking statements is contained in the Company's filings with Canadian
and United States securities regulatory authorities and can be found at 
http://www.sedar.com and http://www.sec.gov respectively.

For further information: Contacts: Mr. Richard Chetwode, Vice President,
Corporate Development - +44-(0)7720-970-762 or rchetwode@ddcorp.ca Ms. Kelley
Stamm, Manager, Investor Relations - +1- ( 416)205-4380 or  kstamm@ddcorp.ca
(DDC.DDC)
 
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