Dominion Diamond Corporation Issues Updated Mine Plans for the Ekati and Diavik Diamond Mines

 Dominion Diamond Corporation Issues Updated Mine Plans for the Ekati and  Diavik Diamond Mines  TORONTO, Feb. 3, 2014 /CNW/ - Dominion Diamond Corporation (TSX:DDC, NYSE:DDC)  (the "Company") is pleased to release an updated life-of-mine plan for each of  the Ekati and Diavik Diamond Mines, including current estimates for  anticipated annual production by pipe, with associated operating costs and  capital costs.  Highlights:            --  Both mines are performing well; Diavik as an all underground             mine and Ekati as a combination open pit-underground mine.         --  The operating cost forecasts in the updated Diavik mine plan             demonstrate substantial savings compared with the previously             published mine plan (2012), whilst mining and processing an             increased amount of ore.         --  The new Ekati Mine Plan includes the first detailed production             forecast based on reserves only to the Dominion Diamond fiscal             year end (January 31st) with production currently forecast to             run through to fiscal 2020.         --  The synergies, cost savings and efficiencies brought about by             the integration of the Ekati and Diavik sales and sorting             processes and resources are already demonstrating benefits.  Unless otherwise specified, all financial information is presented in Canadian  dollars, on a 100% basis, and references to years are to calendar years unless  otherwise stated. The Company has an 80% interest in the Ekati Diamond Mine as  well as a 58.8% interest in the surrounding areas, and a 40% interest in the  Diavik Diamond Mine.  About Dominion Diamond Corporation  Dominion Diamond Corporation is a Canadian diamond mining company with  ownership interests in two of the world's highest rock value 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 additional resources.   It also sells diamonds from its 40% ownership in the Diavik Diamond Mine.  For more information, please visit www.ddcorp.ca  Forward-Looking Information  Information included herein that is not current or historical factual  information, including information about estimated mine life and other plans  regarding mining activities at the Ekati Diamond Mine and Diavik Diamond Mine,  estimated reserves and resources at, and production from, the Ekati Diamond  Mine and Diavik Diamond Mine, projected capital and operating costs, and  future diamond prices, constitute forward-looking information or statements  within the meaning of applicable securities laws. Forward-looking information  can generally be identified by the use of terms such as "may", "will",  "should", "could", "expect", "plan", "anticipate", "foresee", "appears",  "believe", "intend", "estimate", "predict", "potential", "continue",  "objective", "modeled", "hope", "forecast" or other similar expressions  concerning matters that are not historical facts. Forward-looking information  is based on certain factors and assumptions including, among other things,  mining, production, construction and exploration activities at the Company's  mineral properties; mining methods; currency exchange rates; required  operating and capital costs; labour and fuel costs; world and US economic  conditions; future diamond prices; and the level of worldwide diamond  production. 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 the Company currently expects. These factors include,  among other things, the uncertain nature of mining activities, including risks  associated with underground construction and mining operations, risks  associated with joint venture operations, including risks associated with the  inability to control the timing and scope of future capital expenditures, the  risk that the operator of the Diavik Diamond Mine may make changes to the mine  plan and other risks arising because of the nature of joint venture  activities, risks associated with the remote location of and harsh climate at  the Company's mineral property sites, risks resulting from the Eurozone  financial crisis, risks associated with regulatory requirements, the risk of  fluctuations in diamond prices and changes in US and world economic  conditions, the risk of fluctuations in the Canadian/US dollar exchange rate  and cash flow and liquidity risks. Actual results may vary from the  forward-looking information. 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. Due to assumptions, risks and uncertainties, including the assumptions,  risks and uncertainties identified above and elsewhere in this disclosure,  actual events may differ materially from current expectations. The Company  uses forward-looking statements because it believes such statements provide  useful information with respect to the currently expected future operations  and financial performance of the Company, and cautions readers that the  information may not be appropriate for other purposes. 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, future 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 www.sedar.com and  www.sec.gov, respectively.  2014 Mine Plan for Ekati and Diavik Diamond Mines  Introduction  Dominion Diamond Corporation (the "Company") is a Canadian diamond mining  company with ownership interests in two of the world's highest rock value  diamond mines. The Company supplies rough diamonds to the global market from  its controlling interest in the Ekati Diamond Mine, and its 40% ownership  interest in the Diavik Diamond Mine, both located approximately 300 km  northeast of Yellowknife in the Canada's Northwest Territories.  The Diavik Diamond Mine is an unincorporated joint arrangement (the "Diavik  Joint Venture") between Diavik Diamond Mines (2012) Inc. ("DDMI") (60%) and  Dominion Diamond Diavik Limited Partnership ("DDDLP") (40%) where DDDLP holds  an undivided 40% ownership interest in the assets, liabilities and expenses of  the Diavik Diamond Mine. DDMI is the operator of the Diavik Diamond Mine. DDMI  and DDDLP are headquartered in Yellowknife, Canada. DDMI is a wholly owned  subsidiary of Rio Tinto plc ("Rio Tinto") of London, England.  The Ekati Diamond Mine was acquired by the Company from BHP Billiton on April  10, 2013. The Ekati Diamond Mine consists of the Core Zone, which includes the  current operating mine and other permitted kimberlite pipes, as well as the  Buffer Zone, an adjacent area hosting kimberlite pipes having both development  and exploration potential. The Core Zone Joint Venture is held 80% by the  Company and 10% each by Dr. Charles Fipke and Dr. Stewart Blusson. It  encompasses 176 mining leases, totalling 173,024 ha, and hosts 111 known  kimberlite occurrences including the Koala, Koala North, Fox, Misery, Pigeon,  and Sable kimberlite pipes. The Buffer Joint Venture is held 58.8% by the  Company, 10% by Dr. Charles Fipke, and 31.2% by Archon Minerals Ltd. It  contains 106 mining leases covering 89,151.6 ha, and hosts 39 known kimberlite  occurrences including the Jay and Lynx kimberlite pipes. Dominion Diamond  Ekati Corporation, a wholly-owned subsidiary of the Company, is the operator  of the Ekati Diamond Mine.  Given that each mine has different ownership structures, operators, and  operational year ends, the mine plans are each presented separately, on a 100%  basis. Other economic factors that are directly related to the Company, such  as marketing costs, diamond prices, and private royalties, are discussed  separately at the end of this document. Unless otherwise specified, all  financial information is presented in Canadian dollars, on a 100% basis, and  references to years are to calendar years.  Diavik Diamond Mine - Production  This updated plan is derived from DDMI's estimates, based on the current  reserve and resources as of December 31, 2012.  The reserve and resource  information that is the basis for this plan was prepared by or under the  supervision of Calvin G. Yip, P. Eng., an employee of DDMI and a Qualified  Person within the meaning of National Instrument 43-101.  All other scientific  and technical information set out in this updated plan was prepared by or  under the supervision of Mats Heimersson, P. Eng., an employee of the Company  and a Qualified Person within the meaning of National Instrument 43-101.  With  DDMI's support, the Company is preparing an updated technical report on the  mineral resources and mineral reserves at the Diavik Diamond Mine. The Company  expects to file this technical report in the third quarter of calendar 2014.  The Diavik Diamond Mine has been in production since 2003. To December 31,  2013, the mine has produced approximately 84 million carats of diamonds from  the processing of approximately 22 million tonnes of kimberlite and has  transitioned from an open pit operation to a fully underground mine.  Early planning of the underground mining at the Diavik Diamond Mine identified  a number of possible mining methods. Since September 2012, Diavik has been an  entirely underground operation.  Presently Blast Hole Stoping ("BHS") is  employed in the A-154 North pipe with lower cost Cemented Rock Fill ("CRF")  being used rather than the more expensive cemented paste that was originally  planned. As a result of the increasing understanding of the ground conditions  as the underground operations were developed, the optimal mining methodology  for the A-154 South pipe and the A-418 pipe resulted in the use of Sub Level  Retreat ("SLR"). This mine plan is based on the current mining method, and  this may change in the future as DDMI is continually looking at improvements  in mining methods, material handling, and cost reduction in general.  Table 1 shows the planned mining tonnage for each ore body, and Table 2 the  corresponding carat estimates. The data is shown on an annualised basis  starting in calendar 2013 and does not include rough diamond stocks at the  mine at the opening of the year.  In addition, the plan does not take into  account any rough diamond inventory available for sale that the Company  currently holds.  In 2013, Diavik processed an additional 0.15 million tonnes  of stockpiled ore that produced 0.44 million carats, and in 2014 Diavik plans  to process 0.20 million tonnes of stockpiled ore that is estimated to produce  0.54 million carats.  Table 1: Tonnage Mined - Diavik Diamond Mine (100% Basis)                              Reserves (Tonnes Millions)             Year   A154S  A154N         A418  Total      2013    0.54   0.72         0.69    1.95     2014    0.42   0.70         0.79    1.91     2015    0.40   0.70         0.80    1.90     2016    0.31   0.77         0.86    1.94     2017    0.32   0.82         0.74    1.88     2018    0.31   0.67         0.69    1.67     2019    0.32   0.77         0.73    1.82     2020    0.09   0.76         0.60    1.45     2021       -   0.82         0.53    1.35     2022       -   0.87         0.48    1.35     2023       -   0.61         0.34    0.95     Total   2.71   8.22         7.25   18.18     Figures may not add up due to rounding.   Table 2: Carats from mined ore - Diavik Diamond Mine (100% Basis)                                                       Reserves (Carat Millions)             Year   A154S  A154N        A418   Total     2013    2.41   1.50        2.48    6.39     2014    1.64   1.47        2.85    5.97     2015    1.40   1.46        3.22    6.08     2016    1.07   1.75        3.23    6.05     2017    1.15   1.92        2.89    5.96     2018    1.15   1.50        2.56    5.22     2019    1.20   1.67        2.54    5.42     2020    0.36   1.57        1.97    3.90     2021       -   1.68        1.59    3.27     2022       -   1.76        1.29    3.05     2023       -   1.19        0.95    2.14     Total  10.40  17.48       25.57   53.45     Figures may not add up due to rounding.  The current reserve base supports mining operations at Diavik up to 2023. In  addition to the current reserves, there are 2.6 million tonnes of inferred  resources (in the aggregate) distributed amoung the lower parts of each of  A-154 South, A-418 and most significantly, A-154 North, that could potentially  further expand operations. DDMI currently expects to process this material as  part of its mining operations as they reach the lower levels of each pipe.  However, inferred mineral resources are considered too geologically  speculative to have the economic considerations applied to them that would  enable them to be categorized as mineral reserves, and there is no certainty  that they will be mined. They have therefore not been included in the above  mine plan. Mineral resources that are not mineral reserves do not have  demonstrated economic viability. The three pipes currently in production also  extend below the current inferred resource horizons although additional  economic ore may be limited in volume and might not add longevity to the mine  life.  DDMI has an ongoing drilling and sampling program intended to support  the mining of the inferred material and, potentially, beyond.  In addition, if  a decision is taken to develop the A-21 pipe this would be additional ore at  the end of the life of the mine.  The Diavik processing plant has a potential capacity to process over 2 million  tonnes a year.  To supplement mined ore, Diavik plans to continue processing  old coarse ore rejects material ("COR"). The grade of this material is  variable but is generally high as shown by the results from COR production  from 2012 and 2013 contained in Table 3. Based on these historical recovery  rates, the tonnage of this material which is planned to be processed during  calendar 2014 would have produced 0.6 million carats from COR.  The remaining  60,000 tonnes of target COR material that could be processed in later years is  not anticipated to be of the same high grade.  Table 3: Coarse Ore Rejects tonnes and carats - Diavik Diamond Mine (100%  Basis)                                        COR     Tonnes   Grade Carats     Production  000's Cts per  000's                         Tonne         2012      5.3    26.1  139.0         2013     14.4    26.9  388.0  Improvements to the recovery process for small diamonds is expected to result  in a 3% increase in carat yield beyond the stated reserve and resource grade.   It should be noted that the average size of diamonds recovered from COR  material and the improvements in diamond recovery are significantly below the  run-of-mine from the main ore bodies, and this is reflected in the modelled  price per carat. The diamonds recovered from COR and improved small diamond  recovery are not currently included in the Company's reserves and resource  statement.  This mine plan does not include any production from the A-21 pipe.  The  development of the A-21 pipe continues to be under review but no decision has  been made to develop this pipe at this time since the identification of  extensions to the existing pipes has decreased the urgency to bring the pipe  into the mine plan in the short term.  As with the other pipes at Diavik, A-21  is located below the water of Lac de Gras. A pre-feasibility study proposes  mining approximately 3.6 million tonnes of ore on an open pit basis, which is  expected to yield approximately 10 million carats.  The Company estimates the  quality of the diamonds to be similar to those from A-154 South. DDMI  continues to refine the project with a focus on reducing capital costs.   Mineral resources that are not mineral reserves do not have demonstrated  economic viability.  Diavik Diamond Mine - Capital and Operating Costs  The initial capital to build the Diavik Diamond Mine was spent between late  1999 and early 2003.  Construction was completed on budget and ahead of  schedule. From 2004 to the end of 2012, capital expenditures were for  sustaining the operation and for carrying out planned mine developments.   Sustaining capital included scheduled processed kimberlite containment dam  raises, improvements to the processing plant, planned additions to the mine  equipment fleet, rotating replacements of light vehicles, geology drilling,  purchase of critical spares, and general improvements across the operations.   Mine development capital included the A-418 dike, A-154 & A-418 underground  decline, the A-21 decline, underground test mining and bulk sampling of  kimberlite, a number of studies leading up to the present mine development  plan, and some pre-works construction for the new developments and underground  construction.  The capital, reclamation and operating costs for this latest reserves-based  plan are based on DDMI's estimates. Table 4 shows currently estimated  sustaining capital: with the completion of the underground development in  2013, no further development capital is required under this plan going  forward.  The costs shown include estimated contingencies where applicable,  but do not include any escalation or risk contingency amounts for unforeseen  events. In addition to ongoing equipment replacements and general operational  upgrades, sustaining capital will include certain categories of ongoing  underground excavation to maintain mining advances to increasing depths.  Table 4 also shows currently estimated operating costs based on DDMI's  operating experience, adjusted to present-day dollar terms.  Given the remote  location of the Diavik Diamond Mine, a large portion of the operating  expenditure is relatively fixed, with the major cost items being human  resources and fuel (for both power and equipment). Not shown in Table 4 are  marketing costs or private royalties as these factors are discussed separately  at the end of this document.  Table 4: Operating and Capital Costs - Diavik Diamond Mine (100% Basis)                                                                   CAPITAL COSTS     OPERATING COSTS     Calendar       Year                                  Direct and              Developing Sustaining Total      Indirect                   C$m        C$m    C$m           C$m        2013           7         55    62             415        2014          -          52    52             408        2015          -          46    46             392        2016          -          40    40             392        2017          -          32    32             384        2018          -          38    38             372        2019          -          27    27             398        2020          -          10    10             373        2021          -           2     2             375        2022          -           2     2             380        2023          -           2     2             315        Totals           7        306   313           4,203  Under this mine plan Diavik will cease mining operation in 2023. The  reclamation costs are estimated at $188 million based on a DDMI closure cost  model that is considered to be equal to or better than others used in the  industry.  The majority of these closure costs are expected to be spent in  2022 to 2025 although the full reclamation plan will only be completed in 2030.  Ekati Diamond Mine - Production  This updated plan is derived from the Company's estimates, based on the  current reserve and resources as of December 31, 2012.  The reserve and  resource information set out in this life-of-mine plan was prepared by or  under the supervision of Mats Heimersson, P. Eng., an employee of the Company  and a Qualified Person within the meaning of National Instrument 43-101. For  more information see the Company's Technical Report regarding the Ekati  Diamond Mine dated May 24, 2013, filed on SEDAR. Following this winter's  drilling program the Company will be preparing an updated technical report on  the mineral resources and mineral reserves at the Ekati Diamond Mine. The  Company expects to file this technical report in the third quarter of calendar  2014.  This current mine plan assumes production from Fox, Misery, Pigeon and Lynx  open pits, and the Koala and Koala North underground operations.  Koala North  is currently in production as a sub level retreat underground operation and is  scheduled to finish later this year.  Koala is currently in production as a  sublevel / inclined cave underground operation and is scheduled to finish in  calendar 2019.  Fox is currently in operation as an open pit and is scheduled  to finish in calendar 2014.  Stripping of waste material and satellite  kimberlite is in progress at Misery open pit with expected full year  production from the Misery Main Pipe in calendar 2016 and completion of mining  in calendar 2018.  Stripping of waste material from Pigeon open pit is  scheduled to commence in calendar 2014 with mining of kimberlite commencing in  calendar 2015 and finishing in calendar 2019.  Table 5 shows the planned mining tonnage for each ore body. The data is given  on a full financial year basis from Fiscal 2015, with Fiscal 2014 representing  the period since the Company's acquisition of Ekati on April 10, 2013 to  January 31, 2014. These figures do not include rough diamond stocks held at  the mine at the opening of each year, nor does the model take into account any  rough diamond inventory available for sale that the Company currently holds.  In addition to probable reserves, this plan includes the development and  mining of the Lynx pipe that is currently an indicated resource.   Also as  part of the mining of the Koala deposit a small portion of inferred resources  is extracted along with the reserves: this material is not included in the  mine plan estimates but will be processed along with the reserve ore.  Mineral  resources that are not mineral reserves do not have demonstrated economic  viability.  Table 5: Tonnage Mined - Ekati Diamond Mine (100% Basis)                                                                                           Reserves (Tonnes                         Additional                       Millions)                              Resources                                       Koala                   (Tonnes     Fiscal Year  Fox  Misery  Pigeon North   Koala   Total  Millions)                                                              Lynx *           2014   3.50       -       -   0.33   0.40     4.23                     2015   0.52       -       -     -     0.87    1.40          -          2016     -     0.02    0.83     -     1.03    1.88          -          2017     -     1.34    1.80     -     1.05    4.19       0.13          2018     -     1.67    0.18     -     0.98    2.82       0.96          2019     -        -    2.87     -     0.67    3.55          -          2020     -        -    1.60     -     0.44    2.04          -           Total   4.02    3.03    7.29  0.33     5.44   20.11       1.09     * Lynx is part of the Buffer Zone.  All other deposits are part of     the Core Zone.     Figures may not add up due to rounding.  Because of timing differences and blending choices the ore that is planned to  be processed each fiscal year differs, sometimes significantly, from the ore  mined in that fiscal year. Table 6 shows the planned ore to be processed by  fiscal year and source and Table 7 the corresponding estimated carats produced.  Table 6: Ore Processed - Ekati Diamond Mine (100% Basis)                                                                                             Reserves Processed (Tonnes Millions)   Additional                                                             Resources                                       Koala                   (Tonnes     Fiscal Year  Fox  Misery  Pigeon North   Koala   Total  Millions)                                                              Lynx *           2014   2.42       -       -   0.31    0.40    3.13          -          2015   1.70       -       -     -     0.87    2.58          -          2016     -     0.02    0.41     -     1.03    1.46          -          2017     -     0.75    1.30     -     1.05    3.09       0.02          2018     -     0.87    0.99     -     0.98    2.84       0.87          2019     -     1.07    2.30     -     0.67    4.04       0.20          2020     -     0.33    2.28     -     0.44    3.05          -           Total   4.12    3.03    7.29  0.31     5.44   20.19       1.09     * Lynx is part of the Buffer Zone.  All other deposits are part of                                                         the Core Zone.                                Figures may not add up due to rounding.  Table 7: Carats Produced - Ekati Diamond Mine (100% Basis)                                                                                                     Reserves (Carat Millions)      Additional                                                              Resources                                       Koala                   (Carat     Fiscal Year  Fox  Misery  Pigeon North   Koala   Total  Millions)                                                              Lynx *           2014   0.72       -       -   0.20    0.30    1.22          -          2015   0.36       -       -     -     0.51    0.87          -          2016      -    0.07    0.16     -     0.48    0.71          -          2017      -    2.90    0.57     -     0.53    4.00       0.02          2018      -    3.67    0.41     -     0.57    4.65       0.69          2019      -    4.55    0.92     -     0.45    5.92       0.15          2020      -    1.39    1.09     -     0.27    2.75          -           Total   1.08   12.58    3.15  0.20     3.11   20.12       0.85     * Lynx is part of the Buffer Zone.  All other deposits are part of                                                         the Core Zone.                                Figures may not add up due to rounding.  The Ekati processing plant has the capacity to process up to approximately  4.35 million tonnes a year. In addition to the tonnages presented in Table 6,  Ekati currently plans to process all remaining available Koala North mined  kimberlite in fiscal 2015, the majority of which is 150,000 tonnes of inferred  resources.  More significantly, Ekati currently plans to process the Misery  South and Southwest Extension kimberlite that is made available as the Misery  reserves are accessed.  Additionally, coarse ore rejects (not currently  classified as resources) will be incrementally processed.  Table 8 shows the Misery satellite pipe material that is scheduled to be  excavated during the pre-stripping operations for Misery Main Pipe. Estimates  of tonnage and grade for the Misery satellite pipes have been made based on  bulk samples collected during exploration programs, and confirmed by more  recent production tests. The total tonnage range of this material is estimated  to be between 2.7 million tonnes and 4.5 million tonnes, and the satellite  pipes grade is estimated to range from 1.0 carats per tonne to 1.7 carats per  tonne. In fiscal 2014, approximately 340,000 carats were produced from  processing 291,000 tonnes of Misery Satellite material.  The diamonds that  have been recovered to date display similar characteristics to diamonds from  the Misery Main pipe. Dominion cautions that the potential quantity and grade  remains conceptual in nature as there has been insufficient exploration and/or  study to define this material as a Mineral Resources and it is uncertain if  additional exploration will result in the exploration target being delineated  as a mineral resource. Additional drilling is being planned for mid- 2014 with  the objective of gathering sufficient data to promote this material to a  mineral resource.  Table 8: Misery Satellite Material to be Excavated - Ekati Diamond Mine (100%  Basis)                                                                         Misery Satellite Material Mined (Tonnes Millions)     Fiscal  Misery SW  Misery  South                  Total       Year  Extension       2014        0.04            0.20                   0.24      2015        0.64            0.61                   1.25      2016        0.95            0.36                   1.31      2017        1.42            0.08                   1.50      2018        0.29               -                   0.29      2019           -               -                      -       Total        3.34            1.25                   4.58  Coarse ore rejects have been stockpiled at Ekati since the start of production  in 1998 to present.  Several production periods have been identified during  which high grade feed sources were blended through the process plant using  larger aperture de-grit screens (1.6 mm slot) compared to the current 1.2 mm  configuration. In addition, the re-crush circuit was not utilised during these  periods. The coarse ore rejects from the production periods of interest are  estimated at 3.5 milion tonnes to 4.5 million tonnes. Based on stone size  distributions and recovered grade data, this material has an overall grade  ranging from 0.2 to 0.6 carats per tonne.  While the historic recoveries and  valuations may not necessarily be indicative of recoveries or valuations  within the current coarse ore rejects stockpiles, treatment of this material  represents an attractive opportunity to supplement mill feed.  A number of  production test runs were successfully completed last year and a full  assessment of the results will be finalised later this year. Dominion cautions  that the potential quantity and grade remains conceptual in nature as there  has been insufficient exploration and/or study to define this material as a  Mineral Resources and it is uncertain if additional exploration will result in  the exploration target being delineated as a mineral resource.  Mineral resources that are not included in the current mine plan include Jay,  Sable and Fox deep.  Jay is considered the most significant prospect due its  large size and high grade (36.2 million tonnes of Indicated Mineral Resources  at an average grade of 2.2 carats per tonne, 1 mm slot screen cut-off) and  represents upside potential for the operation. An extensive drilling program  is being conducted over the winter period in support of a pre-feasibility  study for Jay.   The program has also targeted the Cardinal pipe which is  located approximately 5 km southeast of the Jay pipe.  The Jay, Sable and Fox deep Mineral Resources represent future plant feed  upside potential, and some or all of this mineralization may be able to be  incorporated in the life-of-mine plan once sufficient additional work has been  undertaken to support estimation of higher-confidence Mineral Resources and  eventual conversion to Mineral Reserves.  There is also potential to treat  low-grade stockpiles, primarily derived from open pit mining at the Fox  kimberlite, if the grades in the stockpiles can be demonstrated to be economic.  Ekati - Capital and Operating Costs  The capital and operating costs for this latest plan are based on the  Company's estimates.  The costs shown include estimated contingencies where  applicable, but do not include any escalation or risk contingency amounts for  unforeseen events. In addition to ongoing equipment replacements and general  operational upgrades, sustaining capital will include certain categories of  ongoing underground excavation to maintain mining advances to increasing  depths.  Table 9 shows currently estimated sustaining and mine development capital,  along with operating costs from Fiscal 2014 onward.  These capital costs  include costs associated with the development of the Misery and Pigeon pipes.   The total current estimated capital cost of developing the Misery pipe is $405  million, consisting largely of mining costs to achieve ore release, and of  which $201 million will be spent by end of January 2014.  The current  estimated cost for developing the Pigeon project is $85 million, and the Lynx  project $30 million: both of these estimates include the construction of  access roads, and pre-stripping of waste material to prepare the pit for  production and contingency.  The estimated operating costs in Table 9 assumes that Ekati is running at full  capacity and is based on the Company's operating experience, adjusted to  present-day dollar terms.  Given the remote location of the Ekati Diamond  Mine, a large portion of the operating expenditure is fixed, with the major  cost items being labour and fuel (for both power and equipment). Not shown in  Table 9 are marketing costs and private royalties as these factors are  discussed separately at the end of this document.  Under this mine plan, Ekati will cease mining operation in Fiscal 2020. The  reclamation costs are estimated at $347 million based on Ekati's closure cost  model that includes all activities required by the approved Interim Closure  and Reclamation Plan.  If the Jay and Cardinal deposits are permitted and  developed, the reclamation costs under the current Mine Plan will be reduced  further.  Table 9: Operating and Capital Costs - Ekati Diamond Mine (100% Basis)                                                                                 CAPITAL COSTS     OPERATING COSTS      Fiscal       Year                                  Direct and              Developing Sustaining Total      Indirect                   C$m        C$m    C$m           C$m        2014          90         42   132             317        2015         163         41   204             369        2016         124         42   166             361        2017          29         32    61             453        2018           -         16    16             442        2019           -         -     -              384        2020           -         -     -              379        Totals         406        173   579           2,705  Additional Economic Factors  The Company sorts its rough diamonds from Ekati and Diavik in Yellowknife,  Canada and Toronto, Canada and Mumbai, India and then distributes the  resulting aggregated 'boxes' to its Belgian and Indian subsidiaries for sale.  The Company's current budget for marketing 100% of the Ekati goods and 40% of  the Diavik goods is approximately $20 million per annum.  Based on the Company's rough diamond sales during the fourth calendar quarter  of 2013 and the current diamond recovery profile of the Diavik and Ekati  processing plant, the Company has modeled the current approximate rough  diamond price per carat for each of the deposits listed in Table 10 below.  Table 10: Modelled diamond prices by deposit                                                           Deposit             Average Price per                                    Carat $US     Diavik                                                A-154 South                  $140              A-154 North                  $180              A-418                        $100              Coarse Ore Rejects            $50              Small Diamond Project         $50       Ekati                                                 Koala                        $375              Koala North                  $420              Fox                          $305              Pigeon                       $195              Lynx                         $225              Misery Main                  $105              Misery South & South West $90-110              Coarse Ore Rejects        $65-120    The Company is currently budgeting on the basis of a US$/C$ exchange rate of  1.045, and in its own financial models assumes a real diamond price growth  rate of 2% per annum.  Both the Ekati Diamond Mine and the Diavik Diamond Mine pay royalties to the  Federal Government.  For each mine the Federal Government royalty payable is  equal to the lesser of 13% of the value of the 'Output' of the mine or an  amount calculated based on a sliding scale of royalty rates dependent upon the  value of 'Output' of the mine, ranging from 5% for value of output between  $10,000 and $5 million to 14% for value of output over $45 million.  In addition the Company pays three private royalties to third parties.  At  Ekati, a royalty is payable on kimberlite production from the Misery pipes  such that C$18.76 per tonne mined and processed is payable on the first  428,390 tonnes, and C$23.42 per tonne mined and processed is payable on the  next 544,000 tonnes.  At Diavik, there are two private royalties each paying  1% of the value of sales revenue.    SOURCE  Dominion Diamond Corporation  Mr. Richard Chetwode, Vice President, Corporate Development - +44 (0)   7720-970-762 orrchetwode@ddcorp.ca  Ms. Kelley Stamm, Manager, Investor Relations - (416) 205-4380  orkstamm@ddcorp.ca  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/February2014/03/c5923.html  CO: Dominion Diamond Corporation ST: Ontario NI: MNG FIELD