Burgundy Diamond Mines reported preliminary results from its ongoing drilling program at the Misery underground mine.
The company commenced drilling in July and has so far completed six out of thirty-two planned holes.
Results indicate that the Misery pipe, a high-value ore source, may continue in production well beyond its original 2026 end date.
"We are pleased to announce that results from our current drilling program are indicating that the Misery pipe, which is a very high value ore source requiring almost zero development capital, is very likely to stay in production well past the original 2026 date," stated Kim Truter, CEO of Burgundy Diamond Mines.
The drilling has consistently intersected the kimberlite pipe contact earlier than modelled, suggesting a larger ore body at depth.
During the program’s first drill hole (MDC-77), a fancy yellow diamond was discovered approximately 25m below the last planned mine level, further extending the potential of the ore body.
Additionally, Burgundy plans to start drilling and bulk sampling the Southwest extension of the Main ore body in the fourth quarter.
The area, known to contain diamonds from historic open-pit mining, has not yet been commercially targeted for the underground operation.
Burgundy is confident enough in these findings to resequence its Sable underground project, attributing a projected surplus of ore availability for this decision.
Updated mineral resource and ore reserve statements for Misery and its Southwest extension are expected within the next four to six months, with a revised mine plan to be published in the first quarter of 2025.
At the time of reporting, Burgundy Diamond Mines’ share price was $0.12.