Burgundy Diamond Mines Limited (ASX:BDM) has announced it will temporarily suspend open pit mining operations at its Point Lake site due to ongoing challenging market conditions for rough diamonds. Burgundy Diamond Mines is a premier, independent, global-scale diamond company focused on capturing margins across the entire value chain from mining and production to the sale of diamonds. The company’s decision comes after a bulk sample was taken and processed at Point Lake in June, yielding approximately 67,700 carats, but subsequent pricing analysis revealed the operation is currently sub-economic.
The suspension of mining at Point Lake will result in layoffs of some employees and a reduction in the number of contractors mobilized to the site. However, the company will maintain the site to ensure operations can be efficiently restarted if market conditions improve. Mining at the Misery underground operation, the principal production centre at Ekati, will continue unaffected. Production rates at Misery have reportedly improved in recent months due to enhanced mining techniques and equipment utilization.
Burgundy Diamond Mines is also resetting its operating model to support an adjusted mine plan that doesn’t rely on near-term surface operations. The company expects to release its first Burgundy-issued mine plan, along with a pre-feasibility study for the Fox underground project, by the end of July 2025. The Fox project, a high-value per carat deposit located approximately 8 kilometers from the Ekati processing plant, was last mined as an open pit in 2014. A quarterly production update is expected at the end of July.
The company’s strategic approach involves building a balanced portfolio of diamond projects located in favourable jurisdictions, including the globally ranked Canadian mining asset Ekati. Founded in Perth, Western Australia, Burgundy is led by a world-class management team and Board, combining global expertise with a commitment to sustainable and responsible diamond operations.
