In 1991, Canada’s Northwest Territories (NWT) was catapulted into the world spotlight with the discovery of diamond-bearing kimberlites in the Lac de Gras area of the Slave Geological Province (see, e.g., A. A. Levinson et al., “Diamond sources and production: Past, present, and future,” Winter 1992 Gems & Gemology, pp. 234–254). Success has been swift, with several major developments in the last 10 years. The Ekati mine started production in 1998 (see, e.g., Winter 1998 Gem News, pp. 290–292), and the Diavik project is scheduled to begin production in 2003 (see the following entry by K. A. Mychaluk on a field excursion to these two mines). The Jericho and Snap Lake projects are in the “permitting” stage, with anticipated production slated to begin in 2003 and 2004, respectively. At least 250 additional occurrences of kimberlite, many of which are diamond bearing, have been discovered in the Slave Geological Province.

Three cutting factories (Sirius, Deton’Cho, and Arslanian) are operating in Yellowknife (the capital of the NWT). These factories provide training and employment for aboriginal people, as they supply the world market with Canadian mined, cut, and polished diamonds. Several brands of Canadian diamonds are now available with laser-inscribed logos (e.g., polar bear, snowflake, and maple leaf); in April 2001, BHP Diamonds, operator of the Ekati mine, began marketing EKATI™ diamonds.

The discovery of diamonds in the NWT led to accelerated exploration activity elsewhere in Canada as well. Currently, exploration is fueled primarily by the efforts of three major mining companies (De Beers Canada Mining, BHP Diamonds, and Rio Tinto) and about 30 smaller, junior to mid-sized companies. In recent years, numerous kimberlites have been found in western Canada (i.e., northern Alberta—44 pipes in two separate areas, discovered since 1996; and Saskatchewan—71 kimberlites, found primarily in the Fort à la Corne area since 1988). Encouraging results from surveys of diamond indicator minerals in Manitoba glacial tills have generated exploration activity there, but no diamond-bearing kimberlite has yet been found.

In central and eastern Canada, most exploration activity is taking place in two areas of Ontario: Wawa and the James Bay Lowlands (JBL; part of which is also in Quebec); the potential for diamonds in the JBL was first suggested a century ago (again, see Levinson et al., 1992). The large (16.7 ha) Victor pipe in the Attawapiskat area of the JBL is the most advanced Canadian diamond project outside the NWT, and is currently being evaluated by De Beers Canada Mining. Diamond exploration is gaining momentum in Quebec, primarily in three widely separated areas: the JBL, the Otish Mountains, and Torngat. In the Torngat area of the Ungava Peninsula (northeastern Quebec), at least 60 dikes of kimberlitic affinity, up to 5 m thick, can be traced for up to 10 km; although many contain diamonds, thus far these are uneconomic.

In 2000, the Ekati mine produced about 2.6 million carats of rough with an average value of nearly US$170/ct; this represents approximately 2.5% of world production by weight and 5% by value. By 2005, if the Diavik, Jericho, and Snap Lake mines are in full production, Canada’s contribution to the world supply of rough diamonds could be approximately 10% by weight and 15% by value. Yet, the exploration component of the Canadian diamond industry is still at an early stage, as compared to major producing countries (e.g., Botswana, South Africa, and Russia). The importance of the fledgling Canadian diamond industry apparently has not escaped the notice of unsavory (even criminal) elements. As early as May 1999, a mere six months after the opening of the Ekati mine, polished diamonds purported to be Canadian—but in far greater abundance than could conceivably have been mined and polished in that time frame—were being offered for sale on the world market (see, e.g., B. Avery, “That Canadian diamond may be bogus,” Calgary Herald, May 15, 1999, p. D11). More recently, and of far greater concern, it has been suggested that “conflict” diamonds have been smuggled into Canada to circumvent international embargos (see, e.g., A. Mitrovica, “Smuggled ‘blood’ diamonds are here, police fear,” Globe and Mail, March 29, 2001, p. A1).

Alfred A. Levinson
University of Calgary, Calgary

Bruce A. Kjarsgaard
Geological Survey of Canada, Ottawa