Mine study complete this fall: company head optimistic over diamond find. (Mining).

After spending $40 million to excavate 9,650 tonnes of kimberlite rock near the James Bay coast, the diamonds harvested by DeBeers from their Victor project could fill the equivalent of one-and-a-half water jugs.

It may not seem like much, but it is sufficient to convince the company to forge ahead with a pre-feasibility study to determine whether or not to build an open-pit mine near Attawapiskat, says DeBeers Aboriginal adviser Michael Cunningham.

Cunningham was one of a slate of speakers at the April 11 Timmins: Today and Tomorrow seminar. The seminar is a biennial event hosted by the local chamber of commerce aimed at delivering a local business overview and forecast from some of the area's leading professionals in the mining, forestry and technology fields.

With exploration at the Victor site complete, DeBeers and their engineering consultants are in the midst of a pre-feasibility study to determine if its worth building a mine in a muskeg area about 90 kilometres inland from Attawapiskat.

The study is expected to be wrapped up by either October or November, at which time the decision will be made whether or not to proceed to full-blown feasibility study likely to take 12 to 18 months.

If the project isapproved by the board of directors, construction could begin in 2005-06 with an eventual mine operating life of 11 to 12 years.

For residents of the Attawapiskat First Nation, the small army of geologists and engineers that have descended on the area has been an economic boon. Locals have found work in the base camp as drill helpers, geology assistants, carpenters, environmental technicians, labourers and kitchen staff.

And the economic ripple effect from any future activities is sure to reach as far south as Timmins.

"On the business side, it's wide open" as mining companies like DeBeers are very receptive to contract, subcontract and joint-venture opportunities to cut the costs operating in a remote area, says Cunningham.

"Almost all aspects of the operation are potentially open to these types of undertakings, or at least a vast majority are."

Cunningham says if the project moves forward into the mine-construction stage, there would be a variety of development opportunities with port facilities, an all-season road to the site, and communications and fibre optic upgrades.

The operation itself would be an open-pit mine, a little under one square kilometre in size, which would require draining a muskeg area. But DeBeers will make painstaking efforts, in consultation with Native elders, not to harm plants, wildlife and the environment, says Cunningham.

Cunningham says DeBeers is also committed to providing education and training to residents from coastal communities.

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