Canadian Diamond Revival Driven by Arctic Blue and the DO27 Kimberlite Find

Canada Jewelry News: A Bold Move in Canada’s Diamond Game

Arctic Blue Diamonds Ltd. has taken a dramatic leap forward in securing its place as a leader in Canada’s next-generation diamond production. The company has now acquired an 89.7 percent controlling interest in the WO Diamond Project, anchored by the massive and high-grade DO27 kimberlite pipe located in the Northwest Territories. This strategic consolidation of ownership includes a 72.1 percent stake previously held by De Beers’ subsidiary Peregrine Diamonds Ltd. and an additional 17.6 percent purchased from Archon Minerals Ltd.

Title: Arctic Blue Diamonds leads a Canadian diamond revival at DO27 with next-generation underwater mining
Image Credit: AI-Generated

This Canada Jewelry News report confirms that with operational control and full marketing rights for future output, Arctic Blue is not only positioning itself as a successor to aging Canadian diamond giants like Diavik and Ekati—but as an innovator too. The DO27 kimberlite now places Arctic Blue at the center of a transformative chapter for Canadian diamond mining, combining world-class resources with pioneering mining methods.

The Jewel Beneath a Shallow Lake

The WO Project is strategically located 23 kilometres from Diavik and 53 kilometres from Ekati, covering over 5,800 hectares. At its heart is DO27, a kimberlite pipe covering 9 hectares—dwarfing its neighboring operations. The pipe lies under a one-square-kilometre shallow lake with an average depth of just four metres, making it an ideal candidate for future development with minimal overburden removal.

Extensive exploration efforts have drilled 114 core holes and 46 large diameter reverse circulation holes, confirming 19.5 million tonnes of indicated ore grading at 0.94 carats per tonne. This equates to approximately 18.2 million carats. Moreover, exploration data indicates a potential additional resource of 6.5 to 8.5 million tonnes at similar grades lurking beneath current drill limits. Early valuations in 2008 estimated diamond prices at US$72 per carat; those numbers have now surged to between US$90 and US$100 per carat in today’s market.

Revolutionizing Diamond Mining Through Water

But the true game-changer may not lie in the stones themselves, but how they’ll be mined. The unique composition of the DO27 ore—extremely soft and low in density—makes it ideal for Underwater Remote Mining (URM), a cutting-edge technique still rarely applied in the diamond industry. Arctic Blue is exploring the use of the “Crawler” system developed by Royal IHC, a Netherlands-based engineering leader in deep-sea and trenching technology.

This crawler, tested at the Ekati mine, offers continuous, non-blasting extraction up to 400 metres deep. It scoops up ore with a drum cutter, pumps it to a floating platform, and then transports it to a dewatering plant. Arctic Blue believes this method will not only reduce operational costs but also significantly minimize the project’s environmental footprint—ushering in a new era of clean and efficient mining.

Executive Chair Patrick Evans emphasized the opportunity to extend the life of Canada’s existing diamond infrastructure or, alternatively, build a bespoke recovery facility in Yellowknife. DO27 could yield over 80 carats per tonne of diamond concentrate using a simple onsite washing method that removes fine, non-diamond-bearing material. This reduces transportation needs and streamlines recovery—critical factors in Arctic mining economics.

Environmental Caution Meets Engineering Ambition

While the WO Project remains in a care-and-maintenance phase, Arctic Blue is conducting in-depth environmental, geological, and engineering assessments. These will help determine whether the future lies in full-scale URM deployment, conventional open-pit mining, or a hybrid solution.

The project’s unique geology and Arctic Blue’s aggressive vision for development highlight the shifting dynamics in Canada’s diamond landscape. As legacy mines approach the end of their lifespans, the DO27 kimberlite could be the anchor that holds Canada’s diamond industry together—and maybe even lifts it to new heights.

A New Frontier for Canadian Diamonds

Arctic Blue Diamonds Ltd. is not merely preserving Canada’s reputation as a top diamond exporter—it is rewriting the playbook. By blending innovative mining with sustainability and market-savvy distribution, the company is aligning itself with global trends and investor sentiment. And with Canadian-origin fluorescent diamonds already available through its online arm, Arctic Blue LLC, the company is poised to control both the mining and marketing ends of the diamond value chain.

This is not just another mining acquisition—it’s a signal that the Canadian diamond sector is far from finished. With Arctic Blue’s ambitions rooted deep in the Northwest Territories, the global industry should prepare for a new, bold player determined to shine.

The decisions Arctic Blue makes over the coming months could very well determine if the Northwest Territories remains a global powerhouse for diamond production or simply a chapter in mining history. What’s clear is that Arctic Blue Diamonds is not just betting on the future—it’s digging it up. For the latest Canada Jewelry News, keep on logging to Gems News.