^a SRK Consulting, Suite 800, 1066 West Hastings Street, Vancouver, B.C., Canada V6E 3X2

^b BHP Billiton Diamonds Inc., Canada

^c Mineral Services Canada Inc., Canada

As a test of underground mining methods and to provide access to the lower elevations of the Panda and Koala pipes, the Koala North pipe is being developed for underground mining. Initially, the top 40 m of the pipe were mined as an open pit to provide grade information and a prepared surface for the transition to underground mining. Currently, Koala North is being developed as an open-benching, mechanized, trackless operation. Although the method was successfully used at several De Beers diamond operations in South Africa, it has never been tested in an Arctic environment.

This case study describes basic geology, mining method layout and ongoing geological and geotechnical investigation. From the beginning of underground development, geotechnical daily routines have been fully integrated within the technical services department, which supports the operation. Geotechnical, geological and structural information obtained from underground mapping and core logging is compiled, processed, reviewed and analyzed on site by the geotechnical staff. Conclusions and recommendations are implemented as part of the operations in a timely manner. This ongoing “live” process enables the operators to make the most efficient use of resources both for ground support and excavations as well as to address safety issues, which are the top priority.