Mountain Province Diamonds,
which is 49% joint-ventured up with the Canadian arm of the world’s leading
diamond company, De Beers, on the planet’s largest new diamond mine, the
10.35k-acre Gahcho Kue project at Kennady Lake up in the Northwest Territories
(just 66 miles east of De Beers’ Snap Lake diamond mine on federal lands), took
some time out today to update markets on the healthy status of the project’s
development.
With everything on-track for
a production start by Q3 2016, Gahcho Kue stood at 17% completion with the
close of last month and both parties have been noted by De Beers as being quite
happy with overall progress to date. Confidence is running high in the JV with
no changes to their projected development schedule. The full Land Use Permit
and Class A Water Rights look well in hand for the target date of sometime in the
second half of this year and we should see a feasibility update by the end of
March. The feasibility update will have the latest reserve statement, as well
as timely capital/operating cost estimates and the latest project economics,
with additional details on project financing emerging as the study becomes
available.
Equipment and supplies have
been steadily streaming into the site over the 2014 ice road, with some 670
truckloads having already arrived and another 100 set for the end of the month.
The JV now has roughly 120 people on-site prepping and this number will
definitely rise as the year advances, with a 700-person target set for the peak
construction interval. All work to date has been free of any lost-time injuries
and the JV already has the prefab units on-site for their main camp. With the
airstrip construction started and a usage target for both the airstrip and the
main camp set for around the middle of the year, things are now really starting
to pick up at Gahcho Kue.
They have eight large (17.7
cubic feet each) fuel tanks installed and construction of two even larger tanks
has commenced (63.6k cubic feet each), with fuel stockpiling towards a
twelve-month operational window already under way. Deep drilling efforts have
been brisk, with the first three holes at the Tuzo Pipe targeting approximately
2,460-foot depths started last month and subsequently sticking at around the
1,300-foot mark. They are currently still going at the first hole via a wedge
re-drill about 300 feet up and have now brought in a second rig to expedite the
process, leaving markets to lick their lips over a forthcoming update on more
details of their drilling progress.
There are four distinct
diamondiferous kimberlites at Gahcho Kue (5034, Hearne, Tuzo and Telsa) and while
the smaller Tesla target is not in the mine plan (only about an acre), it will
likely be exploited towards the end of the mine’s life. The three primary
targets at Gahcho Kue contain a probable mineral reserve of some 31.3M tonnes
at 1.57 carats per tonne (49M CT total). All data contained in today’s update
was prepared under supervision of NI 43-101 Qualified Person, MDM’s chief geo
and a veteran geologist in his own right, Carl G. Verley, P.Geo. (University of
British Columbia, 1974), a registered Professional Geoscientist with the
British Columbia Association of Professional Engineers and Geoscientists.
For more information on
Mountain Province Diamonds, visit www.MountainProvince.com
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
