Mountain Province Diamonds announces that it has completed an updated mineral reserve and mineral resource estimate and life of mine plan (the LoM) in respect of the Gahcho Kué Mine, a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%), located 280 km northeast of Yellowknife, Northwest Territories. The updated LOM is the result of engineering work done to steepen the pit walls, resulting in realization of further value at the Gahcho Kué mine.
In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, a supporting technical report effective April 22, 2024 will be filed within 45 days of this news release (the 2024 Technical Report). The 2024 Technical Report will supersede the technical report entitled NI 43-101 Technical Report Gahcho Kué Mine Northwest Territories Canada, having an effective date of December 31, 2021 and a report date of March 28, 2022 (the 2022 Technical Report).
In the context of the LoM of Gahcho Kué Mine, the key takeaways are, 1: Mountain Province’s 49% share of operating cash flow from remaining open pit mining operations is estimated at $626 million. Ore processing is now estimated to finish early 2031, not 2030 as estimated in the 2022 Technical Report.
On a full-year basis from 2024 to 2031 the total diamond recovery is estimated to be 36.3 million carats compared to 30.8 million carats in the 2022 Technical Report.
Mark Wall, the Company’s President and Chief Executive Officer, commented: “This is an important update to the production profile of the Gahcho Kué Mine. The projected operational after-tax cash flow attributable to Mountain Province for the balance of the open pit life of mine plan of $626 million demonstrates the value of the Gahcho Kué mine. The diamond market is considerably softer than the period when the previous 2022 Technical Report was completed, which creates upside opportunity to the economics should prices improve.
These economics exclude inferred resources included in the new pit design.
