TSX and OTC: MPVD
TORONTO, Aug. 21, 2024 /PRNewswire/ -- Mountain Province
Diamonds Inc. (TSX: MPVD) and (OTCQX: MPVD) ("Mountain Province", or the "Company") is
pleased to announce today 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 ("NI 43-101"), 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").
Highlights
- 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.
The engineering work done to steepen the pit walls has
resulted in ore that is deeper in the open pit coming into the mine
plan in addition to a small reduction in waste stripping.
On a full-year basis for 2024 the updated Technical Report
has the mine planning to produce 36.3 million carats (on a 100%
basis) from the beginning of 2024 to the end of the life of mine,
whereas the 2022 Technical Report had 30.8 million carats being
produced from the beginning of 2024 to the end of the life of the
mine. Included in the production plan is moving to a
lower Bottom Cut-off from 1.1mm to 1.0mm in 2027 which coincides
with expected lower global production due to mine closures from
2026 onward.
I am pleased to update the market on the results of the
engineering improvements to the mine. We will continue to
look for opportunities to optimize production and manage
costs."
Life of Mine
Updated geotechnical pit slope recommendations since the 2022
Technical Report allowed the various pits to be redesigned with
steeper walls allowing additional kimberlite to be captured within
the pits and an updated LOM plan. The updated LOM plan
extends production through 2031 and reflects an increase of 2.7 Mt
at 2.0 c/t (5.5 Mcts), relative to the prior LOM plan.
Updated Mineral Resource and Reserve Estimate
There have been three block model updates for the Gahcho Kué
Mine since the 2022 Technical Report, each of which have increased
the overall volume of the ore bodies. The interpretation of
the external kimberlite contacts was updated based on mining data
including blast holes logs and face mapping contact pickups. This
information allowed projection/interpretation of changes to 3-4
benches below the current mining benches, providing a more probable
view of kimberlite volumes to be mined in the short term. In
addition, several drillholes from the Resource Extension Program
were included in the update to Hearne and the surrounding country
rock models.
Mineral Resource Estimate
|
Resource
|
Classification
|
Tonnes
(Mt)
|
Carats
(Mct)
|
Grade
(c/t)
|
|
5034
|
Indicated
|
6.9
|
15.0
|
2.16
|
|
Inferred
|
1.4
|
2.5
|
1.82
|
|
Hearne
|
Indicated
|
0.6
|
1.2
|
1.95
|
|
Inferred
|
1.5
|
2.8
|
1.82
|
|
Tuzo
|
Indicated
|
11.5
|
18.1
|
1.57
|
|
Inferred
|
10.3
|
18.4
|
1.78
|
|
Wilson
|
Indicated
|
2.3
|
2.1
|
0.89
|
|
Inferred
|
-
|
-
|
-
|
|
Summary
(In-Situ)
|
Indicated
|
21.4
|
36.4
|
1.70
|
|
Inferred
|
13.3
|
23.7
|
1.79
|
|
Stockpiles
|
Indicated
|
3.3
|
2.4
|
0.73
|
|
Inferred
|
-
|
-
|
-
|
|
Grand Total
Inclusive
Resource
|
Indicated
|
24.7
|
38.8
|
1.57
|
|
Inferred
|
13.3
|
23.7
|
1.79
|
|
Notes:
|
|
|
|
|
|
(1) Mineral
Resources are reported at a bottom cut-off of 1.0
mm.
Mineral Resources are
constrained within an optimized pit shell using a 1.6 revenue
factor. Prices used to determine optimal pit shell varied by facies
and ranged from 71 US$/ct to 146 US$/ct with an exchange rate of
1.30 CAD:USD. Process recovery of the diamonds was assumed to be
100% Operating costs used to determine the optimal pit shell
include an open pit mining cost of 4.1 C$/t mined and a processing
cost of C$72.0/t milled;
|
|
(2) Mineral
Resources are not Mineral Reserves and do not have demonstrated
economic viability.
|
|
(3) Tonnage
quoted as dry metric tonnes.
|
|
(4)
Resources are inclusive of Indicated Resources that have been
converted to Probable Reserves.
|
|
(5)
Resources have been depleted of any material that was processed
prior to and including Apr 22, 2024.
(6) MPD's
attributable portion of mineral resources is 49%.
|
|
Mineral Reserve Estimate
The mineral reserves for the Gahcho Kué Mine were updated with
the new mine plan and updated mineral resource estimate and have an
effective date of April 22,
2024.
|
Pipe
|
Classification
|
Tonnes
(Mt)
|
Carats
(Mct)
|
Grade
(c/t)
|
|
5034
|
Probable
|
6.1
|
12.3
|
2.01
|
|
Hearne
|
Probable
|
0.3
|
0.5
|
1.54
|
|
Tuzo
|
Probable
|
11.3
|
17.3
|
1.52
|
|
Wilson
|
Probable
|
2.5
|
2.1
|
0.84
|
|
In-Situ
Total
|
Probable
|
20.3
|
32.1
|
1.59
|
|
Stockpile
|
Probable
|
3.3
|
2.4
|
0.73
|
|
Total
|
Probable
|
23.6
|
34.6
|
1.47
|
|
Notes:
|
|
|
|
|
|
(1) Mineral
Reserves are reported within detailed designed pits and confirmed
to have a positive economic return. Economic evaluation
is based a LOM production schedule using an average diamond price
of $US95/ct, a process recovery of 100%, an exchange rate of 1.30
CAD:US, a mining opex of $5.9/t mined, a processing opex of $58.5/t
milled.
(2) Mineral
Reserves are reported at a variable bottom cut-off (BCO) based on
the LOM production schedule. A BCO of 1.1 mm is used for
2024-2026, and a BCO of 1.0 mm is used for 2027-2031.
|
|
(3) Mineral
Reserves have been depleted to account for mining and processing
activity prior to and including Apr 22, 2024.
|
|
(4) Mineral
Reserves are based upon the updated resource model (2024) and
therefore reflect any changes to the estimation
of tonnes, grade and contained carats within that
resource.
(5)
Mineral Reserves may be subject to legal, political,
environmental and other risks and uncertainties. See Cautionary
Note Regarding Forward-Looking Statements. The QP is not
aware of any legal, political, environmental or other risk factors
that might materially affect the estimate of Mineral
Reserves.
(6)
CIM definitions were followed for Mineral
Reserves.
(7)
Tonnages are rounded to the nearest 100,000 t, diamond
grades are rounded to one decimal place to properly reflect the
Reserve estimate accuracy.
(8)
Tonnage and grade measurements are in metric
units; contained diamonds are reported as millions of
carats.
(9)
MPD's attributable portion of mineral reserves is
49%.
|
|
Technical Information and Technical Report Filing
The Mineral Resource and Mineral Reserve estimates for the
Gahcho Kué Mine and the other scientific and technical information
contained in this news release was prepared by Tysen Hantelmann and Mike Makarenko, each a Qualified Persons
("QP"), as defined in NI 43-101 and independent of the
Company. Data verification processes undertaken in the previous
Technical Reports have been reviewed. The QPs are of the opinion
that the data verification is adequate for use in the 2024
Technical Report.
The 2024 Technical Report will be filed under the Company's
profile on SEDAR+ at www.sedarplus.ca within 45 days of this news
release. Readers are encouraged to read the 2024 Technical Report
in its entirety, including all qualifications, assumptions,
exclusions and risks that relate to the Mineral Resource, Mineral
Reserves and LOM. The 2024 Technical Report is intended to be read
as a whole, and sections should be read or relied upon out of
context.
About the Company
Mountain Province Diamonds is a 49% participant with
De Beers Canada Inc. in the Gahcho Kué diamond mine located
in Canada's Northwest Territories. The Gahcho Kué Joint
Venture property consists of several kimberlites that are actively
being mined, developed, and explored for future development. The
Company also controls approximately 112,000 hectares of mineral
claims and leases surrounding the Gahcho Kué Mine that include an
Indicated mineral resource for the Kelvin kimberlite and Inferred
mineral resources for the Faraday kimberlites.
Forward-Looking Information
This news release contains "forward looking statements" or
"forward looking information" (collectively, "Forward Looking
Statements") that involve a number of risks and uncertainties.
Forward Looking Statements are statements that are not historical
facts and are generally, but not always, identified by the use of
forward looking terminology such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"outlook", "intends", "anticipates", "believes", or variations of
such words and phrases or that state that certain actions, events
or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved, or the negative of any of these terms or
similar expressions. The Forward-Looking Statements in this news
release relate to, among other things; the price of diamonds; mine
life (LOM); production forecasts; the estimation of Mineral
Reserves and Mineral Resources and the realization of such mineral
estimates; information contained in the LOM plan.
Forward Looking Statements are based on certain key
assumptions and the opinions and estimates of management and the
QPs, as of the date such statements are made, and they involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any other future results,
performance or achievements expressed or implied by the Forward
Looking Statements.
In addition to factors already discussed in this news
release, such factors include, among others, include the
development of operation hazards that could arise in relation to
the return of COVID-19, including, but not limited to protocols
which may be adopted to reduce the spread of COVID-19 and any
impact of such protocols on Mountain Province's business, operations and
prospects; variations in ore grade or recovery rates; changes
in market conditions; the global economic climate; changes in
project parameters; mine sequencing; production rates and
estimates; dependence on the Gahcho Kué Mine; cash flow; risks
relating to financing requirements; insurance risks; failure
by the Company to maintain its obligations under its debt
facilities; risks relating to the availability and timeliness
of permitting and governmental approvals; regulatory and licensing
risks; environmental and climate risks; supply of, and demand
for, diamonds; fluctuating commodity prices and currency exchange
rates; the possibility of project cost overruns or
unanticipated costs and expenses; the availability of skilled
personnel and contractors; labour disputes and other risks of the
mining industry; and failure of plant, equipment or processes to
operate as anticipated.as well as those risk factors discussed or
referred to in any other documents (including without limitation
the Company's most recent Annual Information Form filed from time
to time with the securities regulatory authorities in all provinces
and territories of Canada and
available on SEDAR at www.sedarplus.com.
The reader has been cautioned that the foregoing list is not
exhaustive of all factors which may have been used. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in Forward Looking Statements, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
Forward Looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.
The Company's Forward-Looking Statements reflect current
expectations regarding future events and speak only as of the date
hereof. Unless required by securities laws, the Company undertakes
no obligation to update Forward Looking Statements if circumstances
or management's estimates or opinions should change. Accordingly,
readers are cautioned not to place undue reliance on Forward
Looking Statements.
FOR FURTHER INFORMATION, PLEASE CONTACT: Mark Wall, President, and CEO, 151 Yonge Street,
Suite 1100, Toronto, Ontario M5C
2W7, Phone: (416) 361-3562, E-mail: info@mountainprovince.com
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