Name and Location
Gahcho Kué diamond project, Northwest Territories (NWT), Canada.

Client
Gahcho Kué Joint Venture (JV) – a collaboration between De Beers Canada (51%) and Mountain Province Diamonds (49%).

Project Description
Gahcho Kué, which is Chipewyan for ‘a place where big rabbits are found’, is located at Kennady Lake, 280 km north-east of Yellowknife and 80 km east of De Beers’ existing Snap Lake mine, in NWT. The diamond prospect is one of the largest new diamond projects under development globally.

The project consists of the Hearne North and South pipes; the 5034 West pipe, the Central and North-East pipes; the 5034 South pipe; the 5034 North pipe; Wallace; and the Dunn Sheet, Tuzo and Tesla diamondiferous kimberlite pipes, sheets and dykes.

A revised and updated feasibility study on the Gahcho Kué project has confirmed the remote project’s robust metrics.

The deposit has current National Instrument 43-101-compliant total probable reserves of 55.5-million carats, contained in 35.4-million tonnes grading 1.57 ct/t.

The mine life has been estimated at 12 years, during which the operation will produce about 53.4-million carats at an average yearly rate of 4.45-million carats using standard drill and blast, and truck and shovel, equipment and pit designs, which are similar to those of other openpit diamond mines operating in the area.

The average yearly output for the first three years of full production from 2017 to 2019 will be about 5.6-million carats.

Ore will be fed to a three-million-tonne-a-year processing plant, with three stages of crushing, dense-media separation and X-ray/grease diamond-recovery circuits.

Supporting infrastructure includes a 14.1 MW packaged diesel power plant, a 1 350 m gravel airstrip, a five-bay truck shop, an emulsion plant, a 40-million-litre fuel storage facility and a 432-bed accommodation/office complex.

Net Present Value/Internal Rate of Return
None stated.

Value
According to the revised and updated feasibility study, the project will cost C$859-million to construct and the operation will require working capital of C$80-million.

Costs to ramp up the operation to January 2017 have been estimated at C$82-million.

Duration
Production aims to start in 2016.

Latest Developments
The Gahcho Kué diamond mine is progressing according to plan and within budget with the overall project more than 80% complete and on track for first production during the second half of 2016.
 
Mountain Province President and CEO Patrick Evans has commented that  the company continues to make excellent progress at Gahcho Kué. Key areas of focus over the next six months are commissioning of the primary crusher and diamond plant, as well as preparation for operational readiness.
 
The planned cessation of operations at the De Beers Snap Lake mine will enable Mountain Province to hire Snap Lake employees for the Gahcho Kué operation. Forty-one Snap Lake employees have been transferred to Gahcho Kué and a further 60 will be transferred next year as the mine prepares for production. 
 
The decision to cease operations at Snap Lake will have no impact on plans for the Gahcho Kué mine. On the contrary, Gahcho Kué will benefit from the availability of trained and experienced employees who are being transferred to the mine to support operational readiness, Mountain Province has said in a statement.
 
Procurement under the capital programme is 99% complete and preparations for the 2016 ice road deliveries are well advanced.

The project continues to meet Mountain Province’s lending group’s tests to completion, with the final 2015 drawdown against the project finance facility has also been completed.

Key Contracts and Suppliers
JDS Energy & Mining (feasibility study).

On Budget and on Time?
Construction remains within budget and on schedule for first production to start in the second half of 2016.

Contact Details for Project Information
De Beers Canada external and corporate affairs tel + 1 416 645 1710.
Mountain Province Diamonds, tel +1 416 361 3562, fax +1 416 603 8565 or email info@mountainprovince.com.