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, 5034 South and the 5034 North pipes;  the Central and North-East pipes; Wallace; and the Dunn Sheet, Tuzo and Tesla diamondiferous kimberlite pipes, sheets and dykes.

A revised and updated feasibility study on the remote Gahcho Kué project has confirmed its 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
The project has an internal rate of return estimated at 32.6%.

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
Gahcho Kué has achieved mechanical completion of the primary crusher, with commissioning of the process plant continuing to progress well.

Based on the progress to date, the project is expected to start production in the third quarter of this year, the specifics of which will depend on progress of the remaining commissioning.

The permanent staff complement of the mine is currently 290, including 91 experienced employees, transferred from the De Beers Snap Lake mine.
 
In anticipation of first production, Mountain Province has concluded all the necessary contract arrangements receive, sort and sell its share of diamond production from Gahcho Kué.  
 
The project also continues to meet De Beers’ lending group’s tests-to-completion with $47-million advanced to fund cash calls during the second quarter. A total of $278-million has been drawn against the $370-million facility.

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

On Budget and on Time?
Construction remains within budget and on schedule.

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.