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.

Gahcho Kué consists of a cluster of kimberlites, three of which have a probable mineral reserve of about 31.3-million tonnes grading at 1.57 ct/t (about 49-million carats).

The project will have an estimated production rate of three-million tonnes of ore a year and 4.5-million carats a year.

The project design is based on the openpit mining of the 5034, Hearne and Tuzo deposits in a sequential fashion.

Mine plans call for the extraction of 233.7-million tonnes of waste and 31.3-million tonnes of ore over 11 years using standard drill/blast and truck/shovel equipment and pit designs, which are similar to those of other openpit diamond mines operating in the area.

Ore will be fed to a three-million-tonne-a-year processing plant, with three stages of crushing, dense-medium 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.

Value
An estimated capital cost of C$650-million to C$750-million.

Duration
The start of production is targeted for 2014.

Latest Developments
De Beers, as operator of the Gahcho Kué project, has entered into an Impact Benefit Agreement with the Tlicho government for the proposed mine. The agreement establishes a framework for De Beers and the Tlicho government to work together over the life of the mine, enabling participation by the Tlicho government in the opportunities that the mine provides.

The agreement was signed in Yellowknife on Friday, January 24, 2014.

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

On Budget and on Time?
Too early to state.

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.