Mountain Province, De Beers approve C$31m spend for NWT project

29th May 2012 By: Matthew Hill

JOHANNESBURG (miningweekly.com) – Toronto’s Mountain Province Diamonds on Monday said it and joint venture partner De Beers had approved a C$31-million budget up to the end of March at the Gahcho Kué project in the Northwest Territories.

The funding will mainly go towards preparation for construction to start, permitting, engineering, and the 2013 winter road to the diamond deposit.

Long-lead items and a feasibility study update will also receive some of the money, TSX-listed Mountain Province said.

Gahcho Kué, Chipewyan for ‘a place where big rabbits are found’, is located 280 km north-east of Yellowknife and 80 km east of De Beers’ existing Snap Lake mine.

A 2010 feasibility study predicted first production in 2014, at a capital cost of around C$600-million.

TSX-listed Mountain Province owns 49% of the project, with De Beers holding the rest.