A resource and reserve update from Mountain Province Diamonds (TSX: MPVD) reveals the plant at the Gahcho Kué mine will be recovering stones into 2031, a year later than earlier estimated. The mine, located 280 km northeast of Yellowknife, N.W.T., is a joint venture between owner-operator De Beers Canada (51%) and Mountain Province (49%).
The update follows engineering work to steepen the walls of the open pit. This change will allow additional kimberlite to be captured within the mine plan and represents an increase of 2.7 million tonnes at 2 carats per tonne, or 5.5 million carats in the resource.
“This is an important update to the production profile of the Gahcho Kué mine,” Mountain Province president and CEO Mark Wall said in a release on Wednesday. “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.”
As part of the latest work, the resource and reserve estimates have also been updated. The total probable reserves (including stockpiles) total 23.6 million tonnes grading 1.47 carats per tonne and containing 34.6 million carats.
Using a cut-off size of 1 millimetre, the indicated resource is 24.7 million tonnes grading 1.57 carats per tonne, containing 38.8 million carats. The inferred resource is 13.3 million tonnes at 1.79 carats per tonne, containing 23.7 million carats. These numbers also reflect indicated material in stockpiles.
“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,” Wall added.
On a 100% basis, the Gahcho Kué mine is expected to produce 36.3 million carats from the beginning of 2024 to the end of its mine life. That is an 18% increase in recovered carats from the 43-101 report made in 2022.
Mountain Province shares were flat at 14¢ apiece on Friday, valuing the company at $30.7 million. Its shares traded in a 52-week range of 10¢ and 46¢.
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