TORONTO and NEW YORK, December 7,
2015 /PRNewswire/ --
- Overall project more than 80 percent complete
- On plan and budget for first production in H2 2016
- Snap Lake Care and Maintenance Facilitates Operational
Readiness
Shares Issued and Outstanding: 158,966,333
TSX: MPV
NASDAQ: MDM
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPV,
NASDAQ: MDM) is pleased to announce that development of the Gahcho
Kué diamond mine is progressing according to plan and budget with
the overall project more than 80 percent complete and on track for
first production during H2 2016.
Patrick Evans, Mountain Province
President and CEO, commented: "We continue 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."
Mountain Province was advised
early last week of the planned cessation of operations at the De
Beers Snap Lake mine and the opportunities this would afford
selected Snap Lake employees to be hired at Gahcho Kué. 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.
Mr. Kim Truter, Chairman of the
Gahcho Kué JV Management Committee and De Beers Canada CEO,
commented: "The regrettable decision relating to 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 Gahcho Kué to
support operational readiness."
Mr. Evans added: "Procurement under the capital program is 99
percent complete and preparations for the 2016 ice road deliveries
are well advanced. The project continues to meet our lending
group's tests-to-completion and the final 2015 draw-down against
the project finance facility has occurred. During 2015 a total of
US$158M has been drawn against the
US$370M facility. Mountain Province is fully funded to
commercial production and also has a US$75M cost overrun facility in place."
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest
Territories. Gahcho Kué is the world's largest new diamond
mine and projected to be amongst the highest margin diamond mines
due to the high grade and open-pit nature of the operation.
The Gahcho Kué Project consists of a cluster of four
diamondiferous kimberlites, three of which have a probable mineral
reserve of 35.4 million tonnes grading 1.57 carats per tonne for
total diamond content of 55.5 million carats.
A 2014 NI 43-101 feasibility study report filed by Mountain Province (available on SEDAR)
indicates that the Gahcho Kué project has an IRR of 32.6%.
The Gahcho Kué diamond mine is expected to produce an average of
4.5 million carats a year over a 12 year mine life.
Qualified Person
This news release has been prepared under the supervision of
Carl G. Verley, P.Geo., who serves
as the qualified person under National Instrument 43-101.
Forward-Looking Statements
This news release includes certain information that may
constitute "forward-looking information" under applicable Canadian
and US securities legislation. Forward-looking information
includes, but is not limited to, the Company's strategic plans,
future operations, future work programs and objectives.
Forward-looking information is necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
Mountain Province Diamonds Inc.: Patrick
Evans, President and CEO, Phone: +1-416-361-3562, E-mail:
info@mountainprovince.com, http://www.mountainprovince.com