TSX and NASDAQ: MPVD
TORONTO and NEW YORK, April 24,
2018 /CNW/ - Mountain Province Diamonds Inc. ("Mountain
Province", the "Company") (TSX and NASDAQ: MPVD) today announces
production results for the first quarter ended March 31, 2018 from the Gahcho Kué Diamond Mine
("GK Mine").
Q1 Production Highlights
- In the first quarter of 2018, the GK Mine plant recovered
approximately 1,641,000 carats on a 100% basis for an average grade
of approximately 2.09 carats per tonne, 89% and 18% higher than
what was achieved during the same period last year
respectively.
- Pre-stripping of the Hearne pit continued on schedule during
the quarter and the operations team anticipates mining first ore by
the end of April.
- The shovel and trucks included in the guided capital
expenditures were delivered to site in the first quarter.
Assembly and commissioning of the shovel is complete, and the
completion of the truck fleet is expected by end of the second
quarter.
Q1 Production Statistics
|
|
|
|
|
2018 Q1
|
2017
Q11
|
YOY
Variance
|
|
|
|
|
Total tonnes mined
(100%) (overburden, waste and ore)
|
8,202,000
|
7,670,000
|
7%
|
Ore tonnes mined
(100%)
|
741,000
|
611,000
|
21%
|
Ore tonnes processed
(100%)
|
786,000
|
492,000
|
60%
|
Carats recovered
(100%)
|
1,641,000
|
867,000
|
89%
|
Carats recovered (49%
share)
|
804,000
|
425,000
|
89%
|
Recovered grade
(carats per tonne)
|
2.09
|
1.77
|
18%
|
|
|
1.
|
Figures for 2017
Q1 reflect that commercial production at the GK Mine was not
declared until March 1, 2017.
|
Said David Whittle, the Company's
Interim President and Chief Executive Officer, "We have had a solid
start to the year in 2018 and these production results keep us on
track to achieve our full-year 2018 production guidance of 6.3 to
6.6 million carats recovered on a 100% basis. The grades
continue to perform well at the GK Mine and are a key driver of the
production results. The plant also continues to achieve
higher throughput than originally anticipated, having achieved and
broken daily throughput records in a given 24 hour period during
the first quarter of 2018. The winter road program was safely
and successfully completed, capping off a great first full year of
commercial production at the GK Mine. The Gahcho Kué team is
to be congratulated for achieving such a strong performance."
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, consisting of a
cluster of four diamondiferous kimberlites, three of which are
being developed and mined under the initial 12 year mine plan.
Qualified Person
The disclosure in this news release
of scientific and technical information regarding Mountain Province's mineral properties has
been reviewed and approved by Keyvan
Salehi, P.Eng., MBA, a Qualified Person as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects.
Caution Regarding Forward Looking
Information
This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian and United
States securities laws concerning the business, operations
and financial performance and condition of Mountain Province
Diamonds Inc. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and mine life of the project of
Mountain Province; the realization
of mineral reserve estimates; the timing and amount of estimated
future production; costs of production; the future price of
diamonds; the estimation of mineral reserves and resources; the
ability to manage debt; capital expenditures; the ability to obtain
permits for operations; liquidity; tax rates; and currency exchange
rate fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can,"
"plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and
other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking
statements are based on the opinions and estimates of management at
the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on factors
and events that are not within the control of Mountain Province and there is no assurance
they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and currency
exchange rates, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Mountain
Province believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the
date of this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to
update forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements.
Statements concerning mineral reserve and resource estimates may
also be deemed to constitute forward-looking statements to the
extent they involve estimates of the mineralization that will be
encountered as the property is developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to
a joint venture under which Mountain
Province is not the operator. Mountain Province is exposed to actions taken
or omissions made by the operator within its prerogative and/or
determinations made by the joint venture under its terms.
Such actions or omissions may impact the future performance of
Mountain Province. Under its current note and revolving
credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends
is at the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
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SOURCE Mountain Province Diamonds Inc.