Mountain Province Diamonds Gears Up for Inaugural Gahcho Kué Diamond Tender in Antwerp Following Exceptional Production Ramp-Up

Mountain Province Diamonds Inc. has announced a significant milestone for the global diamond industry: the first tender sale of its share of diamonds from the state-of-the-art Gahcho Kué mine in Canada will take place in January 2017 in Antwerp. This highly anticipated event marks a crucial step for the company, which plans to follow this inaugural sale with regular tenders approximately every five weeks, establishing a consistent presence in the international diamond market. The news follows a remarkably successful production ramp-up, which has exceeded initial expectations.

Gahcho Kué: A New Dawn for Diamond Production

The Gahcho Kué mine, a joint venture between Mountain Province Diamonds (49%) and De Beers Canada (51%), represents the world’s largest new diamond mine. Located in Canada’s resource-rich Northwest Territories, it began its production ramp-up on August 1, 2016. The operational progress has been nothing short of impressive. In the three months leading up to September 30, 2016, the processing plant handled approximately 130,000 tonnes of ore. This robust processing capacity translated into a total production of 198,000 carats on a 100 percent basis. Mountain Province Diamonds’ proportionate share of this output stands at an impressive 97,000 carats, underscoring the immediate impact of the mine’s commencement.

The successful early stages of production validate the significant investment and meticulous planning that went into bringing Gahcho Kué online. Industry experts and investors alike are closely monitoring the mine’s output, anticipating its contribution to the global diamond supply chain. The consistent flow of high-quality diamonds from a new, ethically sourced origin like Canada is particularly valuable in today’s market, where provenance and responsible mining practices are increasingly important to consumers and stakeholders.

Accelerated Operations and Mineral Extraction

Beyond the initial processing figures, the broader mining operations at Gahcho Kué have also demonstrated remarkable efficiency. For the nine-month period ending September 30, 2016, total mining activities, encompassing both waste and ore extraction from the 5034 open pit, reached approximately 15.9 million tonnes. This substantial volume reflects the comprehensive and large-scale nature of the mining project. Furthermore, the company reported that approximately 17,000 tonnes of ore had been strategically stockpiled. This stockpiling ensures a continuous feed for the processing plant, optimizing operational flow and supporting consistent diamond recovery even amidst varying mining conditions. Such meticulous management of resources highlights the operational excellence driving Gahcho Kué’s success.

The ability to efficiently manage such large volumes of material, both waste and valuable ore, is a testament to the advanced mining techniques and skilled workforce employed at the Gahcho Kué site. This early success in material handling and ore processing is a strong indicator of the mine’s potential to maintain high levels of productivity and achieve its long-term output targets. It also contributes to the overall stability and predictability of the mine’s output, a key factor for sustained market confidence.

The Allure of Special and Fancy Color Diamonds

The Gahcho Kué mine is not only producing significant volumes of diamonds but also yielding exceptional quality stones, including highly coveted fancy colored and special diamonds exceeding 10.8 carats. These unique gems are often subject to separate bidding processes, frequently occurring on an almost monthly basis, reflecting their rarity and premium value in the market. In August, the bid for these exclusive stones was successfully secured by De Beers, the majority partner in the mine. However, demonstrating its own growing capability and strategic market presence, Mountain Province Diamonds successfully won the bid for September’s special stone parcel.

Among the treasures now owned by Mountain Province and slated for inclusion in the January 2017 sale are a magnificent 50.25 carat gem quality diamond and three exquisite fancy yellow diamonds, each weighing between 3 and 5 carats. The recovery of such a substantial gem quality diamond—the largest recovered from Gahcho Kué to date—is a significant event, confirming the mine’s capacity to produce truly extraordinary stones that command premium prices. Similarly, the presence of fancy yellow diamonds adds another layer of excitement, as these vibrant stones are highly prized for their unique color and rarity, appealing to a distinct segment of the luxury market. These discoveries not only enhance the value proposition of the upcoming tender but also serve as a compelling indicator of the rich and diverse diamond population within the Gahcho Kué kimberlite pipes.

Leadership’s Optimism and Strategic Vision

Patrick Evans, President and CEO of Mountain Province Diamonds Inc., expressed immense satisfaction with the mine’s performance. “We are very pleased that ramp-up production commenced six weeks ahead of schedule,” commented Mr. Evans. This early start not only demonstrates operational efficiency but also signifies a faster path to revenue generation and commercial production. He further elaborated, “Mining and processing continues to progress well, and Gahcho Kué remains on track to achieve commercial production in early 2017.” This reaffirmation of the timeline instills confidence in investors and stakeholders regarding the mine’s future profitability and stability.

Mr. Evans also highlighted the significance of the recent diamond discoveries, particularly the substantial 50-carat gem. “The 50-carat diamond recovered in September is the largest diamond recovered to date and provides further confirmation that Gahcho Kué has a population of large, high-quality gem diamonds,” he stated. This discovery is a powerful testament to the mine’s potential to yield exceptional individual stones, which can significantly enhance the value of its overall output. Furthermore, the recovery of fancy yellow diamonds generated considerable excitement: “It is also exciting to see a population of good size fancy yellow diamonds, which offers encouragement that we’ll see further fancy diamonds as production ramps up.” This outlook suggests that as the mine matures and production volumes increase, there is a strong likelihood of uncovering more rare and valuable fancy colored diamonds, further solidifying Gahcho Kué’s reputation as a world-class source of exquisite gems.

Gahcho Kué: A Global Powerhouse in the Diamond Industry

The Gahcho Kué diamond mine is strategically positioned as a major player in the global diamond supply. Situated in Canada’s pristine Northwest Territories, it is recognized as the world’s largest new diamond mine, a title that underscores its monumental scale and projected impact on the industry. The mine is anticipated to produce an average of 4.5 million carats annually over its impressive 12-year mine life. This consistent high-volume output is critical for meeting global demand and positions Canada as a reliable source of quality diamonds.

Geologically, Gahcho Kué is comprised of a cluster of four diamondiferous kimberlites. These ancient volcanic pipes are the primary source of diamonds, and their discovery and development are central to the mine’s long-term viability. Detailed geological assessments have confirmed that three of these kimberlites possess a probable mineral reserve of 35.4 million tonnes. This extensive reserve boasts a grading of 1.57 carats per tonne, projecting a total diamond content of an astounding 55.5 million carats. Such substantial reserves provide a solid foundation for the mine’s sustained operation and future profitability, ensuring a steady supply of diamonds for over a decade. The rigorous exploration and resource estimation processes confirm the robust economic potential and geological integrity of the Gahcho Kué project, making it a cornerstone for both Mountain Province Diamonds and the broader Canadian mining sector.

Future Outlook and Market Impact

With the successful ramp-up of production and the impending first tender sale in Antwerp, Mountain Province Diamonds is poised for a period of significant growth and market influence. The regular sales schedule, anticipated every five weeks, will provide a consistent revenue stream and establish the company as a reliable supplier in the competitive global diamond market. The ability to offer both high-volume production and exceptional individual stones, including large gem-quality and fancy colored diamonds, creates a compelling value proposition for buyers worldwide.

The partnership with De Beers Canada, a titan in the diamond industry, further strengthens Mountain Province’s position, combining local expertise with global market reach. As Gahcho Kué continues to scale towards full commercial production in early 2017, its contribution is expected to positively impact the overall diamond market by ensuring a steady supply of ethically sourced, high-quality Canadian diamonds. This development is not only a triumph for Mountain Province Diamonds but also a boost for Canada’s reputation as a leading producer of some of the world’s most sought-after gems, reinforcing confidence in the long-term health and vibrancy of the global diamond industry.

News Source: gjepc.org