Mountain Province Reports Diamond Resource Spike from Faraday 2

Mining and Exploration
15/04/2019 10:18

Mountain Province Diamonds has provided an update to the Mineral Resource Estimate for the Faraday 2 kimberlite, reporting a 74% spike to 5.45 million carats of diamonds, outstrippiing the 2017 estimate of 3.13 million carats. The update now cites an inferred resource of 2.07 million tonnes of kimberlite, a 49% increase from the1.39 million tonnes cited in 2017. The overall grade has also increased by 17% to 2.63 carats per tonne, and the average value per carat has jumped 25% to US$140 from the 2017 estimate of US$112 per carat. The Faraday 2 kimberlite is one of three kimberlites located within the Kennady North Project, NWT, Canada.

Mountain province explains that it derived increase in the attributed average value per carat from applying a base case value distribution model to models of recoverable (+1 mm) diamond size frequency distribution for each geological domain. The increase from the reported 2017 average diamond value reflects revised size frequency distribution models and a revised value distribution model for the Faraday 2 kimberlite. The Inferred Mineral Resource at Faraday 2 has been updated to include the northwest extension, which was discovered in 2017 and extended the kimberlite by 150 meters.

"The Faraday 2 project is one of three known kimberlites within our wholly owned exploration properties adjacent to the Gahcho Kué Mine," said President and Chief Executive Officer for Mountain Province Stuart Brown. "As anticipated from our microdiamond results reported earlier this year, the inclusion of the northwest extension at Faraday 2 has greatly increased the value of this resource and at an average diamond value of US$140 per carat offers significant potential. We are very pleased with the results of this exploration program and view this as a positive step towards potentially extending our operations beyond the existing mine plan at Gahcho Kué." Mountain Province Diamonds acquired the new resource in a friendly takeover of Kennady Diamonds early last year. Mountain Province’s stock rose nearly 10% Thursday following the announcement.