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Mountain Province Diamonds Inc T.MPVD

Alternate Symbol(s):  MPVDF

Mountain Province Diamonds Inc. is a Canada-based diamond company. The Company’s primary asset is its 49% interest in the Gahcho Kue Mine, a Joint Venture with De Beers Canada. The Gahcho Kue Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company’s Kennady North Project includes approximately 113,000 hectares of claims and leases surrounding the Gahcho Kue Mine that include an indicated mineral resource for the Kelvin kimberlite and inferred mineral resources for the Faraday kimberlites. Kelvin is estimated to contain 13.62 million carats (Mct) at 8.50 million tons (Mt) at a grade of 1.60 carats/ton and a value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/ton and a value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct to 1.87Mt at a grade of 1.04 carats/ton and a value of US$75/carat.


TSX:MPVD - Post by User

Comment by tinytoton Mar 29, 2019 12:05am
84 Views
Post# 29552153

RE:RE:hey, Mac, screen change question

RE:RE:hey, Mac, screen change question
Macloud1 wrote: 645,634 fine carats we won't see. But on the other hand we will have a slight increase in the larger diamonds with the extra ore processed. 


Well, I look at it this way:

Say those 650,000 carats were sold at $7/carat.

That is $4,500,000 loss in revenue.

Say the average sales price of any additional larger diamonds recovered will be $85/carat. 

To make up that loss we need to produce $4,500,000/$85 = 53,000 carats of larger stones.

With a grade of 2.1 carats/ton, that ,means that we will have to mine and process only 53,000/2.2 =  24,000 more tons of ore.

Last year about 3,000,000 tons of ore was mined and processed, the added 24,000 more is only an 0.8% increase, which is far lower than the 10% predicted.  

I know that these numbers are just rough estimates, and that there will be discarded fines in the added ore, but I can find no gross error above. 

Do you agree with the above? If so, the 10% increase in production will surpass greatly the lost revenue from the fines. I am having a hard time accepting this, seems too good to be true, although I hope I am right.

I will be happily corrected.
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