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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

Post by dabard51on Oct 30, 2014 3:58pm
314 Views
Post# 23078597

Speculations on the future

Speculations on the futureMPV is in an interesting situation.  It is currently junior partner with deBeers on the GK project, PLUS the majority owners of MPV are also majority owners of neighboring KDI, which has no partner for its resource.  So let's pretend that KDI is the "exploration" arm of MPV, goes merrily on its way for the next 5 (or so) years, finding kimberlites and defining resource, while GK goes into production... and MPV saves its pennies... then, like DDC and its partner Rio Tinto, MPV offers to buy out deBeers. The deBeers folk, having made an investment in GK, and received a healthy cash flow out of the project, sell out and get their initial investment back plus a bit more.  To me, deBeers has shown a lack of interest in diamonds in Canada, for reasons which can only be speculated upon (see their broken relationship with PGD), so walking away with cash does not seem to be outside the realm of possibility for deBeers, as they have little possibility of obtaining full control (which they seem to like).

This situation then allows MPV to fully exploit GK (perhaps changing the economic hurdle rates a bit) and its surrounding pipes, and, oh by-the-bye, perhaps re-incorporate with KDI at some point...   MPV now controlling a production facility which needs feeding.

Perhaps PE and the TIGS are playing a VERY long game...

I believe I will indulge in a fine adult beverage as I contemplate this possibility...

Criticisms and comments invited.
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