TSX and OTCQX: MPVD
TORONTO and NEW YORK, Jan. 25, 2022 /PRNewswire/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX: MPVD) (OTCQX: MPVD) is pleased to announce the results of its latest diamond sale in Antwerp, Belgium, which closed on January 21, 2022. Additionally, the Company wishes to provide an operational update, and 2022 guidance.
Results of First Sale of the Year
During the Company's first sale of 2022, 181,851 carats were sold for total proceeds of $31.5 million (US$25.0 million) resulting in an average value of $173 per carat (US$137 per carat). Adjusting for mix of goods sold, this result represents a run-of-mine price of $124 per carat (US$98 per carat).
Operational Update
Following the declaration of an outbreak of COVID-19 at Gahcho Ku by the Office of the Chief Public Health Officer in the Northwest Territories on December 27, 2021, additional cases of COVID-19 have been detected, primarily during shift rotation. Gahcho Ku has implemented heightened preventative measures on site, with production continuing with some impacts due to quarantine requirements. The Company continues to manage the COVID-19 situation at site, and to engage with all stakeholders.
2022 Guidance (all figures quoted on a 100% basis)
- 35 – 40 million total tonnes mined (ore and waste)
- 3.75 – 4.30 million ore tonnes mined
- 3.35 – 3.60 million ore tonnes treated
- 6.3 – 6.7 million carats recovered
- Production costs of $121 - $127 per tonne treated
- Production costs of $64 – $68 per carat recovered
- Sustaining Capital Expenditure of $11 million
Mark Wall, the Company's President and Chief Executive Officer, commented:
"With the strengthening in the rough diamond market that we saw throughout 2021, we expected the results of the first sale of the year to be favourable. These sales results put us on a solid footing as we head into a pivotal year.
The Company's 2022 guidance demonstrates that despite the risks, impacts and costs associated with the ongoing COVID-19 pandemic, the mine continues to generate positive free cash flow, enhanced further by the strong rough diamond market."
About the Company
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Ku diamond mine located in Canada'sNorthwest Territories. The Gahcho Ku Joint Venture property consists of several kimberlites that are actively being mined, developed, and explored for future development. The Company also controls 107,373 hectares of highly prospective mineral claims and leases surrounding the Gahcho Ku 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) in 8.50 million tonnes (Mt) at a grade of 1.60 carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain 5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of US$140/ct. Faraday 1-3 is estimated to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and value of US$75/carat. All resource estimations are based on a 1mm diamond size bottom cut-off.
For further information on Mountain Province Diamonds and to receive news releases by email, visit the Company's website at www.mountainprovince.com.
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 Tom E. McCandless, Ph.D., P.Geo., and Matthew MacPhail, P.Eng, MBA, both employees of Mountain Province Diamonds and Qualified Persons as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.