Shares Issued and Outstanding: 160,245,166
TSX and NASDAQ: MPVD
TORONTO and NEW YORK, Oct. 24, 2017 /CNW/ - Mountain
Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces production results for the
third quarter ended September 30, 2017 from the Gahcho Kué Diamond Mine ("GK Mine"), as well as the
results of its recently completed eighth diamond sale.
Q3 Production Highlights
- Mining of overburden, waste rock and ore in the 5034 open pit for the third quarter was approximately 8.3 million tonnes,
with approximately 695,000 tonnes of ore (100 percent basis) stockpiled at period end.
- In the third quarter of 2017, the GK Mine treated approximately 823,000 tonnes of ore through the process plant (14%
greater than current forecast) and recovered approximately 1,825,000 carats on a 100% basis (19% greater than current forecast)
for an average grade of approximately 2.22 carats per tonne. The Company's attributable share of third quarter diamond
production was approximately 894,000 carats.
Q3 Production Statistics
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2017 Q3
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2017 YTD
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|
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Total tonnes mined (100%) (overburden, waste and ore)
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8,312,000
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24,372,000
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Ore tonnes mined (100%)
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1,123,000
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2,674,000
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Ore tonnes processed (100%)
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823,000
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2,082,000
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Carats recovered (100%)
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1,825,000
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4,306,000
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Carats recovered (49% share)
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894,000
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2,110,000
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Recovered grade (carats per tonne)
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2.22
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2.07
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Said David Whittle, the Company's Interim President and Chief Executive Officer, "The recovered
grade in the third quarter of 2.22 carats per tonne remains substantially above the 1.62 initially projected for 2017.
Given the continuation of our strong plant performance and favourable grade experience at the GK Mine, we are well on track to
meet and exceed our current full-year 2017 production guidance of 2,720,000 tonnes processed and 5,500,000 carats recovered on a
100% basis."
Eighth Diamond Sale Results
The results of the eighth sale, with preceding sale results for comparative context, are summarized as follows:
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2017-Q1
Sales 1-3
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2017-Q2
Sales 4-5
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2017-Jul
Sale 6
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2017-Sep
Sale 7
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2017-Oct
Sale 8
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Tender Sale Proceeds (USD million)
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37.7
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33.8
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20.9
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27.1
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21.3
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Carats Sold ('000s)
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522
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370
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290
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463
|
353
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Value per Carat (USD)1
|
72
|
91
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72
|
59
|
60
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Normalized Value per Carat (USD)
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72
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792
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872
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722
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632
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1
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Diamonds sold at individual sale events will not directly reflect
run-of-mine production from specific processing periods. The timing of the sale of some goods may be accelerated or
deferred for tactical marketing purposes. Realized average value per carat is also impacted by the binary nature of the
fancies and specials bidding process within each production split, conducted approximately every five weeks with the
Company's joint venture partner, De Beers Canada Inc. The winning party of each fancies and specials bid then markets
100% of those diamonds.
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2
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Normalized to adjust for goods accelerated or deferred, and to include
fancies and specials acquired through bid by De Beers Canada Inc.
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To more meaningfully relate prices realized at sale events to production results, the Company also provides the following
table:
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Production Period3
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Inception
to End of
Year 2016
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Q1
2017
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Apr
2017
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May
2017
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June
2017
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July
2017
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Aug
2017
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Sep
2017
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YTD
Total
2017
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|
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Sale in Which Goods Were Primarily Sold
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1 & 2
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3 to 5
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6
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7
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7&8
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8
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n/a2
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n/a2
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|
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Tonnes Processed (100%) ('000s)
|
515
|
492
|
201
|
276
|
289
|
314
|
269
|
241
|
2,082
|
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Recovered Grade (carats per tonne)
|
1.64
|
1.76
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2.27
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2.09
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1.99
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2.13
|
2.32
|
2.22
|
2.07
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Carats Recovered (100%) ('000s)
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847
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867
|
457
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579
|
578
|
669
|
622
|
535
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4,306
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Carats Recovered (49% share) ('000s)
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422
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425
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224
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284
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283
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328
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305
|
262
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2,110
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Attributed Value per Tonne in CAD1
|
143
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188
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225
|
172
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157
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160
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n/a2
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n/a2
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1
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Attributed Value per Tonne has been determined based on realized sale
results, with any accelerated or deferred goods adjusted to their period of production, reflecting only the Company's 49%
share of all diamonds including fancies and specials.
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2
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Not applicable as goods from this production period have not yet been
sold.
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3
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Total figures may differ slightly from the sum of monthly figures due to
the effects of rounding.
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Tonnes processed in the month of September reflects the impact of a planned five day shut-down in that month for annual
maintenance. This shut-down was incorporated in the determination of production guidance for 2017, and was successfully
executed as planned.
Price experience in the eighth sale is consistent with that reported by the industry generally and reflects the seasonally
slow period in the rough diamond sector around Jewish and Hindu New Years' holiday periods.
Also, similar to the seventh sale, realized value per carat in the eighth sale reflects the inclusion of significantly fewer
fancies and specials than previous sales, as well as a finer size distribution experienced in the summer's production.
Said Reid Mackie, the Company's Vice President Diamond Marketing, "The October tender sale saw our
highest levels of competition to date with an average of 11.8 bids per lot and 145 companies attending. This strong
participation reflects continued deepening of Mountain Province's customer base and interest in
our diamond offering. The result is that Mountain Province's sell through rate is one of
the highest among major producers, despite recent market corrections and the traditionally slow lead up to the Diwali holiday
period."
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in
Canada's Northwest Territories. Gahcho Kué is the world's largest new diamond mine and
projected to produce an average of 4.5 million carats a year over a 12 year mine life.
The Gahcho Kué Diamond Mine consists of a cluster of four diamondiferous kimberlites, three of which are being developed and
mined under the current mine plan.
Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo.,
who serves as the qualified person under National Instrument 43-101.
Forward-Looking Statements
Cautionary Statement: This news release contains forward-looking statements under applicable Canadian and US
securities regulations and legislation in which Mountain Province discusses its potential
future performance. Forward-looking statements are all statements other than statements of historical facts, such as
projections or expectations relating to ore grades and processing rates, production and sales volumes, cash costs, operating cash
flows, capital expenditures, debt management initiatives, exploration efforts and results, development and production activities
and costs, liquidity, tax rates, the impact of diamond price changes, reserve estimates, and future dividend payments. The
words "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets," "intends," "likely,"
"will," "should," "to be", "potential" and any similar expressions are intended to identify those assertions as forward-looking
statements. Under its current project finance facility Mountain Province is not permitted
to pay dividends on common stock unless and until obligations under the facility have been satisfied. The declaration of
dividends is at the discretion of Mountain Province's Board of Directors, subject to
restrictions under the Company's project finance facility, and will depend on Mountain
Province's financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.
Mountain Province cautions readers that forward-looking statements are not guarantees of
future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking
statements. Important factors that can cause Mountain Province's actual results to differ
materially from those anticipated in the forward-looking statements include supply of and demand for, and prices of, diamonds,
mine commissioning, mining sequencing, production rates, cash flow, industry risks, regulatory changes, political risks, labor
relations, weather- and climate-related risks, environmental risks and other risk factors.
Investors are cautioned that many of the assumptions upon which Mountain Province's
forward-looking statements are based are likely to change after the forward-looking statements are made, including for example
diamond prices, which Mountain Province cannot control, and production volumes and costs, some
aspects of which Mountain Province may not be able to control. Further, Mountain Province may make changes to its business plans that could affect its results. Mountain
Province disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
SOURCE Mountain Province Diamonds Inc.
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