TSX and NASDAQ: MPVD
TORONTO and NEW YORK, May 23,
2018 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces
the completion of the winter drilling program at their Kennady North Project. The 100%-owned Kennady North Project was
recently acquired through a business combination with Kennady Diamonds Inc. (see news release dated April
13, 2018).
Three drill rigs have been active on the program, with one drill dedicated to delineation drilling on Faraday 2, a second
drill dedicated to geotechnical drilling on the Faraday kimberlites, and the third drill testing exploration targets within the
Kelvin-Faraday Corridor. A total of 38 drill holes were completed for a program total of 6,826 metres.
Delineation drilling on the northwest extension of the Faraday 2 kimberlite has been completed. The northwest extension,
discovered in 2017, extends the Faraday 2 kimberlite by over 150 metres, with geologic units in the inferred resource
continuing into the northwest extension (see Kennady Diamonds news releases dated September 11,
2017 and March 7, 2018). The completed drilling is expected to advance the Faraday 2
pipe shell model to an inferred level of confidence. Results since the last update (see Kennady Diamonds news release dated
April 5, 2018) are summarized in Table 1 below.
Table 1: Faraday 2 2018 Delineation Drill Program
Drill Hole
|
DH Purpose
|
Azimuth
|
Inclination
|
Kimberlite Intercepts (m)
|
End of
Hole
(m)
|
From
|
To
|
Intercept*
|
KDI-18-012a
|
Delineation/Exploration
|
000
|
-90
|
254.33
|
270.52
|
15.18**
|
334
|
279.68
|
292.94
|
11.37**
|
297.36
|
298.34
|
0.45**
|
304.00
|
305.45
|
0.51**
|
KDI-18-012b
|
Delineation/Exploration
|
305
|
-80
|
-
|
-
|
-
|
317
|
KDI-18-013
|
Delineation/Geotech
|
038
|
-66
|
258.69
|
288.97
|
28.05**
|
319
|
KDI-18-019
|
Delineation/Exploration
|
039
|
-67
|
306.83
|
315.45
|
8.62
|
337
|
322.75
|
323.80
|
1.05
|
330.63
|
331.00
|
0.37
|
KDI-18-022
|
Delineation
|
040
|
-68
|
250.50
|
295.25
|
44.75
|
307
|
* Intercepts are not true widths. **Includes minor country rock
intercepts.
|
See the appendix to the news release posted on the Company's website for a plan-view drill hole map regarding the Faraday 2
delineation program.
Drill holes KDI-18-012 a&b were designed to test for continued extension of the Faraday 2 body along strike to the
northwest. Vertical hole 18-012a is interpreted to have intersected the marginal zone of the kimberlite as evidenced by the
regular intervals of country rock gneiss interbedded within the kimberlite. Hole 18-012b was
drilled to the northwest along the projected strike of the body and did not intersect kimberlite, indicating that the pipe had
changed orientation. Angled drill hole 18-019 was subsequently drilled in a northeasterly direction and it clipped the
bottom edge of the body, indicating that the pipe was now likely trending to the north. Drill hole 18-013 deviated slightly
and intersected the kimberlite off centre and across 28 metres compared to the 50 metre intervals achieved in adjacent
delineation holes. In comparison, drill hole 18-022 hit close to the target zone for a 44.75 metre kimberlite intercept.
Irrespective of minor deviations in some of the drill holes, the entry and exit pierce points will provide valuable
information to advance the three-dimensional modeling of the pipe.
The final hole of the geotechnical program was completed on Faraday 1-3. The hole was designed to test the geotechnical
characteristics of the country rock for the purposes of open pit mine design and was not targeted to intersect kimberlite.
Results are summarised in Table 2 below.
Table 2: Faraday 1-3 Geotechnical Drilling
Drill Hole
|
DH Purpose
|
Azimuth
|
Inclination
|
Kimberlite Intercepts (m)
|
End of
Hole
(m)
|
From
|
To
|
Intercept*
|
KDI-18-017
|
Geotechnical
|
320
|
-45
|
-
|
-
|
-
|
189
|
Dr. Tom McCandless, former director and qualified person for Kennady Diamonds and now technical
advisor to Mountain Province, commented, "The goal of the Faraday geotechnical program was to
complete drilling that will advance the Faraday kimberlites from a scoping-level to a pre-feasibility level of confidence in
terms of geotechnical analysis. In this respect the program was very successful, with all of the planned drill holes and
associated geotechnical surveys, ground water sampling and other required testwork completed."
Since early April, a third drill rig has been dedicated to testing geophysically-defined exploration targets located in close
proximity to the Faraday and Kelvin kimberlites. A total of eight targets were tested with a total of seventeen drill
holes. Kimberlite has been intersected in all holes, consisting of kimberlite sheet complexes with the longest intercept
being 6.85 metres of coherent kimberlite. In every case the kimberlite sheets are intimately associated with greater zones
of altered and brecciated country rock.
Table 3 below summarizes the results for exploration targets drill tested to date.
Table 3: Results for exploration targets tested under Faraday Lake
Drill Hole
|
Target
|
Azimuth
|
Inclination
|
Kimberlite Intercepts (m)
|
End of
Hole
(m)
|
From
|
To
|
Intercept*
|
Targets Near the Faraday Kimberlites
|
KDI-18-014a
|
Target #18-01
|
000
|
-90
|
34.53
|
35.55
|
1.02
|
165
|
46.20
|
46.31
|
0.11
|
KDI-18-014b
|
Target #18-01
|
017
|
-45
|
89.33
|
89.54
|
0.21
|
199
|
91.15
|
93.64
|
2.49
|
95.18
|
95.47
|
0.29
|
96.89
|
98.09
|
1.20
|
KDI-18-015
|
Target #18-01
|
283
|
-45
|
78.87
|
79.18
|
0.31
|
199
|
91.66
|
97.30
|
5.41**
|
KDI-18-016a
|
Target #18-02
|
000
|
-90
|
64.48
|
66.49
|
2.01
|
119
|
75.18
|
76.91
|
0.93**
|
KDI-18-016b
|
Target #18-02
|
220
|
-65
|
61.03
|
61.31
|
0.28
|
131
|
62.00
|
65.37
|
2.29**
|
KDI-18-016c
|
Target #18-02
|
220
|
-45
|
66.89
|
68.98
|
1.68**
|
122
|
79.51
|
82.65
|
3.14
|
KDI-18-018a
|
Target #18-03
|
000
|
-90
|
128.00
|
133.00
|
5.00
|
179
|
KDI-18-018b
|
Target #18-03
|
341
|
-62
|
192.73
|
193.16
|
0.43
|
269
|
198.02
|
198.79
|
0.77
|
203.61
|
204.13
|
0.52
|
225.27
|
225.77
|
0.50
|
238.64
|
239.66
|
1.02
|
KDI-18-020b
|
Target #18-04
|
145
|
-45
|
56.70
|
56.83
|
0.13
|
116
|
59.53
|
60.08
|
0.55
|
61.92
|
62.00
|
0.08
|
68.97
|
70.04
|
1.07
|
KDI-18-020c
|
Target #18-04
|
145
|
-71
|
60.22
|
63.28
|
3.06
|
119
|
KDI-18-021a
|
Target #18-05
|
000
|
-90
|
69.60
|
75.58
|
4.37**
|
126
|
KDI-18-021b
|
Target #18-05
|
125
|
-45
|
61.26
|
64.94
|
3.68
|
152
|
KDI-18-023
|
Target #18-06
|
220
|
-76
|
68.00
|
69.00
|
1.00
|
119
|
KDI-18-024
|
Target #18-07
|
145
|
-55
|
59.25
|
60.50
|
1.25
|
121
|
66.00
|
66.50
|
0.50
|
83.50
|
84.00
|
0.50
|
Target Near the Kelvin Kimberlite
|
KDI-18-025
|
Target #18-08
|
135
|
-55
|
37.75
|
45.00
|
6.85**
|
119
|
KDI-18-026
|
Target #18-08
|
135
|
-55
|
38.00
|
42.50
|
4.50
|
114
|
*Intercepts are not true widths. **Includes minor country rock
intercepts.
|
Dr. McCandless further commented, "We conducted a systematic approach to drill testing exploration targets located in close
proximity to the known Faraday and Kelvin kimberlites. While only kimberlite sheets were intersected, in each case the
subtle geophysical anomalies we targeted were explained by intervals of highly altered and fractured country rock immediately
adjacent to the kimberlite sheets. Similarly fractured and altered country rock is associated with both the Kelvin and the
Faraday pipes and we are confident that kimberlite pipes may be associated with some of the geophysical anomalies that remain to
be tested."
****
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,
consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12
year mine plan.
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 Dr. Tom
McCandless, P.Geo., technical advisor to Mountain Province and a Qualified Person as
defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking statements" and "forward-looking information" under applicable
Canadian and United States securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds Inc. Forward-looking statements and forward-looking information
include, but are not limited to, statements with respect to estimated production and mine life of the project of Mountain Province; the realization of mineral reserve estimates; the timing and amount of estimated future
production; costs of production; the future price of diamonds; the estimation of mineral reserves and resources; the ability to
manage debt; capital expenditures; the ability to obtain permits for operations; liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact relating to Mountain Province,
certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently
characterized by words such as "anticipates," "may," "can," "plans," "believes," "estimates," "expects," "projects," "targets,"
"intends," "likely," "will," "should," "to be", "potential" and other similar words, or statements that certain events or
conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to differ materially from those projected in the
forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of
Mountain Province and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements
include variations in ore grade or recovery rates, changes in market conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and timeliness of permitting and governmental approvals; supply
of, and demand for, diamonds; fluctuating commodity prices and currency exchange rates, the possibility of project cost overruns
or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or
processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection
with these statements. Mountain Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and the risk they entail. Mountain
Province believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can
be given that these expectations will prove to be correct and such forward-looking statements included in this news release
should not be unduly relied upon. These statements speak only as of the date of this news release.
Although Mountain Province has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Mountain Province undertakes no obligation to update
forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements
concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered as the property is developed.
Further, Mountain Province may make changes to its business plans that could affect its
results. The principal assets of Mountain Province are administered pursuant to a joint
venture under which Mountain Province is not the operator. Mountain Province is exposed to actions taken or omissions made by the operator within its prerogative
and/or determinations made by the joint venture under its terms. Such actions or omissions may impact the future
performance of Mountain Province. Under its current note and revolving credit facilities Mountain
Province is subject to certain limitations on its ability to pay dividends on common stock. The declaration of
dividends is at the discretion of Mountain Province's Board of Directors, subject to the
limitations under the Company's debt facilities, and will depend on Mountain Province's
financial results, cash requirements, future prospects, and other factors deemed relevant by the Board.
View original content:http://www.prnewswire.com/news-releases/mountain-province-diamonds-completes-the-kennady-north-winter-exploration-program-300653246.html
SOURCE Mountain Province Diamonds Inc.
View original content: http://www.newswire.ca/en/releases/archive/May2018/23/c5250.html