Mountain Province Diamonds Gives Update On Gahcho Kue Project

(IDEX Online) – Mountain Province Diamonds Inc. provided an update on progress at the Gahcho Kué diamond project, a joint venture between Mountain Province Diamonds (49 percent) and De Beers Canada (51 percent).

As at the end of May 2014 the overall project was progressing according to plan and first production remains on schedule for H2 2016.

Processing of the Gahcho Kué Land Use Permit and Class A Water License remains on schedule. The public hearing on the Gahcho Kué water license was held on May 6 and 7. On May 23, the Mackenzie Valley Land and Water Board released draft copies of the Gahcho Kué Water Licence and Land Use Permit for final review and comment before the end of June. These permits are expected to be approved during H2 of 2014.

Following the appointment last month of Rockface Capital as financial advisor to the company, a review of a number of debt terms sheets has been completed. Indications of interest to participate in the provision of debt finance to Mountain Province continue to be received.

The company expects to complete the review of all debt proposals by the end of June following which detailed negotiations will commence with the preferred lenders. Based on current progress, Mountain Province expects to be able to announce further details, including debt terms, by the end of July and expects to be able to conclude definitive loan agreements by the end of 2014.

Drilling of the final third hole at Tuzo Deep is currently underway. Details of the drill results will be released on completion of the program, which is expected by the end of June. Progress has been slower than planned due to difficult ground conditions.

The Gahcho Kué Project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 35.4 million tonnes grading 1.57 carats per tonne for total diamond content of 55.5 million carats.