Gahcho Kue Found Two Big Diamonds in April

Toronto: Mountain Province Diamonds Inc. reports an 84.65 carat diamond and a 53.90 carat stone were recovered from the Gahcho Kue diamond mine during April.

The mining firm and its joint venture partner, De Beers Canada, bid for the production of fancy colored and special (+10.8 carat) diamonds on almost a monthly basis. The bid for April 2017 production of fancies and specials was won by Mountain Province and included the two exceptional diamonds mentioned above. The fancies and specials are now owned by Mountain Province and will be included in the company’s upcoming sales through its broker in Antwerp.

Mountain Province President and CEO Patrick Evans commented: “The 84.65 carat diamond is the largest gem quality diamond recovered to date and provides further confirmation that Gahcho Kué hosts a population of large, high quality gem diamonds. The 53.90 carat diamond is the highest quality exceptional stone recovered to date and is expected to achieve a record price at tender.”

The company also announced the receipt of a unanimous waiver from all seven participants in its loan facility of the requirement to fund the cash call reserve account until August 31. Under the terms of the loan facility, the company was subject to maintaining a cash call reserve account balance of approximately $27.9 million as at March 31 and had previously received a waiver from the lenders until May 31.

During the extension period to August 31, the company expects to provide the lenders with an updated Life of Mine plan for Gahcho Kué from the operator, De Beers Canada, along with an updated financial model, further diamond pricing analysis and a fluorescence evaluation to be prepared by an external consultant.