VANCOUVER (miningweekly.com) – The seventh sale of diamonds produced from Mountain Province Diamonds’ 49%-owned Gahcho Kué mine, in Canada’s Northwest Territories, saw the average price of rough stones strengthen, despite a cautious market.

The Toronto-headquartered company, which has a 49% stake in the Gahcho Kué mine, in Canada’s Northwest Territories, reported that pricing in the ninth sale was stable to firm, with prices across the full assortment profile generally averaging about 2% higher than the eighth sale. 

The increase in average price realisation is mainly a result of an improved quality distribution in the larger stone sizes and increased demand for lower-value assortments, the company said.

Mountain Province recorded an average value per carat sold of $66, up 10% over the previous October sale, from the sale of 288 000 ct. The sale raked in $19-million in revenues from the sale of more diamonds at 353 000 ct, compared with the $21.3-million the previous sale collected.

"Despite caution reported in the rough markets after the return from Indian and Jewish holidays, customer participation metrics at our ninth sale were strong, with over 150 companies attending the tender, average bids per lot reaching our highest level to date at 11.9, and return customers purchasing 88% by value,” stated VP for diamond marketing Reid Mackie.

Interim president and CEO David Whittle also pointed out that Gahcho Kué mine operations is continuing its solid track record, not only in terms of plant performance but putting in its highest monthly recovered grade to date.

“This result is a testament to the quality of the mine operating team which, along with the consistent performance of our marketing group, is a driving factor behind the strong operating margins we are generating."

The company owns the Gacho Kué mine in partnership with 51% owner and operator De Beers.

Mountain Province's TSX-listed stock fell by as much as 3.87% on Wednesday, to an intraday low of C$3.48 a share.