Name and Location
Gahcho Kué diamond project, Northwest Territories (NWT), Canada.

Client
Gahcho Kué Joint Venture (JV) – a collaboration between De Beers Canada (51%) and Mountain Province Diamonds (49%).

Project Description
Gahcho Kué, which is Chipewyan for ‘a place where big rabbits are found’, is located at Kennady Lake, 280 km north-east of Yellowknife and 80 km east of De Beers’ existing Snap Lake mine, in NWT. The diamond prospect is one of the largest new diamond projects under development globally.

The project consists of the Hearne North and South pipes; the 5034 West pipe, the Central and North-East pipes; the 5034 South pipe; the 5034 North pipe; Wallace; and the Dunn Sheet, Tuzo and Tesla diamondiferous kimberlite pipes, sheets and dykes.
A revised and updated feasibility study on the Gahcho Kué project has confirmed the remote project’s robust metrics.

The Gahcho Kué deposit has current National Instrument 43-101-compliant total probable reserves of 55.5-million carats, contained in 35.4-million tonnes grading 1.57 ct/t.

The mine life has been estimated at 12 years, over which the operation will produce about 53.4-million carats at an average yearly rate of 4.45-million carats using standard drill/blast and truck/shovel equipment and pit designs, which are similar to those of other openpit diamond mines operating in the area.
The average yearly output for the first three years of full production from 2017 to 2019 will be about 5.6-million carats.

Ore will be fed to a three-million-tonne-a-year processing plant, with three stages of crushing, dense-medium separation and X-ray/grease diamond recovery circuits.

Supporting infrastructure includes a 14.1 MW packaged diesel power plant, a 1 350 m gravel airstrip, a five-bay truck shop, an emulsion plant, a 40-million-litre fuel storage facility and a 432-bed accommodation/office complex.

Value
According to the revised and updated feasibility study, the project will cost C$859-million to construct and the operation will require working capital of C$80-million.
Costs to ramp up the operation through to January 2017 have been estimated at C$82-million.

Duration
The start of production is targeted for 2016.

Latest Developments
Recent media reports that first output from De Beers' Gahcho Kué diamond mine, in northern Canada, could be delayed to early 2017 because of shipping delays, have been dispelled by minority interest holder Mountain Province Diamonds.

Mountain Province reported in March that as at the end of February, the overall project was 17% complete and first production remained on schedule for the third quarter of 2016.

De Beers, which holds a 51% controlling interest in the project, has confirmed that there has been no change in the project schedule and that “both partners are happy with the progress to date”.

News agency Reuters reported earlier that De Beers CEO Phillipe Mellier had said in an interview that first output would be delayed as a result of regulatory restrictions limiting shipments to Gahcho Kué this winter, which delayed construction.

Mountain Province reported in January that regulatory restrictions imposed on the JV had limited the material that could be trucked to site this winter. In particular, shipments of cement and steel were delayed.

It said that the JV was exploring opportunities to mitigate the impact on the project schedule, but warned that, should appropriate mitigation measures not be found, mechanical completion of the process plant and cold commissioning would occur in the second quarter of 2016 and first production in the following quarter.

The JV gained access to the ice road from February and, to date, had taken delivery of about 670 truckloads of equipment and supplies. About 100 more truckloads are expected before the end of March.

Meanwhile, the main airstrip is currently under construction and prefabricated units of the main camp are being delivered to Gahcho Kué.

The main camp and airstrip are expected to be ready for use by midyear.

Further, eight 500 m³ fuel tanks have been installed and fuel deliveries are currently under way. The installation of two 18 000 m³ fuel tanks are also under way, with enough fuel being delivered to site to support the construction operation for the next 12 months.

Key Contracts and Suppliers
JDS Energy & Mining (feasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
De Beers Canada external and corporate affairs tel + 1 416 645 1710.
Mountain Province Diamonds, tel +1 416 361 3562, fax +1 416 603 8565 or email info@mountainprovince.com.