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-media 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
Mountain Province has announced the appointment of three leading international banks to arrange and underwrite a senior secured term loan facility of up to $370-million to fund the company’s share of the construction cost of the Gahcho Kué project.

Mountain Province has mandated Deutsche Bank, Natixis and Nedbank as the lead arrangers to underwrite, arrange and manage the primary syndication of the facility, subject to adhering to certain conditions. These  include, but are not limited to, the successful completion of due diligence and internal bank approvals of the lead arrangers and agreement on facility documentation, which are expected before the end of 2014.

As at the end of June 2014, the overall project was progressing according to plan and remains on schedule for first production during the second half of 2016. Mountain Province is funding its share of the capital with equity and has arranged sufficient equity to fund planned capital commitments through to the end of 2014.

Mountain Province is being advised by Rockface Capital of the UK.

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.