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 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, during which the operation will produce about 53.4-million carats at an average yearly rate of 4.45-million carats using standard drill and blast, and truck and 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.

Net Present Value/Internal Rate of Return
None stated.

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 to January 2017 have been estimated at C$82-million.

Duration
Production aims to start in 2016.

Latest Developments
The Gahcho Kué project, the world’s largest diamond mine currently under construction, was 62% complete as at the end of May, project developer Mountain Province Diamonds has reported.

Construction activities are focused on continued dewatering to expose the kimberlite pipes, placing concrete foundations and erecting steel superstructures for all major facilities. A key milestone is to ensure that the process plant building is enclosed by October, before the harsh Canadian winter sets in.

The project currently employs 500 employees and contractors on site and this number is expected to peak at about 650 during the third quarter.

During normal operation, there will be about 400 employees at Gahcho Kué.

De Beers Canada has maintained a strong focus on a robust safety record, with 15 consecutive months without a lost-time injury.

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

On Budget and on Time?
Construction is reported to be progressing according to plan and within budget.

“We’re on track for first production [in the second half of] 2016 and are currently making arrangements to be in a position to receive and sell our 49% share of diamond production. These arrangements are expected to be in place by the end of 2015,” Mountain Province president and CEO Patrick Evans has said.

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.