DIAMOND DEVELOPMENT: Gahcho Ku partners advance $31.3 million

NORTHWEST TERRITORIES – Joint venture partners Mountain Province Diamonds (49%) of Toronto and De Beers Canada (51%), also based in Toronto, are spending $31.3 million over the next year at their Gahcho Kué diamond project near Kennady Lake in preparation for development.

About two-thirds of the budget will be spent this year, and the remainder during the first quarter of next year. Work to be undertaken includes preparation for the construction and operating permit applications; front end engineering and design (FEED); preparation and procurement for the 2013 winter road; detailed engineering; purchase of long lead time equipment; and an update of the feasibility study.

Mountain Province (MountainProvince.com) has indicated that production could begin in 2014 or 2015 at a rate of 4.5 million ct/y over 11 years from an open pit mine.