DIAMOND EXPLORATION: Gahcho Ku valuation jumps to $135/ct

NORTHWEST TERRITORIES — An independent valuation of samples from the Gahcho Kué joint venture (49% Mountain Province Diamonds and 51% De Beers Canada) revealed that the average price per carat is US$135, an increase of 63% from the estimate made in 2006. The valuation was conducted by WWW International Diamond Consultants in September 2008.

Material from three kimberlites were valued. The diamonds from the 5034 kimberlite were worth US$122/ct, from the Tuzo kimberlite US$252/ct and from the Hearne kimberlite US$62/ct. These are the three main kimberlites at the project, and together they contain an indicated resource of approximately 14.4 million tonnes grading 164 cpht (approximately 23.6 million carats) and an inferred resource of 17.0 million tonnes grading 135 cpht (approximately 22.9 million carats).

In its report to Mountain Province, WWW stated, "The Tuzo sample and the 5034 East sample both contained one high-value large stone. For Tuzo there was a 25.14-ct stone valued at $17,000/ct and 5034 East had a 9.90-carat stone valued at $15,000/ct. It is encouraging that such high value stones were recovered in samples of this size."

Production is to begin in 2012 and reach 3.0 million ct/year. Additional details are available at www.MountainProvince.com.