DIAMOND STUDY: Feasibility underway for Gahcho Ku project

NORTHWEST TERRITORIES — JDS Energy and Mining has been awarded the contract to produce the feasibility study for the long-delayed Gahco Kué diamond project, a joint venture of De Beers Canada (51%) and Mountain Province Diamonds (49%). The $10-million report should be completed a year from now.

The Gahcho Kué kimberlites are located at Kennady Lake, approximately 300 km northeast of Yellowknife and 90 km east of De Beers' Snap Lake diamond mine. The project consists of a cluster of kimberlites, three of which have an indicated resource of approximately 30.2 million tonnes grading at 1.67 carats/tonne (approximately 50.5 million ct) and an inferred resource of approximately 6.0 million tonnes grading at 1.73 ct/tonne (approximately 10.3 million ct).

At full production the mine could produce 4.0 million ct/year. See www.MountainProvince.com for complete details.