DIAMOND STUDY: Positive feasibility for Gahcho Ku

NORTHWEST TERRITORIES - Mountain Province Diamonds (49%) and De Beers Canada (51%) are in possession of a positive independent feasibility study for their Gahcho Kué diamond project. The property is located 300 km northeast of Yellowknife and only 90 km east of De Beers' Snap Lake diamond mine.

The study outlines the base case for a mine with an operating life of 11 years and annual production of approximately 4.5 million carats. The initial capital cost will be between $550 million and $650 million. Cash operating costs are expected to be between $38 and $60 per tonne. A resource estimate prepared in 2009 put 30.2 million tonnes containing 50.5 million ct in the indicated category and 6.0 million tonnes containing 10.3 million ct in the inferred categories. Those numbers include the 5034, Tuzo and Hearne kimberlites.

The partners have not released the detailed financial numbers for the project except to say the "IRR exceeds the minimum 15% required under joint venture agreement to support a decision to develop Gahcho Kué."

More information is available at both www.MountainProvince.com and www.DeBeersCanada.com.