Canadian Mining Journal

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DIAMONDS: De Beers looking to get in on Kennady action



Drilling continues at the Kennady North diamond project next door to the Gahcho Kue mine. (Image: Kennady Diamonds)

TORONTO – Mountain Province Diamonds and its joint venture partner at the Gahcho Kue diamond mine, De Beers Canada, have signed a non-binding memorandum of understanding that covers properties owned by Kennady Diamonds with the goal of rolling them into the existing venture.

At the end of January 2018, Mountain Province made an all-share bid worth about $176 million to take over Kennady. (Kennady was spun out of Mountain  Province in 2012.) Kennady has brought its diamond properties that abut the Gahcho Kue site near Lac des Gras, N.T., to the advanced exploration stage.

Given the proximity of the Kennady North project to Gahcho Kue, rolling it into the existing joint venture would be a giant step in de-risking development of the Kelvin and Faraday kimberlites.

Kennady has thus far outlined an indicated resource of 13.62 million carats in 8.50 million tonnes of kimberlite at Kelvin and an inferred resource of 5.02 million carats in 3.27 million tonnes at Faraday. Further exploration on additional targets is planned.

The agreement between Mountain Province and De Beers depends on the former’s completion of the Kennady takeover.

More information about this deal will be available at www.MountainProvince.com.