Canadian Federal Government Approves Gahcho Kué Diamond Mine Development
YELLOWKNIFE, TORONTO and NEW YORK, Oct. 22, 2013 /CNW/ - De Beers Canada and
Mountain Province Diamonds (TSX: MPV, NYSE MKT: MDM) are pleased to announce
that the Minister of Aboriginal Affairs and Northern Development Canada, the
Hon. Bernard Valcourt, has today approved the development of the Gahcho Kué
diamond mine as recommended by the Mackenzie Valley Environmental Impact
Tony Guthrie, Chief Executive Officer for De Beers Canada, commented: "The
Minister's approval confirms that the plans for the development and operation
of the Gahcho Kué diamond mine meet the highest standards. The new diamond
mine will benefit the economy and residents of the Northwest Territories and
enhance Canada's position as a premier diamond producer."
Federal government approval allows the Mackenzie Valley Land and Water Board
to commence processing of the applications for the Land Use Permit and Water
License required to construct and operate the Gahcho Kué mine.
Patrick Evans, Mountain Province President and CEO, added: "Gahcho Kué has
gone through the most comprehensive environmental review of any mining project
in the Northwest Territories. Through this process, consultation with
stakeholders has been extensive. The shareholders of Mountain Province now
look forward to an efficient and timely completion of the remaining regulatory
process, which is necessary to ensure the optimal development of the Gahcho
Kué diamond mine".
Gahcho Kué will employ close to 700 people during the two years of
construction and close to 400 people during its operations phase. It is
forecast to produce an average of 4.5 million carats annually over the eleven
year mine life. Gahcho Kué is a joint venture between De Beers (51%) and
Mountain Province Diamonds (49%) and is located 280 km northeast of
Yellowknife, Northwest Territories.
Given the expected timing for the issuance of a land use permit to enable
pioneer work to commence, which requires approximately 42 days for processing,
as well as the impact of the winter ice road on logistics, the joint venture
is currently reassessing the Gahcho Kué development plan to determine the
optimal development schedule. In addition, the joint venture is also updating
the 2010 Gahcho Kué feasibility study and expects to announce the results of
an Optimization Study early in the New Year. Further details will be announced
as they become available.
About De Beers Group of Companies
De Beers is a member of the Anglo American plc group. Established in 1888, De
Beers is the world's leading diamond company with unrivalled expertise in the
exploration, mining and marketing of diamonds.Together withits joint
venture partners,De Beers employs more than 23,000 people (directly and as
contractors) across the diamond pipeline, andis the world's largest diamond
producer by value, with mining operations in Botswana, Canada, Namibia and
South Africa. As part of the company's operating philosophy, the people of De
Beers are committed to Living up to Diamonds by making a lasting contribution
to the communities in which they live and work, and transforming natural
resources into shared national wealth. For further information about De Beers
About Mountain Province Diamonds
Mountain Province Diamonds discovered the first kimberlite at Kennady Lake in
1995 and in 1997 entered into a joint venture with Monopros, a subsidiary of
De Beers. Mountain Province is a 49% participant with De Beers Canada in the
Gahcho Kué JV located in Canada'sNorthwest Territories. Gahcho Kué is the
world's largest and richest new diamond mine development. A December 2010
feasibility study filed by Mountain Province (available on SEDAR) indicates
that the Gahcho Kué project has an IRR of 33.9%. Further information is
available at www.mountainprovince.com.
This news release may contain forward-looking statements, within the meaning
of the "safe-harbour" provision of the Private Securities Litigation Reform
Act of 1995, regarding Mountain Province's business. Actual results could
differ materially from those described in this news release as a result of
numerous factors, some of which are outside the control of the Company.
SOURCE Mountain Province Diamonds Inc.
Cathie Bolstad Director, External & Corporate Affairs De Beers Canada Tel:
Patrick Evans President and CEO Mountain Province Diamonds Tel: (416)
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CO: Mountain Province Diamonds Inc.
ST: New York
NI: MNG FIELD
-0- Oct/22/2013 18:05 GMT
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