TSX and OTCQX: MPVD
TORONTO and NEW
YORK, April 14, 2022 /PRNewswire/ -
Mountain Province Diamonds Inc. ("Mountain Province", the
"Company") (TSX: MPVD) (OTCQX: MPVD)
today announces production and sales results for the first quarter
ended March 31, 2022 ("the Quarter"
or "Q1 2022") from the Gahcho Kué Diamond Mine
("GK Mine"). All figures are expressed in Canadian
dollars unless otherwise noted.
Q1 Production Takeaways
(all figures reported on a 100% basis unless otherwise
stated)
- 1,018,722 ore tonnes mined, a 98% increase relative to last
year's comparable quarter (Q1 2021: 515,002 ore tonnes
mined)1
- 707,553 ore tonnes treated, a 13% increase relative last year's
comparable quarter (Q1 2021: 625,582 tonnes treated; Q4 2021,
813,308 tonnes treated)
- 1,185,156 carats recovered, 15% lower than last year's
comparable quarter (Q1 2021: 1,392,128 carats)
- Average grade of 1.68 carats per tonne, a 25% decrease relative
to Q1 2021 (2.23 carats per tonne)
Q1 2022 Production
Figures
|
|
|
|
|
|
2022
Q1
|
2021
Q11
|
YoY
Variance
|
Total tonnes mined (ore
and waste)
|
8,167,801
|
5,604,562
|
46%
|
Ore tonnes
mined
|
1,018,722
|
515,002
|
98%
|
Ore tonnes
treated
|
707,553
|
625,582
|
13%
|
Carats
recovered
|
1,185,156
|
1,392,128
|
-15%
|
Carats recovered (49%
share)
|
580,726
|
682,143
|
-15%
|
Recovered grade (carats
per tonne)
|
1.68
|
2.23
|
-25%
|
Note 1: Q1 2021
Production impacted by 22-day unplanned operational stand-down in
February due to measures taken to limit spread of Covid-19 at
Gahcho Kué
|
As previously disclosed along with the Company's year-end
filings, during the first quarter of 2022 additional unmodeled
resource was encountered, carrying a lower grade than planned
mining areas. The incremental, previously unmodeled Kimberlite will
be incorporated into the stockpile strategy throughout 2022, with
the net effect of increasing Life-of-Mine ore tonnes and cash-flow
while also decreasing processed grade. It is seen as a positive by
Mountain Province that more
diamond bearing ore is being mined than was previously included in
the mine plan. Additionally, recovered grade in the quarter was
impacted by higher-than-planned mining dilution. Initiatives are
underway to correct this going forward.
Q1 Sales Results
As previously disclosed, during the quarter, 506,567 carats were
sold for total proceeds of $84.7
million (US$66.7 million)
resulting in an average value of $167
per carat (US$132 per carat). This is
a 52% increase relative to the average value per carat in Q4 2021
of $110 per carat (US$86 per carat). The increase in average values
in Q1 reflected the increase in demand across the rough diamond
market, and the fact that upstream stock levels are now believed to
reflect operating inventories only.
Mark
Wall, the Company's President and Chief Executive Officer,
commented:
"The discovery of incremental, previously unmodeled Kimberlite
ore is a positive for the operation and reflects the significant
opportunities for additional diamonds to be discovered at the
Gahcho Kué mine. Additionally, I'm pleased to say that the
operational effects of the late-2021/early 2022 Omicron outbreak at
site are now largely behind us and the unplanned failure at the
primary crusher is repaired, with additional crusher optimization
opportunities identified. After a slower than expected Q1 we are
working with our joint venture partner to make the necessary
improvements."
****
About Mountain Province Diamonds
Inc.
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest
Territories. The Gahcho Kué Joint Venture property consists
of several kimberlites that are actively being mined, developed,
and explored for future development. The Company also controls
107,373 hectares of highly prospective mineral claims and leases
surrounding the Gahcho Kué Mine that include an Indicated mineral
resource for the Kelvin kimberlite and Inferred mineral resources
for the Faraday kimberlites. Kelvin is estimated to contain 13.62
million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60
carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain
5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of
US$140/ct. Faraday 1-3 is estimated
to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and
value of US$75/carat. All resource
estimations are based on a 1mm diamond size bottom cut-off.
For further information on Mountain Province Diamonds and to
receive news releases by email, visit the Company's website at
www.mountainprovince.com.
Qualified Person
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Tom E. McCandless, Ph.D., P.Geo.,
and Matthew MacPhail, P.Eng, MBA,
both employees of Mountain Province Diamonds Inc. and Qualified
Persons as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects.
Caution Regarding Forward Looking
Information
This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian and United
States securities laws concerning the business, operations
and financial performance and condition of Mountain Province
Diamonds Inc. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to operational hazards, including possible disruption due
to pandemic such as COVID-19, its impact on travel, self-isolation
protocols and business and operations, estimated production and
mine life of the project of Mountain
Province; the realization of mineral reserve estimates; the
timing and amount of estimated future production; costs of
production; the future price of diamonds; the estimation of mineral
reserves and resources; the ability to manage debt; capital
expenditures; the ability to obtain permits for operations;
liquidity; tax rates; and currency exchange rate
fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "anticipates," "may," "can," "plans," "believes,"
"estimates," "expects," "projects," "targets," "intends," "likely,"
"will," "should," "to be", "potential" and other similar words, or
statements that certain events or conditions "may", "should" or
"will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Mountain Province and
there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
the development of operation hazards which could arise in relation
to COVID-19, including, but not limited to protocols which may be
adopted to reduce the spread of COVID-19 and any impact of such
protocols on Mountain Province's
business and operations, variations in ore grade or recovery rates,
changes in market conditions, changes in project parameters, mine
sequencing; production rates; cash flow; risks relating to the
availability and timeliness of permitting and governmental
approvals; supply of, and demand for, diamonds; fluctuating
commodity prices and currency exchange rates, the possibility of
project cost overruns or unanticipated costs and expenses, labour
disputes and other risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves
on forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Mountain Province
believes that the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this
news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain
Province undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered as the property is
developed. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain
Province are administered pursuant to a joint venture under
which Mountain Province is not the
operator. Mountain Province is
exposed to actions taken or omissions made by the operator within
its prerogative and/or determinations made by the joint venture
under its terms. Such actions or omissions may impact the future
performance of Mountain Province.
Under its current note and revolving credit facilities Mountain Province is subject to certain
limitations on its ability to pay dividends on common stock. The
declaration of dividends is at the discretion of Mountain Province's Board of Directors,
subject to the limitations under the Company's debt facilities, and
will depend on Mountain Province's
financial results, cash requirements, future prospects, and other
factors deemed relevant by the Board.
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SOURCE Mountain Province Diamonds Inc.