Mountain Province Diamonds Announces FY 2016 results

29 March 2017

Toronto and New York, March 29, 2017 – Mountain Province Diamonds Inc. (“Mountain Province”, the “Company”) (TSX: MPVD, NASDAQ: MPVD) announced today the results for the year ended December 31, 2016.

Highlights for 2016 and to date (All quoted figures in CAD$)

  • Physical construction of the Gahcho Kué Diamond Mine (“GK Mine”) was substantially completed at June 30, 2016 and the commissioning of the diamond plant took place during July 2016. Ramp-up to commercial production commenced on August 1, 2016 and commercial production was declared on March 1, 2017 after the GK Mine achieved approximately 70% of nameplate capacity of 8,333 tonnes per day over a 30-day period.
  • Mining of overburden, waste rock and ore in the 5034 open pit for the twelve months ended December 31, 2016 was approximately 23.7 million tonnes, with approximately 66,000 tonnes of ore stockpiled at year-end.
  • From August 1 to December 31, 2016, the GK Mine on a 100 percent basis processed approximately 565,000 tonnes of ore through the process plant and recovered approximately 949,000 carats for an average grade of approximately 1.68 carats/tonne.
  • Approximately 1,361,223 carats were produced prior to declaring commercial production on March 1, 2017, of which approximately 668,449 carats, or 49%, are the Company’s share.
  • As at March 29, 2017, the Company has conducted three diamond sales through its diamond broker based in Antwerp, Belgium. The results of the Company’s first quarter diamond sales will be announced with the 2017 first quarter financial results.
  • The approximately 340,575 carats mined prior to, and remaining in inventory at, the declaration of commercial production on March 1, 2017 (pre-commercial production diamond inventory) will be sold in future months and the revenue will be treated as pre- commercial production sales and credited to Property, Plant and Equipment.
  • The Work in Progress (‘WIP’) inventory on hand prior to declaring commercial production was approximately 257,637 tonnes, estimated at a cost of approximately $8.5 million. The Company expects to sell approximately 201,000 carats based on the expected grade, being its 49% share of the WIP inventory. It is expected that, due to the timing of production and sales, the Company will only reflect revenue during June 2017.

View Details