25 January 2022
TORONTO and NEW YORK, Jan. 25, 2022 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province" or the "Company") (TSX: MPVD) (OTCQX: MPVD) is pleased to announce the results of its latest diamond sale in Antwerp, Belgium, which closed on January 21, 2022. Additionally, the Company wishes to provide an operational update, and 2022 guidance.
During the Company's first sale of 2022, 181,851 carats were sold for total proceeds of $31.5 million (US$25.0 million) resulting in an average value of $173 per carat (US$137 per carat). Adjusting for mix of goods sold, this result represents a run-of-mine price of $124 per carat (US$98 per carat).
Following the declaration of an outbreak of COVID-19 at Gahcho Kué by the Office of the Chief Public Health Officer in the Northwest Territories on December 27, 2021, additional cases of COVID-19 have been detected, primarily during shift rotation. Gahcho Kué has implemented heightened preventative measures on site, with production continuing with some impacts due to quarantine requirements. The Company continues to manage the COVID-19 situation at site, and to engage with all stakeholders.
Mark Wall, the Company's President and Chief Executive Officer, commented:
"With the strengthening in the rough diamond market that we saw throughout 2021, we expected the results of the first sale of the year to be favourable. These sales results put us on a solid footing as we head into a pivotal year.
The Company's 2022 guidance demonstrates that despite the risks, impacts and costs associated with the ongoing COVID-19 pandemic, the mine continues to generate positive free cash flow, enhanced further by the strong rough diamond market."
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.