14 April 2022
TSX and OTCQX: MPVD
TORONTO and NEW YORK, April 14, 2022 /CNW/ - 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.
(all figures reported on a 100% basis unless otherwise stated)
Average grade of 1.68 carats per tonne, a 25% decrease relative to Q1 2021 (2.23 carats per tonne)
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Q1 2022 Production Figures |
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2022 Q1 |
2021 Q11 |
YoY Variance |
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Total tonnes mined (ore and waste) |
8,167,801 |
5,604,562 |
46% |
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Ore tonnes mined |
1,018,722 |
515,002 |
98% |
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Ore tonnes treated |
707,553 |
625,582 |
13% |
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Carats recovered |
1,185,156 |
1,392,128 |
-15% |
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Carats recovered (49% share) |
580,726 |
682,143 |
-15% |
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Recovered grade (carats per tonne) |
1.68 |
2.23 |
-25% |
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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 |
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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.
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."