Mountain Province announces over 80% completion of Gahcho Kué diamond mine development

Mountain Province Diamonds Inc. announced that the Gahcho Kué diamond mine development project is more than 80 percent complete and is on plan and budget for first production in H2 2016. Patrick Evans, Mountain Province President and CEO, commented: “We continue to make excellent progress at Gahcho Kué. Key areas of focus over the next six months are commissioning of the primary crusher and diamond plant, as well as preparation for operational readiness.”

Mountain Province was advised early last week of the planned cessation of operations at the De Beers Snap Lake mine and the opportunities this would afford selected Snap Lake employees to be hired at Gahcho Kué. Forty-one Snap Lake employees have been transferred to Gahcho Kué and a further 60 will be transferred next year as the mine prepares for production.

Mr. Kim Truter, Chairman of the Gahcho Kué JV Management Committee and De Beers Canada CEO, commented: “The regrettable decision relating to Snap Lake will have no impact on plans for the Gahcho Kué mine. On the contrary, Gahcho Kué will benefit from the availability of trained and experienced employees who are being transferred to Gahcho Kué to support operational readiness.”

Mr. Evans added: “Procurement under the capital program is 99 percent complete and preparations for the 2016 ice road deliveries are well advanced. The project continues to meet our lending group’s tests-to-completion and the final 2015 draw-down against the project finance facility has occurred. During 2015 a total of US$158M has been drawn against the US$370M facility. Mountain Province is fully funded to commercial production and also has a US$75M cost overrun facility in place.”