Mountain Province Diamonds Inc. has announced an updated life of mine (LOM) plan and revised mineral resource and reserve estimate for its Gahcho Kué mine in Canada’s Northwest Territories.
The mine, a joint venture between De Beers Canada Inc. (51%) and Mountain Province (49%), is expected to yield a significantly higher diamond output due to engineering advancements that allow deeper ore extraction.
This update extends the mine’s operational lifespan and provides revised projections on production and revenue.
Increased Production and Extended Mine Life
The Gahcho Kué mine is now projected to produce 36.3 million carats annually, an increase from the previous estimate of 30.8 million carats. The revised production estimate is based on new geotechnical work that steepened the mine’s pit walls, allowing for deeper extraction of ore from the open pit. Mountain Province’s CEO, Mark Wall, highlighted the importance of this update, stating that the mine’s projected cash flow demonstrates its continued value, despite current market conditions. The company estimates that its 49% share of the mine’s revenue will amount to $626 million over the remaining life of the project.
Ore processing is now expected to continue until early 2031, a slight extension from the previous estimate of 2030. This extension is due to the expanded pit design and the inclusion of an additional 5.5 million carats of diamonds in the mine plan. Additionally, the updated plan includes a reduction in the bottom cut-off size for diamond recovery, from 1.1 mm to 1.0 mm starting in 2027, aligning with a forecasted global decline in diamond production due to other mine closures.
Mineral Resource and Reserve Enhancements
The updated technical report includes significant changes to the mine’s mineral resource and reserve estimates. The new data includes the interpretation of external kimberlite contacts based on mining data, including blast hole logs and face mapping. These updates have increased the ore body volumes, which will allow the mine to capture more kimberlite in the upcoming years.
The report also factors in 23.7 million carats of inferred diamonds, which could potentially increase the resource estimate further. Although these inferred resources are not fully verified, the existence of nearby known deposits makes their presence likely.
