TORONTO and NEW YORK, January 18,
2018 /PRNewswire/ --
Shares Issued and Outstanding:
160,253,501
TSX and NASDAQ: MPVD
Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and
NASDAQ: MPVD) today announces an update on the exploration program
currently ongoing in the Southwest Corridor area of the Gahcho Kué
mine site. The Southwest Corridor area lies between the 5034
and Hearne pipes, and in the course of mining activity has been
recognized as containing diamondiferous kimberlite that is not
included in the project resource statements. The current
exploration program has included geophysical surveys, as well as
exploration drilling which remains ongoing.
A geophysical program was carried out in the fall of 2017. This
program comprised a ground gravity survey centred on the Southwest
Corridor area as well as other nearby areas, including between the
Tuzo and Tesla pipes. Approximately 70% of the ground gravity
survey was completed in the fall, and has identified a potential
target in the corridor between Tesla and Tuzo. The remaining 30% of
the survey will be completed in February, including infill stations
to complete the assessment of this new target. As well, the
geophysical program included an airborne magnetics and
electromagnetics survey spanning the full lease area around the
mine, which has detected a possible extension of the Tesla pipe to
the southwest.
A 17 hole exploration drill program in the Southwest Corridor,
based on a 50 metre by 50 metre spacing plan, was commenced in
November 2017. Drilling remains
ongoing and is expected to continue until mid-March. Six
holes have been completed to date, and a summary of results is
provided as follows:
End
of
Intercept True Hole
Drill Hole Azimuth Inclination Intercept[1],[2] (m) Thickness[3] (m) (m)
From To Length
MPV-17-435C 300 -54 76.65 120.08 43.43 25.4 126
MPV-17-436C 311 -54 107.00 130.23 23.23 13.8 164
MPV-17-437C 329 -54 151.80 199.70 47.90 26.4 230
MPV-17-438C 285 -50 151.60 157.00 5.40 3.1 191
MPV-17-439C 305 -60 157.00 164.50 7.50 3.5 224
MPV-17-440C 327 -50 211.27 229.40 18.13 11.6 284
[1]Intercept is composed of kimberlite, kimberlite granite breccia, granite
kimberlite breccia, and internal granitic dilution.
[2] Not true thickness.
[3] Estimated true thickness, to be confirmed.
Based on core logging, the kimberlitic zone is comprised of
kimberlite and breccias with variable granite content. See the
appendices to the news release posted on the Company's website for
drill plots and additional information regarding intercept
composition.
Said David Whittle, the Company's
Interim President and Chief Executive Officer, "It is encouraging
to have intercepted kimberlite in all six of the exploration holes
drilled to date. This is particularly notable given much of the
Southwest Corridor is already scheduled under the mine plan to be
mined as waste rock. We're also pleased with the
identification of a potential new target in the Tesla-Tuzo
corridor."
As noted, the ground gravity survey and the exploration drilling
are expected to be completed in mid-March. A subsequent drill
program is anticipated to drill test the ground gravity target in
the corridor between Tesla and Tuzo, and also to drill test the
corridor between 5034 and Tuzo. The North Pipe kimberlite,
which lies within that corridor and comprises part of the 5034
inferred resources, is open in all directions for
expansion. Additionally, analysis of the results of the
current drill program is expected to be completed in mid 2018, with
the goal of estimating a resource for the Southwest Corridor area
for eventual incorporation into the Gahcho Kué mine plan.
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. Gahcho
Kué is the world's largest new diamond mine, consisting of a
cluster of four diamondiferous kimberlites, three of which are
being developed and mined under the initial 12 year mine plan.
Qualified Person
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Carl G. Verley, P.Geo., a
Qualified Person as defined by National Instrument 43-101
Standards of Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking
statements" and "forward-looking information" under applicable
Canadian and United States
securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds
Inc. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and mine life of the project of
Mountain Province; the realization
of mineral reserve estimates; the estimation of mineral
reserves and resources; capital expenditures; and the ability to
obtain permits for operations. Except for statements
of historical fact relating to Mountain
Province, certain information contained herein constitutes
forward-looking statements. Forward-looking
statements are frequently characterized by words such as
"anticipates," "may," "can," "plans," "believes," "estimates,"
"expects," "projects," "targets," "intends," "likely," "will,"
"should," "to be", "potential" and other similar words, or
statements that certain events or conditions "may", "should" or
"will" occur. Forward-looking statements are based on
the opinions and estimates of management at the date the statements
are made, and are based on a number of assumptions and
subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking
statements. Many of these assumptions are based on
factors and events that are not within the control of
Mountain Province and there is no
assurance they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, changes in project parameters, mine sequencing;
production rates; cash flow; risks relating to the availability and
timeliness of permitting and governmental approvals; supply of, and
demand for, diamonds; fluctuating commodity prices and
currency exchange rates, the possibility of project cost overruns
or unanticipated costs and expenses, labour disputes and other
risks of the mining industry, failure of plant, equipment or
processes to operate as anticipated.
These factors are discussed in greater detail in
Mountain Province's most recent
Annual Information Form and in the most recent MD&A filed on
SEDAR, which also provide additional general assumptions in
connection with these statements. Mountain Province cautions that the
foregoing list of important factors is not exhaustive.
Investors and others who base themselves on forward-looking
statements should carefully consider the above factors as well as
the uncertainties they represent and the risk they
entail. Mountain Province believes that the
expectations reflected in those forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this news release should not be unduly relied
upon. These statements speak only as of the date of
this news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Mountain Province undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required
by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and
resource estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered as the property is
developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain
Province are administered pursuant to a joint venture
under which Mountain Province is
not the operator. Mountain
Province is exposed to actions taken or omissions made by
the operator within its prerogative and/or determinations made by
the joint venture under its terms. Such actions or omissions
may impact the future performance of Mountain Province. Under its current note and
revolving credit facilities Mountain
Province is subject to certain limitations on its ability to
pay dividends on common stock. The declaration of dividends is at
the discretion of Mountain
Province's Board of Directors, subject to the limitations
under the Company's debt facilities, and will depend on
Mountain Province's financial
results, cash requirements, future prospects, and other factors
deemed relevant by the Board.
Mountain Province Diamonds Inc., David
Whittle, Interim President and CEO, 161 Bay Street, Suite
1410, Toronto, Ontario, M5J 2S1,
Phone: +1(416)361-3562, E-mail: info@mountainprovince.com