Low Grades Dent Mountain Province Output

RAPAPORT… Production at Gahcho Kué dropped 10% year on year
to 1.7 million carats in the second quarter, as mining took place in a lower-grade portion of the deposit.



“The grade variance year over year is mainly a function of
mining lower-grade-ore tonnes in [the second quarter of 2019] from Hearne and
SWC kimberlites, in comparison to higher grades from the 5034 kimberlite in
[the second quarter of 2018],” Mountain Province, which owns 49% of the project, said last week.


The plant treated 882,374 tonnes of ore during the three
months ending June 30, a 2% decrease over the same period last year. The grade
decreased 9% to 1.96 carats per tonne.


However, the average price remained largely on par with the
previous year, as enhancements to the plant led to an increase in the
number of larger, more valuable diamonds recovered. Sales fell 7% year on year to CAD 95.8 million ($71.7 million). Sales volume dropped 3% to 1.1 million carats, with the average selling price flat at CAD 89 ($67)
per carat.  


“Considering that lower-quality ore was being mined…and in
addition to a softer diamond market year over year, achieving similar average
values per carat…is very encouraging,” the company added.


Mountain Province’s share of production was 847,772 carats
from its 49% stake in Gahcho Kué. De Beers holds the remaining
51%.


The company is on track to achieve its full-year
production estimate of 3.3 million to 3.45 million carats.

Image: A yellow diamond from Gahcho Kué. (Mountain Province)