Mountain Province expects the Gahcho Kué mine in Canada to produce 36.3 million carats per year before hitting its end of life, rather than the original 30.8 million carats.
The company updated its mineral resource plan for the project following work to steepen the site’s pit walls, adding deeper ore from the open pit to its total estimate, it said Wednesday. The miner, which owns 49% of the operation, last issued a resource assessment in 2022. De Beers owns the remaining portion. Mountain Province estimates revenue for its share will come to $626 million.
The larger mining area has also extended the deposit’s lifespan. The company expects to continue processing ore from the site until early 2031, as opposed to 2030. The total resource figure is for indicated diamonds, meaning tests have confirmed their presence. The new mine plan also includes 23.7 million carats of inferred: The existence of other known diamonds gives reason to assume they are there. The value of the diamonds ranges from $71 to $146 per carat, the company estimated.
“This is an important update to the production profile of the Gahcho Kué mine,” said Mountain Province CEO Mark Wall. “The projected…cash flow…for the balance of the open pit life of mine plan…demonstrates the value of the Gahcho Kué mine. The diamond market is considerably softer than the period when the previous 2022 technical report was completed, which creates upside opportunity to the economics should prices improve.”
Image: A rough diamond. (Mountain Province)
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