Mountain Province Output Falters in First Quarter

RAPAPORT… Production from Mountain Province’s Gahcho Kué mine fell in the first quarter amid the mining of lower-grade ore.

Rough-diamond output at the Canadian mine fell 15% year on year to 1.2 million carats for the three months ending March 31 as the company operated in a newly discovered kimberlite resource that carried lower-grade ore than the area it had originally planned to mine, Mountain Province said last week. The company’s 49% portion of production was 580,726 carats. De Beers owns the remaining 51% stake in the site.

The average ore grade slid 25% to 1.68 carats per tonne, compared with 2.23 carats per tonne during the same period of 2021, the company noted.

Sales of rough diamonds dropped 16% to 506,567 carats for the quarter. Total proceeds surged 56% to $66.7 million as the average price jumped 86% to $132 per carat. The increase in the average price reflected strong demand for rough diamonds and a shortage in retail stock, the miner explained. 

“The discovery of incremental, previously unmodeled kimberlite ore is a positive for the operation and reflects the significant opportunities for additional diamonds to be discovered at the Gahcho Kué mine,” said Mountain Province CEO Mark Wall.

Image: The ice road at the Gahcho Kué mine. (Mountain Province)