DIAMOND STUDY: Feasibility positive for Gahcho Ku project

NORTHWEST TERRITORIES - An independent feasibility study for the Gahcho Kué diamond mine is positive, according to partners Mountain Province Diamonds (49%) and De Beers Canada (51%). Both companies have offices in Toronto.

The study assumes an operation that would produce 4.45 million carats in each of 11 years of mine life. The project will initially require an investment of $549.5 million, followed by working capital of $49.4 million and sustaining capital (including closure) of $36.1 million. Operating costs would be $48.68 per tonne of kimberlite processed. Probable reserves at Gahcho Kué are estimated at 31.3 million tonnes grading 1.57 ct per tonne in the 5034, Hearne and Tuzo pipes.

Commenting, Mountain Province CEO Patrick Evans said, "The feasibility study delivers an economically viable, technically credible and environmentally sound development plan for the Gahcho Kué project. Also, the IRR exceeds the minimum 15% required under the joint venture agreement to support a decision to develop. Our focus now shifts to completion of the Gahcho Kué environmental impact assessment, which will be filed with the Mackenzie Valley Environmental Review Board prior to the end of the year."

The report will be filed on both SEDAR and EDGAR shortly. Additional information is available at www.MountainProvince.com.