Mtn Province rounds up 1,174 carats from Hearne pipe
2002-11-05 18:37 PT - News Release
Mr. Jan Vandersande reports
MOUNTAIN PROVINCE DIAMONDS REPORTS ON THE DIAMONDS RECOVERE ....
Large diamonds recovered
Mountain Province Diamonds has been informed by its joint venture partner, De Beers Canada Exploration Inc., a wholly owned subsidiary of De Beers Consolidated Mines Limited, that the diamond recovery from the sample concentrates of the kimberlite recovered from the 2002 bulk sample of the Hearne diamond pipe has been completed in Johannesburg, South Africa. A total of 1,174 carats were recovered with the three largest diamonds weighing 8.7, 6.4 and 4.9 carats. In the 1999 and 2001 bulk samples the largest diamond in each case weighed 3.4 carats. The number of diamonds greater than half a carat recovered this year is proportionately (to the total number of carats recovered) greater than those size diamonds recovered in the 1999 and 2001 bulk samples (specifically, 31 per cent more than recovered in 2001 and 15 per cent more than in 1999). The number of diamonds available (especially larger diamonds) for valuation has as a result increased and will lead to more confidence in the value per carat modelling. The diamonds will be sent to the Diamonds Trading Company (DTC) in London, England, for valuation. The Hearne kimberlite pipe is one of the largest and has one of the highest values of the five diamondiferous bodies in the cluster at Kennedy Lake, located on the joint venture's AK claims in Northwest Territories of Canada.
As mentioned in a news release in Stockwatch on April 24, 2002, De Beers completed the winter 2002 bulk sample program of the Hearne and 5034 pipes on April 20, 2002. The purpose of the bulk sampling program is to increase the available revenue information for these two pipes. Since revenue is determined by grade and diamond value and since the two kimberlite pipes contain internal zones that vary in grade, it is important to combine diamond grade estimates along with diamond revenue estimates. The large number of diamonds obtained in the 2002 program will thus increase the confidence in, and accuracy of, revenue modelling via an enhanced understanding of grade, diamond size and frequency distributions, and diamond values.
The Hearne kimberlite consists of two bodies. The main body (north lobe) is an elongated pipe over 250 metres in length in the north-south direction and the second body (south lobe), just south of the main body, is an elongated pipe up 100 metres in length in the east-west direction. The two lobes have been subdivided on the basis of internal geology into several phases (see Stockwatch news on Jan. 31, 2000). Out of a resource of approximately 72 million tonnes, approximately 5.6 million tonnes have a modelled grade of 2.05 carats per tonne and 1.6 million tonnes has a modelled grade of 0.6 carat per tonne, giving a weighted average grade of 1.71 carats per tonne. The lower grade zone is approximately 50 to 80 metres thick. The top of this zone is located near surface at the southern end of the north lobe and dips steeply to the north, with the top of this zone being below 300 metres at the northern end of the north lobe. The grade of a drill hole into the north lobe will thus depend on the position and depth of the hole and, hence, on how much of this lower grade zone is intercepted.
The sample grade per hole in the 1999 bulk sample varied from 1.05 to 3.01 carats per tonne, with the lower grade hole being located near the southern end and the higher grade hole near the northern end of the north lobe. The average sample grade for the three holes drilled into the northern part of the north lobe in the 2001 bulk sample program was 225 carats per tonne.
A total of five large-diameter holes were drilled into the north lobe of the Hearne pipe in 2002. A cluster of three closely spaced holes (2002-99, 2002-103 and 2002-105, approximately seven to eight metres apart) was drilled just north of the centre of the lobe: one hole (2002-101) was drilled approximately 40 metres to the north of this cluster of holes and one hole (2002-91) was drilled approximately 40 metres north of the southern boundary of the lobe. The same drill (24-inch diameter) and the same drill method (a diamond-friendly flood reverse system) that were used last year were used again this year. In the 1999 bulk sample, a reverse circulation drill with a diameter of 12.25 inches was used. In the 2002 program De Beers recovered a total of 1,174 carats from 665.5 tonnes of kimberlite. The results for each of the 2002 drill holes are shown in the table.
Drill Tonnes Grade
hole (in situ) Carats ct/tonne
2002-101 122.2 283.4 2.32
2002-99 149.6 267.2 1.79
2002-103 100.7 228.8 2.27
2002-105 104.7 222.1 2.12
2002-91 188.3 172.5 0.92
The grades of the five holes are very consistent with the results of the 1999 and 2001 bulk samples and with the known locations of the higher and lower grade kimberlite phases.
No. Five
Bulk No. No. >0.5 largest
sample < 2 <1 <1 diamonds
year Carats ct ct* ct (ct)
2002 1174 13 5O 157 8.7, 6.4,
4.9, 3.4,
3.2
2001 751 6 27 74 3.4, 3.2,
2.5, 2.2,
2.2
1999 846 9 40 90 3.4, 3.1,
2.9, 2.7,
2.6
*includes those diamonds
over two carats
The number of diamonds recovered in three different size ranges (between half a carat and one carat, greater than one carat, and greater than two carats) are shown in the table for all three bulk samples, In total, for the 2002 bulk sample, there are 50 diamonds weighing more than one carat, which include 13 greater than two carats and 157 diamonds between half a carat and one carat. The total number of diamonds greater than half a carat recovered this year (207) is proportionately (to the total number of carats recovered each year) greater than those size diamonds recovered in the 1999 and 2001 bulk samples. Specifically, there are 31 per cent more diamonds greater than half a carat as recovered in the 2001 bulk sample and 15 per cent more than recovered in the 1999 bulk sample. Both in the 1999 and 2001 bulk samples the largest diamond recovered weighed 3.4 carats. In this year's bulk sample there are three diamonds weighing more than 3.4 carats with the largest weighing 8.7 carats. This shows that, like in the 5034 pipe, larger diamonds are present in the Hearne pipe.
The number of diamonds available, especially the greater number of larger diamonds, for valuation has new increased and will lead to more confidence in the value-per-carat modelling. The diamonds will be sent to tile Diamond Trading Company (DTC) in London, England, for valuation. Those values will be used to model the values per carat in Johannesburg. After that, revenue-per-tonne modelling, taking into account both the updated grade information and the diamond values, will be performed. The modelled-values-per-carat and modelled-revenues-per-tonne values for the 5034 and Hearne pipes are expected in early 2003.
The company is very pleased with the results. The increase in the number of larger diamonds recovered as compared with 1999 and 2001 will hopefully positively impact the size-frequency curves and thus the modelled values.
Separately, two warrantholders have exercised their full allocation of 755,066 share purchase warrants at 80 cents for a total proceeds of $604,052.80. One of the warrantholders is Bottin International Investments Ltd., the largest shareholder of the company.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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