This hard to believe coming from De-beers on MPV
as just the opposite from spring DE-Bums are crooks
Mountain Province Diamonds Inc., (the Company) is pleased to announce that it has been notified by its joint venture partner, De Beers Canada Exploration Inc. (De Beers Canada), a wholly-owned subsidiary of De Beers Consolidated Mines Limited (De Beers) that De Beers has started work on a detailed cost estimate of a pre-feasibility study of the joint venture's Kennady Lake diamond deposits. The cost estimate will be presented to the De Beers Board in November 2003 and if approval is given, a pre-feasibility study will start in early 2004. This decision to start the cost estimate was based on the improving geo-political and economic conditions, which support confidence in longer-term diamond price projections. The project is located in the Northwest Territories of Canada on the joint venture's AK leased claims. The deposits are located in Kennady Lake but the project has been re-named the Gahcho Kue project, using the Aboriginal designation for the area.
The Company reported the results of the updated desktop study on April 15, 2003. At that time De Beers decided to postpone the pre-feasibility decision because the internal rate of return (IRR) was below the agreed upon hurdle rate needed to advance the project to the next phase, combined with the then geo-political and economic uncertainties. At that time De Beers stated it would regularly review the project economics.
In a letter to the Company Mr. Richard Molyneux, President & CEO of De Beers Canada Mining Inc., states:
“Over the past few weeks, we have carried out a further review of the project, taking into consideration a number of important factors. These factors include: 1. The ending of the war in Iraq, and the relative improvement in confidence, which has emerged subsequent to this.
2. The ending of the SARS epidemic, particularly in the Far East and the amelioration of concern in terms of its negative impact on the diamond industry.
3. The lessening of our concerns in recent months about the US and global economies.
4. De Beers has further improved its financial position with continued good sales over the first half of 2003.
5. The normal uncertainties associated with long-term projections of diamond prices have been exacerbated in recent months by the Iraq war, SARS and lack of confidence in the USA and global economy. The improvements in these areas have given De Beers increased confidence in the longer-term position and supported projections that diamond prices will continue to rise.
In light of these factors and following reassessment of the project financial models, the De Beers Canada project team has therefore made the recommendation to the board of De Beers, at the board meeting held in Luxembourg on July 23, that a full pre-feasibility study should be undertaken in 2004 and first half of 2005. The Board of De Beers was sufficiently encouraged by the information presented to them, to have requested that a detailed estimate be prepared of the cost of the pre-feasibility study. Work on this detailed estimate has already been initiated, and this will be presented to the Board in November 2003.
If approval is given in November, we will proceed with this work early in 2004. This will cover a wide range of activities including geo-technical drilling, engineering design and environmental studies.”
The Company is very pleased with this decision by De Beers to proceed with the feasibility cost estimate at this time and looks forward to the pre-feasibility study starting in early 2004.
Mountain Province Diamonds Inc. is a diamond exploration and development company. The AK claims, located in the Northwest Territories of Canada are now held 44.1% by Mountain Province Diamonds Inc., 4.9% by Camphor Ventures (TSX-V: CFV), and 51% by De Beers Canada Exploration Inc. As reported in its news release on March 7th, 1997, Mountain Province Diamonds Inc. and its partner entered into a joint agreement with De Beers Canada Exploration Inc. formerly known as Monopros Ltd. (a wholly owned subsidiary of De Beers Consolidated Mines Limited) under which De Beers Canada Exploration Inc. has the right to earn up to a 60% interest in the AK property by taking the project to commercial production.
“Jan W. Vandersande”
Jan W. Vandersande, Ph.D. President & CEO |
