Mountain Province Diamonds, Inc. Reports Increased Diamond Valuations
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ONTARIO, CALIFORNIA--(CCNMatthews - Nov. 17, 2004) - Mountain Province
Diamonds Inc., (the Company) (TSX:MPI)(OTCBB:MPVI) is pleased to
announce that it has been informed by its joint-venture partner DeBeers
Canada Exploration Inc., a wholly-owned subsidiary of DeBeers
Consolidated Mines Limited (De Beers), that De Beers has updated the
modeled diamond values for the Hearne, 5034 and Tuzo diamond pipes.
Values based on the August 2004 DTC price book have increased by an
average of approximately 7 percent from the March 2004 modeled values.
The Hearne, 5034 and the Tuzo kimberlite bodies (the Gahcho Kue
kimberlites) are located in Kennady Lake in the joint venture's AK
mining leases situated in the Northwest Territories of Canada.
The diamonds recovered from the 1999, 2001 and 2002 bulk samples of the
Hearne and 5034 pipes and the 1999 bulk sample of the Tuzo pipe (all to
a 1.5 mm lower cutoff), were last valued at the Diamond Trading Company
(DTC) using the March 2004 diamond prices. The modeled values per carat,
based on those valuations and on production recovery factors as
determined by De Beers, were reported on June 16, 2004. Since March
2004, diamond prices have risen due to strong demand and the DTC
increased their selling prices in August 2004 by an average of 5 percent
according to industry sources. The modeled values for the three pipes
were adjusted recently using the August 2004 DTC diamond prices.
The table shows the weighted average modeled values per carat for the
three pipes in March 2004 and August 2004.
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March 2004 August 2004
Modeled Value Modeled Value
Name of Per Carat Per Carat
Pipe (US $ per Carat) (US $ per Carat)
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5034 74.20 79.20
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Hearne 61.00 65.00
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Tuzo 49.00 53.00
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As can be seen from the table the average modeled values per carat
increased by an average of approximately 7 percent during the March 2004
to August 2004 time period.
Separately, De Beers is on schedule with the pre-feasibility/feasibility
in-depth project study. The conclusion of the study is expected in the
second quarter of 2005.
Mountain Province Diamonds Inc. is a diamond exploration and development
company. The AK mining leases, 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. Carl G. Verley, P. Geol., a director, is the qualified
person for the Company.
Jan W. Vandersande, Ph.D., President & CEO
This release may contain forward-looking statements, within the meaning
of the "safe-harbor" provision of the Private Securities Litigation
Reform Act of 1995, regarding the Company's business or financial
condition. Actual results could differ materially from those described
in this news release as a result of numerous factors, some of which are
outside of the control of the Company.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mountain Province Diamonds Inc.
Jan W. Vandersande, Ph.D.
President & CEO
(909) 466-1411
(909) 466-1409 (FAX)
Email: MtnProvInvRel@worldnet.att.net
Website: www.mountainprovince.com |
