Here's Canaccord's release related to yesterday's news. The total value is somewhat less than you indicated, but may change when the diamond valuations are completed.
* Mountain Province Mining (MPV : VSE : $4.20 : Issued 44M f.d.)
Monopros (De Beers) reported yesterday that the processing of 62.6
tonnes of mini bulk sample by reverse circulation drilling this past
winter from the Hearne pipe yielded 205 carats for a grade of 3.28
carats per tonne, and that 60 tonnes from the smaller Tesla pipe
yielded 25.9 carats for a grade of 0.43 c/t. With this report, the
four pipes on the Mountain Province 90%/Camphor Ventures 10% AK
property in the southern NWT may be moving closer to a decision by
Monopros to undertake a major underground bulk sampling program next
winter. Monopros had re-estimated the 5034 resource, grade, and
valuation using a 1.65 mm recovery screen, which will likely be done
for the other three pipes as well, but the resources (using Mountain
Province's postulations for the three new pipes) might be summarized
as follows:
Pipe Projected Resource Recovery Cut-off Grade c/t Avg. Carat
Value (US$)
to 300 m
5034 15M tonnes 1.65 mm 1.5 $55
Hearne 10M tonnes 1.00 mm 3.28 na
Tuzo 10M tonnes 1.00 mm 2.24 na
Tesla 5M tonnes 1.00 mm 0.43 na
The implied resource is close to 80M carats, which, if one assumed
averaged 5034's $55.00/carat, would have a $4.4B in-situ value. Keep
in mind that the pre-Monopros grade for 5034 was in the 2 c/t range at
a 1 mm recovery cut-off, and the average carat value was only about
26.00. It will be interesting to see what Monopros can do in
modelling these figures. The actual valuations of the stones from the
new pipes are expected to be done by the end of July.
Considering that Mountain Province's press release is subject to
approval by Monopros, we take heart in the statement that: "Both
Monopros and the Company believe that with these very good results for
the three pipes reported so far, the project should now advance to the
bulk sampling stage. A formal decision will be made subsequent to
complete analysis and interpretation of all results."
Monopros can earn a 60% interest in both the AK and CJ properties by
taking them to production: Mountain Province would be carried with a
net 36% interest. We feel that a decision to bulk sample the pipes
will take Mountain Province from the exploration to the development
category, thereby upgrading its qualification for inclusion in
additional investment accounts. The stock remains a BUY. |
