September 4, 2002 OTCBB: MPVI
TSE: MPV
DE BEERS AND MOUNTAIN PROVINCE DIAMONDS REPORT ON THE
DIAMONDS RECOVERED FROM THE 2002 BULK SAMPLE OF THE
5034 DIAMOND PIPE
Large Diamonds Recovered
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 the diamond recovery from the sample
concentrates of the kimberlite recovered from the 2002 bulk sample of the western and central lobes of
the 5034 pipe has been completed in Johannesburg, South Africa. A total of 1,215 carats were recovered
with the three largest diamonds weighing 7.0, 6.6 and 5.9 carats. A significantly larger number of
diamonds greater than one carat were recovered this year compared to the bulk samples of 1999 and 2001
(70 compared to 42 and 34 respectively). The west and center lobes of the 5034 pipe are now seen to
have a larger proportion of diamonds greater than half a carat than the east lobe, sampled in previous
years. The number of diamonds available (especially larger diamonds) for valuation has as a result
increased and should lead to more confidence in the value per carat modeling. The diamonds will be sent
to the Diamond Trading Company (DTC) in London, England for valuation. The 5034 kimberlite pipe is
one of the largest and has one of the highest values of the five diamondiferous bodies in the cluster at
Kennady Lake, located on the joint-venture’s AK claims in the Northwest Territories of Canada.
As was mentioned in the April 24, 2002 news release, De Beers completed the winter 2002 bulk sample
program of the 5034 and Hearne 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
modeling via an enhanced understanding of grade, diamond size and frequency distributions, and
diamond values. Last year, De Beers observed that a population of high quality, top color diamonds
exists amongst the diamonds recovered from the 2001 bulk sample. Specifically, the 9.9-carat diamond
recovered from the 5034 pipe is such a dia mond and was valued at US $60,000. These high quality, top
color diamonds have a significant impact, especially the larger ones, on the revenue per tonne so the more
accurately their frequency of occurrence is known, the greater the confidence in and accuracy of the
revenue per carat modeling.
A total of six large diameter holes, consisting of two clusters of three holes, were drilled in the center and
west lobes of the 5034 pipe. The 5034 pipe consists of four lobes: east, center, west and north with the
first three being approximately the same size and having an estimated indicated resource to 300 m depth
of 2.52, 2.85 and 2.74 million tonnes of kimberlite respectively. The same drill (24 inch diameter) and
the same drill method (a “diamond friendly” flood reverse system) that was 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.
2
Drill Hole Tonnes Carats Grade
(ct/tonne)
West Lobe 2002-88 191.7 419.5 2.19
West Lobe 2002-89 143.4 243.6 1.70
West Lobe 2002-102 101.9 179.9 1.77
West Lobe 1999-03 49.9 92.6 1.86
Center Lobe 2002-81 138.5 138.2 1.00
Center Lobe 2002-86 139.7 109.9 0.79
Center Lobe 2002-90 121.0 123.8 1.02
Center Lobe 1999-06 42.2 38.5 0.91
Center Lobe 1999-05 45.7 60.02 1.32
De Beers recovered a total of 1,215 carats from 836 tonnes of kimberlite. The results for each drill hole
are shown in the table. The December 14, 1999 news release presented the modeled grades for each lobe
of the 5034 pipe; 1.85, 1.30, 1.70 and 1.70 carats per tonne for the west, center, east and north lobes
respectively.
The three holes drilled into the west lobe (holes 2002-88, 2002-89 and 2002-102) were located from 7 to
12 m to the south of the 1999 drill hole 1999-03 and were separated by approximately 6.5 m from each
other. The average grade of the three 2002 holes is 1.93 carats per tonne.
The center lobe has a lower grade than the other lobes, partly due to a lower grade zone in part of the
western half of the lobe. The three holes (2002-81, 2002-86 and 2002-90) were drilled from 5 to 11 m
from hole 1999-05 and from 9 to 16 m from hole 1999-06 and were spaced from 6 to 7 m apart. De Beers
decided to drill in this part of the pipe to get a better handle on grade estimates for this lower grade zone.
The average grade of the three 2002 holes is 0.93 carats per tonne, which is slightly higher than that found
in hole 1999-06 but not as high as in hole 1999-05.
*Includes those diamonds over 2 carats
The number of diamonds recovered in three different size ranges (between 0.5 and 1 carat, greater than 1
carat, and greater than 2 carats) is shown in the table for all three bulk samples. In total, for the 2002 bulk
sample, there are 70 diamonds weighing more than 1 carat, which include 21 greater than 2 carats, and
161 diamonds between half a carat and 1 carat. The number of diamonds recovered in all three size ranges
Bulk Sample
Year
Location in
5034
(Lobe)
Carats Number of
diamonds
greater than
2 carats
Number of
diamonds
greater than
1 carat *
Number of
diamonds
between 0.5
and 1 carat
Five largest
diamonds
(carats)
2002 west and center 1215 21 70 161
7.0, 6.6, 5.9,
4.6, 4.6
2001 east 914 10 34 104
9.9, 4.5, 2.6,
2.5, 2.4
1999
half east, west
and center 1005 10 42 113
10.0, 4.90,
4.85, 3.9, 3.8
this year is proportionately (to the total number of carats recovered) significantly greater than those
diamonds recovered in 1999 and 2001. The diamonds recovered from the 5034 pipe in 2001 were all
from the east lobe and in 1999 nearly half were from the east lobe. More specifically, when comparing
the ratios of the number of diamonds in each of the three size ranges to the total number of carats
recovered per lobe for the diamonds recovered in 2002 in the west and center lobes, with those diamonds
recovered in the east lobe in 1999 and 2001, it can clearly be seen that the west and center lobes have a
larger proportion of diamonds greater than half a carat than the east lobe. Furthermore, the number of
diamonds recovered in 2002, in each of the three size ranges, for the center and west lobes are
proportionately (to the total number of carats recovered in each lobe) very similar: 6 and 15 greater than
2 carats, 21 and 49 greater than 1 carat and 50 and 111 between half a carat and a carat, respectively.
The number of diamonds available, especially the greater number of larger diamonds, for valuation has
now increased and should lead to more confidence in the value per carat modeling. The diamonds will be
sent to the Diamond Trading Company (DTC) in London, England for valuation. After that, revenue per
tonne modeling, taking into account both the updated grade information and the diamond values, will be
performed in Johannesburg.
The Company is very pleased with the results. The increase in the number of larger diamonds recovered
compared to 1999 and 2001 will hopefully positively impact the size-frequency curves and thus the
modeled values.
The results from the bulk sample of the Hearne pipe are expected in several weeks.
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 (CDNX:CFV), and 51% by De Beers Canada Exploration Inc. As reported
in its news release on March 7
th
, 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
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.
USA Office: 3633 E. Inland Empire Blvd., Suite 465, Ontario, CA 91764 (909) 466-1411
CANADA Office: 525 Seymour Street, Suite 212, Vancouver, B.C. V6B 3H7 (604) 687-0122
Web Site: www.mountainprovince.com E-mail: MtnProvInvRel@worldnet.att.net |
