Mountain Province Diamonds Inc has entered into a definitive arrangement agreement pursuant to which Mountain Province will acquire all of the issued and outstanding common shares of Kennady Diamonds by way of a court-approved plan of arrangement.
David E. Whittle, Interim President and CEO of Mountain Province, stated: “The Kennady assets are a strong complement to Mountain Province’s interest in the Gahcho Kué project, significantly adding to our attributed resource base. Kennady’s exploration efforts have been very successful and we have high confidence in our ability to continue that success, not only through expanding the existing resources at Kelvin and Faraday but through the potential for further discoveries, not just in the Kelvin-Faraday corridor but elsewhere across the property.”
Dr. Rory O. Moore, President and CEO of Kennady, stated: “We are excited that our shareholders have the opportunity to benefit from the near-term cash flow of the world-class Gahcho Kué mine while retaining exposure to the significant exploration upside on the current Kennady assets.”
This acquisition adds Kennady’s 100% owned diamondiferous bodies, which contain Indicated Resources of 13.62 Mct and Inferred Resources of 5.02 Mct. There is the Kelvin kimberlite – Indicated 13.62 Mct at an average grade of 1.60 ct/t and average value of $63/ct as estimated by a 2016 bulk sample. There is also the Faraday kimberlite cluster – Inferred Resources of 5.02 Mct at an average grade of 1.54 ct/t and average value of $98/ct as estimated by a 2017 bulk sample
There is upside to grow resources at both Kelvin and Faraday and develop potential resources at the Doyle and MZ kimberlites and the purchase adds 67,164 ha of highly prospective and 100%-owned exploration ground strategically surrounding the Gahcho Kué mine.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. Gahcho Kué is the world’s largest new diamond mine, consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12 year mine plan.
Kennady Diamonds owns 100% of the Kennady North diamond project also located in the Northwest Territories. Kennady North is adjacent to the Gahcho Kué mine.