Spin-out of Kennady Diamonds remains on track for April 2012
Shares Issued and Outstanding: 80,345,558
NYSE- AMEX: MDM
TORONTO AND NEW YORK, Feb. 27, 2012 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company")
(TSX: MPV, NYSE-AMEX: MDM) is pleased to announce that final analysis
of the Fugro airborne gravity gradiometry (AGG) survey flown over the
Kennady North diamond project late last year has resulted in the
identification of 106 geophysical targets. Mountain Province is also
pleased to announce that the Company will be commencing a 560
line-kilometre total magnetic field (MAG) ground survey this week over
the geophysical targets identified by the AGG survey.
The MAG survey will be conducted at 20 metre line-spacing and the
results will enable the Company to prioritize the geophysical targets
for drilling as soon as practically possible. The MAG survey is being
managed by Aurora Geosciences Ltd., contractors to Mountain Province,
and is expected to be completed by mid-March 2012.
Commenting, Mountain Province President and CEO Patrick Evans said: "We
are very excited about the large number of geophysical targets that
have been identified at Kennady North. We expect the results from the
MAG survey to provide excellent data to guide our planned drill
program. Besides the excellent micro-diamond counts and size frequency
distribution from the known kimberlites at Kennady North, a 0.40 carat
diamond was recovered from a 65 kilogram sample taken from Faraday and
the samples recovered from Faraday also exhibit an unusually high
percentage of desirable yellow diamonds."
Mountain Province also announced that preparations for the planned
spin-out of the Kennady North project into a newly listed public
company remain on track for mid-April 2012. Shareholders will receive
further details of the proposed transaction and planned special meeting
Finally, Mountain Province expects to provide an update before the end
of the week on the Tuzo Deep drill program and AGG survey conducted
over the De Beers JV project at Kennady Lake.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué JV located
at Kennady Lake in Canada's Northwest Territories. The Gahcho Kué
Project consists of a cluster of four diamondiferous kimberlites, three
of which have a probable mineral reserve of 31.3 million tonnes grading
1.57 carats per tonne for total diamond content of 49 million carats.
Gahcho Kué is the world's largest and highest grade new diamond
development project. A December, 2010 feasibility study filed by
Mountain Province (available on SEDAR) indicates that the Gahcho Kué
project has an IRR of 33.9%.
Mountain Province also controls 100% of the Kennady North Diamond Project adjacent to the De Beers JV property. Kennady North hosts three known
diamondiferous kimberlites and a number of unexplained kimberlite
Mountain Province Diamonds is included in the S&P/TSX Global Mining
This news release has been prepared under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under National
This news 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 the control of the Company.
SOURCE Mountain Province Diamonds Inc.
For further information:
Mountain Province Diamonds Inc.
Patrick Evans, President and CEO
161 Bay Street, Suite 2315
Toronto, Ontario M5J 2S1
Phone: (416) 361-3562