Spin-out of Kennady Diamonds remains on track for April 2012
Shares Issued and Outstanding: 80,345,558
NYSE- AMEX: MDM
Feb. 27, 2012
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.
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
, and is expected to be completed by
Commenting, Mountain Province President and CEO
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."
also announced that preparations for the planned spin-out of the Kennady North project into a newly listed public company remain on track for
. Shareholders will receive further details of the proposed transaction and planned special meeting in March.
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
. 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
(available on SEDAR) indicates that the Gahcho Kué project has an IRR of 33.9%.
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 mineral indicators.
Mountain Province Diamonds is included in the S&P/TSX Global Mining Index.