Resource World Magazine

56 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 7 MINING C anada's Northwest Territories may be a world-class diamond producer; however, this vast land also hosts many other valuable metals and minerals. The territorial government is taking steps to develop its huge mineral potential. Wally Schumann, Minister of Industry, Tourism and Investment, said, "The NWT's aggressive approach to address - ing challenges during this time of transition in the mining sector has resulted in cutting-edge initiatives. Our continuing commitment to a unified mineral develop- ment strategy places us ahead of the curve and in the elite company of the some of the most progressive jurisdictions in the world. We're open for business in the NWT and we want everyone to know it." Almost a quarter century after explo - ration first began at Kennady Lake 280 km northeast of Yellowknife, global dia- mond giant, De Beers, and JV partner, Mountain Province Diamonds Inc. [MPVD-TSX, NASDAQ], announced com- mercial production in early September at their Gahcho Kué diamond mine. Output is currently being ramped up to achieve full commercial production levels in early January 2017. Canada is the world's third largest dia - mond producer by value and the fifth largest by volume. Underpinned by a US $1 billion capital investment, the development of Gahcho Kué between 2006 and 2015 has already provided a $440 million boost to a recent socio-economic impact study conducted by Ernst and Young for The De Beers Group of Companies. And it will add $5.3 billion more over the mine's lifetime. The Gahcho Kué Mine is a joint venture between The De Beers Group of Companies (51%) and Mountain Province (49%). It is expected to produce approximately 54 million carats of rough diamonds from around 35 million tonnes of scheduled material over its lifetime based on existing resources. However, if past experience in the NWT is any measure, the mine could extend well past its estimated life given the "clustering" nature of commercial dia - mond deposits and the known exploration potential on the property. Diamonds produced at Gahcho Kué to September 30, 2016 totaled approximately 198,000 carats (split on a 51/49% basis). From August 1 to September 30, 2016, the mine processed approximately 130,000 tonnes of ore and recovered approximately 198,000 carats for an average grade of approximately 1.52 carats/tonne. Under the terms of the Gahcho Kué Joint Venture Agreement, De Beers Canada Inc. and Mountain Province bid for all Fancies and Special Diamonds. Fancies are diamonds of a fancy or unusual colour and Specials are diamonds weighing 10.8 car - ats or more. Mountain Province plans on conducting its first sale of diamond pro- duction through its diamond broker based in Antwerp, Belgium mid-January, 2017. Gahcho Kué is the world's largest new diamond mine to achieve commercial pro- duction in the last 13 years. And it will secure the NWT's reputation as being a stable, conflict-free supplier of high qual- ity diamonds for perhaps decades to come. DeBeers has prioritized Northwest Territories-owned, managed and oper- ated businesses to create broader benefits for all community members. In one recent example, Bouwa Whee Catering assumed the contract for catering and other key site services at Gahcho Kué in early December. Kim Truter, CEO of De Beers Canada, Northwest Territories exploration and mining by David Duval DIAMOND SECTOR RETAINS STATUS AS STRONGEST INDUSTRIAL COMPONENT IN NWT WITH GAHCHO KUÉ DEVELOPMENT

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