Canadian diamond miner announces indicated resources boost

Canadian diamond miner Mountain Province Diamonds (NYSE-AMEX: MDM) has calculated an indicated resource increase of 12% on its Gahcho Kue mine in Canada's Northwest Territories while inferred resources jumped by 80%, the company announced on Tuesday.

The estimates push the indicated and inferred resources to 33.8 million tons and 11.3 million tons respectively.

This brings the diamond content of indicated mineral occurences to 56.5 million carats, up from 50.5 in 2009 when the firm last updated the numbers.

Mountain Province is a joint owner of the Gahcho Kue project, with De Beers Canada holding 51% ownership. Gahcho Kué is the world's largest and highest grade diamond development project.

“All the Gahcho Kué kimberlites remain open to depth and Mountain Province is in active discussions with De Beers to evaluate a follow-up Tuzo Deep drill program to test the further depth extension of the Tuzo kimberlite between 564 meters and 750 meters," said Patrick Evans, CEO of the company.

Creative Commons image by: Rosana Prada