• Project Overview
• Development
• Joint Venture Agreement

De Beers Canada is Mountain Province’s Joint Venture partner and the operator of the Kennady Lake project. Kennady Lake is currently in the permitting phase.
Click here to view Project Description
Click here to view Technical Study

Recent Developments

Definitive Feasibility Study

An independent NI 43-101 definitive feasiblity study was completed and filed in December 2010. The feasibility study is available on SEDAR.

The feasibility study confirms that the Kennady Lake Project (Gahcho Kué) development plan is economically viable, technically credible, and environmentally sound.

Feasibility Study Highlights:

• IRR - 33.9% (excluding sunk costs)
• Initial Capital - $549.5M
• Working Capital - $49.4M
• Sustaining Capital - $36.1M
• Operating Costs - $48.68 per tonne
• Mine Life - 11 years
• Reserve Grade - 1.57 carats per tonne
• Average Annual Production - 4.5 million carats
• Total Diamond Production - 49 million carats
• Modeled Base Case Diamond Price - $102.48 per carat*

* Base case modeled diamond price is derived from the mean average between the modeled values of De Beers and WWW International Diamond Consultants (based on their respective April 2010 price books) and inclusive of a real 1% price escalation over LOM, less an assumed 4% marketing fee (which Mountain Province is not subject to).

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Environmental Impact Statement (EIS)

De Beers Canada, as Operator of the Kennady Lake diamond project, submitted an 11,000-page EIS in December 2010 in support of the Joint Venture's applications for construction and operating permits.

The EIS is being reviewed by the Mackenzie Valley Environmental Impact Review Board (MVEIRB), which has appointed a Panel to manage the Environmental Review (ER). In July 2011, the Panel declared that the EIS conforms to the rigorous terms of reference set for the ER.

The Panel has also published a work plan which indicates that the ER should be completed by July 2013, following which the Panel will submit its recommendations to the Canadian federal government which has the responsibility for issuing the construction and operating permits.

The ER is a transparent and open process, and progress can be followed on the MVEIRB website.

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