Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mountain Province Diamonds (TSX:MPV), which holds a 49% stake in the Gahcho Kué mine in Canada, has found a new kimberlite on the claims and leases surrounding the operation in the Northwest Territories.
The new KE kimberlite is a distinct occurrence that is located about 450metres east of the Kelvin kimberlite, the Toronto-based miner said on Wednesday.
The find was the result of the company’s 2022 program, which focused on new discoveries through a detailed analysis of both new and historic geophysical, geological, and kimberlite indicator mineral data.
The KE kimberlite, identified by the end of the summer, adds to the Hearn Northwest extension at Gahcho Kué, found earlier this year.
Further drilling of the KE kimberlite is planned for the 2023 exploration program, Mountain Province said.
The KE discovery comes about six months after the diamond company reported positive kimberlite intersections from drilling at its Kennady North project last winter. Hypabyssal kimberlite and volcaniclastic kimberlite was intersected in 16 of 20 drill holes at three sites at Kennady North, located about 300 km northeast of Yellowknife.
The Gahcho Kué mine is slated to operate until 2028. The territory’s two other diamond mines – Ekati, operated by Arctic Canadian Diamond – and Rio Tinto’s (ASX, NYSE, LON: RIO) Diavik are expected to close in 2024 and 2025, respectively. Diavik is about 30 km southeast of Ekati, and Gahcho Kué is 125 km southeast of Diavik.
Gahcho Kué is a joint venture between Mountain Province and De Beers Group, which owns 51%.
