TSX and OTCQX: MPVD
TORONTO and NEW YORK, Nov. 23,
2022 /PRNewswire/ -- Mountain Province Diamonds Inc.
("Mountain Province", the
"Company") (TSX: MPVD) (OTC: MPVD) today announces positive
exploration results for its 100%-held Kennady North Project. The
Kennady North Project includes over 113,000 hectares of claims and
leases that completely surround the Gahcho Kué Diamond Mine. The
2022 exploration program focused on new discoveries through a
detailed analysis of both new and historic geophysical, geological,
and kimberlite indicator mineral ('KIM') data. Interim results for
the winter program that focused on geophysical surveys and drilling
of lake-based anomalies were reported previously (see news
release May 17, 2022). The summer
program focused on drilling land-accessible geophysical targets and
on follow-up till sampling over KIM anomalies generated from the
2021 till sampling program. The combined exploration results for
2022 are summarized in this news release including the new
discovery of the Hearn Northwest Extension at the Gahcho Kué joint
venture as previously announced.
Highlights of the 2022 Kennady North Exploration
Program
- The new KE kimberlite area discovered
-
- New and distinct occurrence that is located roughly 450 meters
east of the Kelvin kimberlite
- Defined by three drillholes that have confirmed a series of
hypabyssal kimberlite sheets ('HK') with a maximum HK intersect of
2.13 meters, that appear to be new and distinct from the nearby
Kelvin deposit
- Further drilling of the KE kimberlite is currently planned for
the 2023 exploration program
- Over 5,000m of Exploration
Drilling
-
- 25 of 35 exploration drillholes intersected kimberlite
- Eight volcaniclastic kimberlite intersections on the North
Anomaly
- Geophysical Surveys
-
- 1,291 line-km of airborne magnetics and electromagnetics
- 189 line-km of high-resolution resistivity (ARRT) data
- 30 line-km of ground magnetics
- 3,139 ground gravity and 161 bathymetry measurements
- Historic HLEM and magnetics identified the KE kimberlite
- Kimberlite indicator Minerals
-
- Over 600 strategic till samples processed and assessed from
2021
- Over 300 follow-up till samples in 2022 confirming the 2021
sampling strategies
- Positive KIM dispersals identified new areas for geophysics and
drilling
- Metals Exploration
-
- Intersection of a hydrothermal breccia with quartz veining and
sulfides, which remains under review
- Glacial sediment geochemistry identified areas of interest
- A new claim block was added after a detailed review of
historical drill logs was conducted and determined that a drill
hole was logged in the early 1990's as an intersection from 108 to
176 meters of granite/quartz syenite with magnetite veinlets
throughout the interval and 2% molybdenite based on visual
estimations
Exploration Drilling
A total of 5,355.9 meters of exploration drilling was completed
over the 2022 programs with 25 of 35 drillholes intersecting
kimberlite.
The KE kimberlite is a new and distinct occurrence that is
located roughly 450 meters east of the Kelvin kimberlite. The KE
discovery resulted from a review of historical horizontal loop
electromagnetic ('HLEM') and magnetic geophysical data and was
drilled at the end of the summer program. The KE kimberlite is
defined by three drillholes that have confirmed a series of
hypabyssal kimberlite sheets ('HK') with a maximum HK intersect of
2.13 meters. Further drilling of the KE kimberlite is planned for
the 2023 exploration program.
Drilling on the North, South, KS, G6, A003 and P1 anomalies was
guided by results from the winter ARRT and ground gravity surveys.
Kimberlite was intersected at all but the G6, A003 and P1 areas,
see the map on the following page.
Thirteen of fifteen drillholes completed at the North Anomaly
have identified depth-extensive zones of HK mixed with highly
altered country rock up to 6.93m in
thickness. VK intersects mixed with HK up to 7.05m in thickness have been intersected in eight
drillholes, with 3D modeling of the drilling indicating lateral
continuity for the VK. At the Kelvin and Faraday kimberlites, VK
comprises the greatest volume and its presence at the North Anomaly
is considered a good indication for volume potential to be
discovered with further drilling.
At the South Anomaly all five drillholes have HK present with
thicknesses up to 6.96 meters. Country rock breccia consisting of
highly comminuted gneiss mixed with kimberlite has also been
observed, and is considered indicative of volume potential for the
South Anomaly. Five of seven drillholes at the KS anomaly
intersected HK kimberlite up to 3.52m
in thickness.
Locations for the drill-tested anomalies relative to the Kelvin
and Faraday kimberlites are shown in the first image, with the
anomalies abbreviated in bold. Also shown are known kimberlites as
green diamonds.
Two drillholes each at the A003 and G6 anomalies were completed
with only diabase and granitoid crustal rocks encountered. A
summary of all 2022 exploration drilling is provided in the table
shown. Numbers in bold italics include VK intersects.
KE
Anomaly
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-033
|
151.4
|
-41.5
|
67.35
|
67.45
|
0.1
|
196
|
|
|
plus
|
69.55
|
69.9
|
0.35
|
|
|
|
plus
|
70.5
|
70.7
|
0.2
|
|
|
|
plus
|
75.1
|
75.7
|
0.6
|
|
|
|
plus
|
76.3
|
76.55
|
0.25
|
|
|
|
plus
|
79.1
|
79.25
|
0.15
|
|
KDI-22-034
|
154.5
|
-65.9
|
60
|
60.1
|
0.1
|
179
|
|
|
plus
|
61.05
|
61.75
|
0.7
|
|
|
|
plus
|
65.1
|
66.05
|
0.95
|
|
|
|
plus
|
67.45
|
68.2
|
0.75
|
|
KDI-22-035
|
154.8
|
-84.7
|
65.42
|
65.96
|
0.54
|
158
|
|
|
plus
|
70.47
|
72.6
|
2.13
|
|
|
|
plus
|
73.09
|
73.8
|
0.71
|
|
North
Anomaly
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-008
|
128.5
|
-71.2
|
75.86
|
81.48
|
5.62
|
121
|
KDI-22-010
|
135.8
|
-49.4
|
83.27
|
86.59
|
3.32
|
127.4
|
KDI-22-012
|
47.9
|
-46.1
|
107.05
|
113.98
|
6.93
|
150
|
KDI-22-013
|
49.4
|
-60.7
|
81.56
|
81.75
|
0.19
|
121
|
|
|
plus
|
82.61
|
82.98
|
0.37
|
|
|
|
plus
|
83.68
|
83.88
|
0.2
|
|
|
|
plus
|
85.07
|
85.45
|
0.38
|
|
|
|
plus
|
86.1
|
86.13
|
0.03
|
|
|
|
plus
|
86.3
|
86.52
|
0.22
|
|
|
|
plus
|
87.72
|
88.75
|
1.03
|
|
KDI-22-015
|
45.6
|
-51.8
|
76.76
|
76.85
|
0.09
|
130
|
|
|
plus
|
77.66
|
78.6
|
0.94
|
|
|
|
plus
|
80.73
|
81.06
|
0.37
|
|
|
|
plus
|
83.92
|
86.82
|
2.9
|
|
KDI-22-016
|
45
|
-62
|
69.5
|
72.4
|
2.9
|
|
|
|
plus
|
73.15
|
73.7
|
0.55
|
|
KDI-22-019
|
221.9
|
-52.4
|
76.6
|
76.76
|
0.16
|
|
|
|
plus
|
77.13
|
78.83
|
1.7
|
|
KDI-22-021
|
220.8
|
-60.8
|
69.12
|
72.16
|
3.04
|
152
|
|
|
plus
|
73.57
|
77.56
|
3.99
|
|
|
|
|
|
|
|
|
KDI-22-023A
|
216.2
|
-68.3
|
60.81
|
63.62
|
2.81
|
80
|
|
|
plus
|
64.32
|
65.68
|
1.36
|
|
KDI-22-023B
|
217
|
-68.5
|
59.85
|
64.72
|
4.78
|
149
|
|
|
|
|
|
|
|
KDI-22-024
|
224.9
|
-84
|
63.1
|
68.01
|
4.91
|
104
|
KDI-22-025
|
154.6
|
-53.9
|
55.78
|
58.3
|
2.52
|
98
|
KDI-22-026
|
239.6
|
-57.1
|
89.24
|
96.29
|
7.05
|
141.6
|
KDI-22-027
|
165.2
|
-54.9
|
--
|
--
|
--
|
176
|
KDI-22-028
|
178.4
|
-68.8
|
--
|
--
|
--
|
176
|
South
Anomaly
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-001
|
307.4
|
-46.1
|
109
|
113.13
|
4.13
|
163
|
KDI-22-002
|
294.3
|
-65
|
84.19
|
90.06
|
5.87
|
114.7
|
KDI-22-003
|
48.6
|
-45.5
|
115.02
|
121.98
|
6.96
|
142
|
KDI-22-004
|
46.2
|
-69.4
|
98.57
|
99.25
|
0.68
|
139
|
KDI-22-007
|
182
|
-89
|
66.03
|
68.42
|
2.39
|
121
|
|
|
plus
|
79.97
|
81.45
|
1.48
|
|
|
|
plus
|
85.48
|
86.57
|
1.09
|
|
KS
Anomaly
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-005
|
35.1
|
-46.1
|
217.08
|
218.57
|
1.49
|
163
|
KDI-22-006
|
31.3
|
-54.7
|
--
|
--
|
--
|
114.7
|
KDI-22-009
|
26
|
-67.7
|
63.51
|
63.76
|
0.25
|
93.2
|
KDI-22-011
|
24.9
|
-52.5
|
--
|
--
|
--
|
152
|
KDI-22-018
|
27
|
-50
|
35.5
|
35.65
|
0.15
|
160
|
|
|
plus
|
37
|
37.25
|
0.25
|
|
|
|
plus
|
40.2
|
40.5
|
0.3
|
|
|
|
plus
|
46.46
|
47.71
|
1.25
|
|
|
|
plus
|
65.14
|
66
|
0.86
|
|
KDI-22-020
|
26.4
|
-65
|
31.91
|
32.08
|
0.17
|
148
|
|
|
plus
|
37.52
|
37.89
|
0.37
|
|
|
|
|
46.91
|
50.43
|
3.52
|
|
KDI-22-022
|
26.4
|
-80
|
40.03
|
43
|
2.97
|
124
|
|
|
plus
|
43.2
|
43.75
|
0.55
|
|
P1 Hydrothermal
Breccia
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-031
|
247
|
-54.5
|
--
|
--
|
--
|
200
|
|
quartz
vein
|
|
56.47
|
59.41
|
2.94
|
|
|
quartz
vein
|
|
186.33
|
190.56
|
4.23
|
|
KDI-22-032
|
246.2
|
-83.3
|
--
|
--
|
--
|
170
|
|
quartz
vein
|
|
169
|
170
|
1
|
|
G6 Anomaly (diabase,
granitoid)
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-014
|
228.7
|
-47.6
|
--
|
--
|
--
|
200
|
KDI-22-017
|
227
|
-61.1
|
--
|
--
|
--
|
200
|
A003S Anomaly
(granitoid)
|
Drill
Hole
|
Azimuth2
|
Inclination2
|
Kimberlite
Intersect1,2 (m)
|
End of
Hole2(m)
|
From
|
To
|
Length1
|
KDI-22-029
|
75.2
|
-54.1
|
--
|
--
|
--
|
119
|
KDI-22-030
|
76.7
|
-46.4
|
--
|
--
|
--
|
95
|
1Kimberlite intersects are not
true thicknesses. 2Initial measurements from field logs
may vary after final surveying and logging is
completed.
|
P1 Hydrothermal Breccia
Two drillholes testing a near-land gravity and ARRT anomaly
intersected hydrothermal breccia with associated sulfide
mineralization that has not been previously observed in this
region. The veining is clearly hydrothermal with quartz exhibiting
both massive and vuggy textures that are intimately associated with
pyrite. The veins run from a few centimeters up to 4.23 meters in
continuous thickness and are associated with hydrothermally altered
granite and diabase up to 60m in
thickness. Initial whole rock and trace element data for 14 core
samples of both the veins and altered country rock have not
revealed any anomalous levels of base or precious metals. Further
sampling of the hydrothermal breccia for geochemical analysis is
presently underway with results expected in early 2023. Selected
images of the P1 core are provided in the second image.
Geophysics
The target areas of interest ('AOI') were selected from
recently-compiled studies of glacial geology and kimberlite
indicator mineral (KIM) dispersions over the project area.
Additional target AOI were selected following a review of
historical geophysical data for Kennady North. These datasets were
reviewed in several in-house workshops held in late 2021 and early
2022, with final ranking of sixteen AOI completed in a joint
workshop held with De Beers in February
2022. The sixteen AOI were scheduled for ARRT and ground
gravity surveys during the winter program, with a total of 188.8
line-km of ARRT and 3,139 gravity stations completed over the
targets. ARRT is a proprietary land-based resistivity system
developed by Aurora Geoscience (Yellowknife, NT) that aided in the discovery
of kimberlite at the NA, SA and KS anomalies as described above.
ARRT is a high-resolution ground resistivity system developed by
Aurora Geoscience Ltd. (Yellowknife,
NT) that recognizes the physical contrast between competent
country rock versus country rock that is broken and altered from
emplacement of the adjacent kimberlite.
In addition to the ground geophysical surveys, an airborne
magnetic/electromagnetic survey was conducted over an area located
immediately southeast of Gahcho Kué for which no historical
geophysical data existed. A total of 1,291 line-km of data were
collected over the area. One area that lies within the Palmer P13
KIM area of interest was surveyed with ground magnetics and
gravity. The two anomalies identified on the new survey are
indicated as red circles on the third and fourth images.
The discovery of the KE kimberlite resulted from an ongoing
re-interpretation of our historic HLEM and magnetic data that has
identified an additional 13 drill-ready target areas within the
core area of the Kennady North Project. These are included in the
red circles in the fifth image. Many of the anomalies lie near or
within Palmer ('P') AOI that are defined by KIM dispersions. These
new anomalies are presently under review with the intent to drill
in winter of 2023.
Kimberlite Indicator Minerals
Over 600 till samples were collected over the project area in
2021, with half of those covering the recently staked Kennady East
claims. The results have identified a ubiquitous dispersion of
chromite on the Kennady East claims. Based on morphology and
surface features, the chromite is believed to be non-kimberlitic
and is eroded from metavolcanics and metasediments that dominate
the geology of these claims. Non-kimberlitic olivine is also
present and is likely derived from the same sources as the
chromite.
Within the background chromite on Kennady East, two separate KIM
anomalies are defined by pyrope and by chrome diopside, and
follow-up sampling was conducted in 2022 to fill in these
anomalies. On the Western Claims, the 2022 infill sampling has also
confirmed the presence of a strong KIM train in the southwest of
the project area, with 29 pyrope in one sample at the suspected
head of one of the dispersions. Results for the remaining samples
collected in 2022 are expected in early 2023 and will further
resolve these early results.
All of the samples were treated at the SRC Diamond Lab
(Saskatoon, SK) for KIM recovery.
The distribution of 2021 till sample results is shown in the sixth
image, with blue arrows indicating pyrope and chrome diopside
anomalies on the Kennady East Claims, and the orange arrow showing
the location of the sample containing 29 pyrope.
Metals Exploration
An extensive geochemical and drilling database exists over the
Kennady North project area. In 2019 a due diligence review of
historical drilling and glacial sediment geochemical data was
started, to ensure that both diamonds and metals discovery
potential was not overlooked. Historic drillhole MPV-97-021C that
was logged from 108 to 176 meters was reported as granite/quartz
syenite with magnetite veinlets throughout the interval and 2%
molybdenite based on visual estimations. Consequently five claims
were secured over rocks of interest associated with this drillhole.
The Western Extension claims are noted on the seventh image, which
also shows the distribution of glacial sediment geochemistry
samples for the project area.
****
About the Company
Mountain Province Diamonds is a 49% participant with De
Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest
Territories. The Gahcho Kué Joint Venture consists of
several kimberlites that are actively being mined, developed, and
explored for future development. The Company also controls over
113,000 hectares of highly prospective mineral claims and leases
surrounding the Gahcho Kué Mine that include an Indicated mineral
resource for the Kelvin kimberlite and Inferred mineral resources
for the Faraday kimberlites. Kelvin is estimated to contain 13.62
million carats (Mct) in 8.50 million tonnes (Mt) at a grade of 1.60
carats/tonne and value of US$63/carat. Faraday 2 is estimated to contain
5.45Mct in 2.07Mt at a grade of 2.63 carats/tonne and value of
US$140/ct. Faraday 1-3 is estimated
to contain 1.90Mct in 1.87Mt at a grade of 1.04 carats/tonne and
value of US$75/carat. All resource
estimations are based on a 1mm diamond size bottom cut-off.
For further information on Mountain Province Diamonds and to
receive news releases by email, visit the Company's website at
www.mountainprovince.com.
Qualified Person
The disclosure in this news release of scientific and technical
information regarding Mountain
Province's mineral properties has been reviewed and approved
by Matthew MacPhail, P.Eng., MBA,
and Tom E. McCandless, Ph.D.,
P.Geo., both employees of Mountain Province Diamonds and Qualified
Persons as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects.
Caution Regarding Forward Looking Information
This news release contains certain "forward-looking
statements" and "forward-looking information" under applicable
Canadian and United States
securities laws concerning the business, operations and financial
performance and condition of Mountain Province Diamonds Inc.
Forward-looking statements and forward-looking information include,
but are not limited to, statements with respect to operational
hazards, including possible disruption due to pandemic such as
COVID-19, its impact on travel, self-isolation protocols and
business and operations, estimated production and mine life of the
project of Mountain Province; the
realization of mineral reserve estimates; the timing and amount of
estimated future production; costs of production; the future price
of diamonds; the estimation of mineral reserves and resources; the
ability to manage debt; capital expenditures; the ability to obtain
permits for operations; liquidity; tax rates; and currency exchange
rate fluctuations. Except for statements of historical fact
relating to Mountain Province,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "anticipates," "may," "can," "plans," "believes,"
"estimates," "expects," "projects," "targets," "intends," "likely,"
"will," "should," "to be", "potential" and other similar words, or
statements that certain events or conditions "may", "should" or
"will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Mountain Province and
there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially
from results anticipated by such forward-looking statements include
the development of operation hazards which could arise in relation
to COVID-19, including, but not limited to protocols which may be
adopted to reduce the spread of COVID-19 and any impact of such
protocols on Mountain Province's
business and operations, variations in ore grade or recovery rates,
changes in market conditions, changes in project parameters, mine
sequencing; production rates; cash flow; risks relating to the
availability and timeliness of permitting and governmental
approvals; supply of, and demand for, diamonds; fluctuating
commodity prices and currency exchange rates, the possibility of
project cost overruns or unanticipated costs and expenses, labour
disputes and other risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Mountain Province's most recent Annual
Information Form and in the most recent MD&A filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Mountain
Province cautions that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves
on forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Mountain Province
believes that the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly
relied upon. These statements speak only as of the date of this
news release.
Although Mountain Province
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Mountain
Province undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered as the property is
developed.
Further, Mountain Province
may make changes to its business plans that could affect its
results. The principal assets of Mountain
Province are administered pursuant to a joint venture under
which Mountain Province is not the
operator. Mountain Province is
exposed to actions taken or omissions made by the operator within
its prerogative and/or determinations made by the joint venture
under its terms. Such actions or omissions may impact the future
performance of Mountain Province.
Under its current note and revolving credit facilities Mountain Province is subject to certain
limitations on its ability to pay dividends on common stock. The
declaration of dividends is at the discretion of Mountain Province's Board of Directors,
subject to the limitations under the Company's debt facilities, and
will depend on Mountain Province's
financial results, cash requirements, future prospects, and other
factors deemed relevant by the Board.
Investor Contact: Mark Wall, President and CEO, 161
Bay Street, Suite 1410, Toronto, Ontario M5J
2S1, Phone: (416) 361-3562, E-mail:
info@mountainprovince.com; Matthew MacPhail, Chief Technical
Officer, 161 Bay Street, Suite 1410, Toronto,
Ontario M5J 2S1, Phone: (416) 361-3562, E-mail:
info@mountainprovince.com
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