Mountain Province Diamonds Inc. issued an update on its mining operations in Canada where the company is prospecting for diamonds.

Mountain Province Diamonds Inc. is involved in a joint venture with De Beers Canada Inc. at the Gahcho Kué Project located in the Northwest Territories. The project is approximately 74,000 acres and is held by the joint venture through a 21 year renewable lease.

Mountain Province Diamonds Inc. reported that an update of a previous evaluation study at the Gahcho Kué Project placed a 40% higher valuation on the resources recovered from the site. The update was based on higher market prices and increased accuracy of the sampling of the diamonds.

The Gahcho Kué Project contains multiple kimberlite clusters, with the joint venture focusing on the Hearne, Tuzo and 5034 clusters. In 2010, a feasibility study commissioned by Mountain Province Diamonds Inc. and its joint venture partner indicated that these three clusters had probable diamond reserves of 1.57 carats per ton for a total of 49 million carats.

The updated study was conducted in April 2011 by WWW International Diamond Consultants Ltd. Mountain Province Diamonds Inc. is currently working to obtain a permit to continue mining at the property.

For more information on the company, go to www.mountainprovince.com

Let us hear your thoughts below: