Jun 12, 2019

Mountain Province Announces Discovery of New Kimberlite at Gahcho Kué; First New Find in 20 Years

Mountain Province Diamonds Inc. announced the discovery of a new kimberlite at its Gahco Kué lease in Canada, stating that this first new discovery in 20 years confirms that the project is on track for discovering new kimberlites in this region.

The newly-discovered Wilson kimberlite, named after Alice Evelyn Wilson (1881-1964), who is officially recognized as Canada's first female geologist, lies well within the open pit mine plan for the Tuzo kimberlite, the Company said in a statement released yesterday.

The kimberlite is located roughly 200 meters east of the Tuzo kimberlite and was discovered during drill testing of geophysical and geological anomalies in the area. It intersects up to 119 meters of tuffisitic and hypabyssal kimberlite and has subcrops at surface under recent lake sediment.

Representative samples of the core extracted through drill holes have been shipped to the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council for caustic fusion recovery of microdiamonds. A total of 115.2 kilograms of kimberlite was treated for microdiamonds, with 480 diamonds recovered in the +0.075mm size classes. Five +0.85mm diamonds included in the result weigh a total of 0.32 carats, with the largest stone being a 0.28 carat colorless octahedral aggregate.

President and CEO of Mountain Province Stuart Brown commented: "This very positive development, the discovery of the Wilson kimberlite, is a result of the combined efforts between Mountain Province and De Beers Canada, who are operators of the Gahcho Kué JV. The discovery of Wilson demonstrates the high exploration potential of the Gahcho Kué JV area, and after a 20-year discovery hiatus, it confirms that we are on track for discovering new kimberlites in this region. This discovery also heightens our focus on the potential for more discoveries in the corridor between the Gahcho Kué JV and the Kelvin-Faraday kimberlites."

Currently, the drilling and microdiamond data for the Wilson kimberlite are not sufficiently well-constrained to define a Mineral Resource, and as such the Wilson kimberlite is considered a Target for Further Exploration (TFFE).

Vice President of Exploration Dr. Tom McCandless commented: "While the results are preliminary, both the microdiamond and 3D modeling data suggest that the Wilson kimberlite will add positively to the mine at Gahcho Kué. With this important discovery, what would have formerly been discarded as waste rock has, through methodical exploration, now been converted to rock of value as we move forward with development of the Tuzo open pit."

Additional sampling of core from Wilson for microdiamond and geological assessment is presently underway. Further drilling to delineate the northern extent of the Wilson kimberlite is also in the planning stage, with the interpretation of all new results expected later in 2019.