EX-99.3 4 ex993.htm NEWS RELEASE DATED JANUARY 11, 2007 News Release dated January 11, 2007
Exhibit 99.3

 
NEWS RELEASE

January 11, 2007         
Shares Issued and Outstanding: 55,575,715 
TSX: MPV
AMEX: MDM
  
Mountain Province Diamonds Announces Results of 2006 Drill Campaign at Gahcho Kué Project

Results in line with expectations

Toronto and New York, January 11, 2007 - Mountain Province Diamonds Inc (TSX: MPV, AMEX: MDM) (the “Company”) today announced the results of the 2006 core drilling program conducted at the Gahcho Kué diamond project in Canada’s Northwest Territories. The primary purpose of the drill program, which was managed by project operator De Beers Canada Inc (“De Beers”), was to further delineate the kimberlite bodies of the 5034 North Lobe and Tuzo pipe and to carry out geotechnical drilling for pit design.

Twenty-five of the originally planned 31 core holes were completed as part of the winter drill program. As announced on July 26, 2006, a summer drill program was conducted to complete four of the outstanding core holes from the winter program. These additional holes were completed in August 2006. Based on the encouraging results the program was extended to include two additional holes at the Tuzo kimberlite pipe; bringing the total number of core holes completed this year to 31. The results of this program are contained in Table 1 below.

Table 1

2006 Core Drilling Data

HOLE
PIPE
INCLINATION (degrees)
HOLE
DIAMETER
PURPOSE
FINAL
HOLE
DEPTH (m)
KIMBERLITE
DRILLED (m)
KIMBERLITE
WEIGHT (kg)
MACRO
DIAMOND
STONE
COUNT
(>500 microns)
MICRO
DIAMOND
STONE
COUNT
(>75 microns
<500 microns)
MPV-04-234C
5034 NL
-60
HQ
Hydro-geology
359
103.55
89
53
728
MPV-05-239C
5034 NL
-80
HQ
Hydro-geology
402
162.75
121
62
1074
MPV-05-241C
5034 NL
-90
HQ
PILOT
411
266
192
87
879
 
 
 
MPV-05-242C
5034 NL
-80
HQ/NQ
PILOT
303
237
192
62
1074
MPV-06-243C
5034 NL
-80
HQ
PILOT
378
273
224
99
902
MPV-06-244C
5034 NL
-75
HQ
PILOT
333
257
200
80
378
MPV-06-245C
5034 NL
-80
HQ
PILOT
357
285
192
101
1140
MPV-06-254C
5034
-65
HQ
GEOTECHNICAL
180
37.28
Not processed
n/a
n/a
MPV-06-255C
5034
-60
HQ
GEOTECHNICAL
221
17.79
Not processed
n/a
n/a
MPV-06-256C
5034
-55
HQ
DELINEATION
258
28.39
Not processed
n/a
n/a
MPV-06-258C
5034 NL
-90
HQ
DELINEATION
385
306.41
253
124
1321
MPV-06-260C
5034 NL
-60
HQ
GEOTECHNICAL
369
37.39
40
19
213
MPV-06-261C
5034 NL
-60
HQ
GEOTECHNICAL
387
64.72
57
21
276
MPV-06-267C
COUNTRY ROCK
-90
HQ
CIVIL ENGINEERING
27
No kimberlite
0
0
0
MPV-06-269C
5034 NL
-65
HQ
GEOTECHNICAL
380
No kimberlite
0
0
0
MPV-06-275C
5034 NL
-65
HQ
DELINEATION
233
50.07
49
17
258
MPV-06-264C
HEARNE
-60
HQ
GEOTECHNICAL
250
No Kimberlite
0
0
0
MPV-06-246C
TUZO
-60
HQ
DELINEATION
204
54
Not processed
n/a
n/a
MPV-06-247C
TUZO
-90
HQ
PILOT
408
386
49
14
137
MPV-06-248C
TUZO
-90
HQ
PILOT
295
272
Not processed
n/a
n/a
MPV-06-249C
TUZO
-65
HQ/HQ3
GEOTECHNICAL
402
124
Not processed
n/a
n/a
MPV-06-250C
TUZO
-60
HQ
DELINEATION
259
80
Not processed
n/a
n/a
MPV-06-252C
TUZO
-60
HQ
DELINEATION
169
39
23
12
44
MPV-06-263C
TUZO
-80
HQ
GEOTECHNICAL
411
125.40
Not processed
n/a
n/a
MPV-06-266C
TUZO
-60
HQ
DELINEATION
75
26
Not processed
n/a
n/a
MPV-06-268C
TUZO
-55
HQ
DELINEATION
90
0
0
0
0
MPV-06-270C
TUZO
-70
HQ
GEOTECHNICAL
426
174 - 51.7 raft
Not processed
n/a
n/a
MPV-06-271C
TUZO
-60
HQ
DELINEATION
66
8.70
Not processed
n/a
n/a
MPV-06-272C
TUZO
-65
HQ
GEOTECHNICAL
395
165.15 -80.2 raft
Not processed
n/a
n/a
MPV-06-273C
TUZO
-55
HQ
DELINEATION
230
No Kimberlite
0
0
0
 
 
 
MPV-06-274C
TUZO
-60
HQ
DELINEATION
212
79.25
Not processed
n/a
n/a
MPV-06-276C
TUZO
-70
HQ/NQ
DELINEATION
571
0.69
Not processed
n/a
n/a
MPV-06-277C
TUZO
-70
HQ/NQ
DELINEATION
540
12.7
Not processed
n/a
n/a

PURPOSE DEFINITION
 
Pilot: Core Hole Precursor for Placement of Evaluation Hole
Delineation: Pipe Contact Pierce Point
Geotechnical:   Geotechnical Data Acquisition to Facilitate Mine Design
Civil Engineering:  Geotechnical Data Acquisition to Facilitate Mine Infrastructure Design
  
Core from two previously drilled 5034 North Lobe holes (MPV-04-234C and MPV -05-239C) was also processed for micro-diamonds and the results are included above.

Furthermore:

1. 5034 drill hole 254C was a geotechnical hole drilled between the 5034 South Pipe and the Wallace kimberlite anomaly, which lies to the south-west of the 5034 South Pipe on the track to the Hearne kimberlite pipe. This hole was sunk to establish the presence of kimberlite and investigate ground conditions. Kimberlite was recovered between depths of 95.37 meters and 132.65 meters, indicating the possible continuity of the kimberlite between the 5034 South Lobe and the Wallace kimberlite anomaly.  The hole sits outside the current design of the 5034 mining pit.

2. 5034 drill hole 255C was a geotechnical hole drilled to determine the ground conditions between the 5034 South Lobe and the 5034 West Lobe, and their possible connection.  Kimberlite was recovered between depths of 96.36 meters and 114.5 meters, indicating the possible continuity of the kimberlite between the South and West lobes. This hole also sits outside of the current design of the 5034 mining pit.

3. 5034 drill hole 256C was a delineation hole sunk to obtain a pierce point on both faces of 5034 West Lobe where there is insufficient pierce point data. 

[Note: Please refer to the Mountain Province website (www.mountainprovince.com) for a Gahcho Kué kimberlite cluster location map.]

With respect to Tuzo, two of the drill holes (MPV-06-247C and MPV-06-252C) encountered what appears to be a new kimberlite phase called the Black TKB. To gain a better understanding  of the Black TKB the core from those two holes was processed for micro-diamonds.

As announced on December 19, 2006, the Joint Venture is undertaking an extensive core drilling program at the Tuzo kimberlite this winter and drilling at the Tuzo kimberlite is scheduled to commence within days. This program, which comprises 26 drill holes over 8,400 meters broadly covering a 35 meter grid pattern, is designed to more fully define the volume, geology, dilution, density and grade of the Tuzo pipe and also to upgrade the Tuzo resource. As the 2006 Tuzo drill holes do not conform to the 35 meter grid pattern of the 2007 program, micro-diamond processing of the remaining 2006 Tuzo drill core samples has been deferred pending completion of the 2007 drill program.

Commenting, Mountain Province President and CEO Patrick Evans said: “We are satisfied with the results of the 2006 core drilling campaign, which has delivered results in line with our expectations. The intersection of newly discovered kimberlite between the 5034 South and West lobes and also between the 5034 South Lobe and Wallace anomaly is encouraging. The current 2007 core drilling program, which is very extensive, should give the Joint Venture sufficient data to complete a new geological model for the Tuzo kimberlite and to upgrade the Tuzo resource.”

De Beers retained Mineral Services, Vancouver as the consulting petrologist for the 2006 drill program. Micro-diamond processing was conducted at the Saskatchewan Research Council Geoanalytical Laboratory (SRC).

****

Located in Canada’s Northwest Territories, Gahcho Kué is the largest new diamond mine under development globally. The project consists of a cluster of three primary kimberlites with an indicated resource of approximately 14.4 million tonnes grading at 1.64 carats per tonne (approximately 23.6 million carats) and an inferred resource of approximately 17 million tonnes grading at 1.35 carats per tonne (approximately 22.9 million carats). Gahcho Kué is currently in the permitting and advanced exploration stage of development. At full production the Gahcho Kué diamond mine is expected to produce approximately 3 million carats a year over 15 years.

Mountain Province Diamonds is a joint venture partner with De Beers Canada Inc and Camphor Ventures. Mountain Province has a 44.1 percent interest in the Joint Venture; Camphor 4.9 percent; and De Beers 51 percent. Mountain Province recently announced that it has acquired 33.5 percent of Camphor Ventures, increasing the Company’s effective interest in the Joint Venture to approximately 46 percent. De Beers is the operator of the project and solely responsible for funding the project through to commercial production. By completing a bankable feasibility study De Beers has the right to increase its interest to 55 percent. Following construction and commissioning of a commercial mine, De Beers will have the right to increase its interest to 60 percent.

Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.

Forward-Looking Statements
This news release may contain forward-looking statements, within the meaning of the “safe-harbor” provision of the Private Securities Litigation Reform Act of 1995, regarding the Company’s business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside the control of the Company.
****

FOR FURTHER INFORMATION, PLEASE CONTACT:

Mountain Province Diamonds Inc.
Patrick Evans, President and CEO
Tel: 416-361-3562