De Beers in Canada

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MOUNTAIN province diamonds (MPD), an exploration company backed by Dermot Desmond, has had encouraging results from an extensive pre-feasibility study of its mining interests in Canada. It now expects the project to go ahead.

The study centred on the Gahcho Kue project, a joint venture with De Beers Canada, a subsidiary of the global mining conglomerate. De Beers has the right to earn up to a 60% interest in the 250,000-acre prospect by taking it to commercial production. The C$25m (€17.1m) pre-feasibility study was regarded as a key component of any decision to give the project the green light.

Mountain Province Diamond's share price spiked from C$2.15 to C$2.79 last week before settling back at C$2. Jan Vandersande, its president and chief executive, attributed the fall to a bout of profit-taking. De Beers owns 51% of the project and Mountain Province Diamonds has a 41% stake. The company also has an option on gold-mining prospects in Finland. Desmond owns 28% of the equity, which makes the stock worth following.

Mountain Province Diamonds Inc. To Be Listed On The American Stock Exchange

ONTARIO, California -- Mountain Province Diamonds Inc. (the Company) (TSX:MPV - News; OTCBB:MPVI - News) is pleased to announce that its application for listing on the American Stock Exchange (AMEX) has been approved. Trading of the Company's shares on the AMEX will start on Monday April 4. The new stock symbol will be "MDM".

Elizabeth J. Kirkwood, Chairman & CFO stated, "We are very pleased with the listing on AMEX and believe that shareholders will benefit from, among other things, improved liquidity in the stock and a higher overall profile for the Company."

Separately, De Beers is on schedule with the pre-feasibility/feasibility in-depth project study. The conclusion of the study is expected in June of 2005.

Mountain Province Diamonds Inc. is a company developing a diamond deposit in the NWT of Canada. The AK mining leases, located in the Northwest Territories of Canada are now held 44.1% by Mountain Province Diamonds Inc., 4.9% by Camphor Ventures (TSX VENTURE:CFV - News), and 51% by De Beers Canada Exploration Inc. As reported in its news release on March 7th, 1997, Mountain Province Diamonds Inc. and its partner entered into a joint agreement with De Beers Canada Exploration Inc. formerly known as Monopros Ltd. (a wholly owned subsidiary of De Beers Consolidated Mines Limited) under which De Beers Canada Exploration Inc. has the right to earn up to a 60% interest in the AK property by taking the project to commercial production. Carl G. Verley, P. Geol., a director, is the qualified person for the Company.

Investor Information:

Jan W. Vandersande, Ph.D., President & CEO, [phone]

De Beers says potential for new N.W.T. diamond mine
Last updated Jul 5 2005 08:51 AM MDT
CBC News
International diamond giant, De Beers, says it is now looking at building a second diamond mine in the Northwest Territories at Gahcho Kue, located about 100 kilometres northeast of Lutselk'e settlement. De Beers Canada says the results of a $25 million pre-feasibility study are "encouraging," and it's now drawing up a budget and timetable for getting development permits. While the company closed its exploration offices in Yellowknife, a few months ago, at the time, it said there would still be a focus on mining development in the territory.
FROM APRIL 21, 2005: De Beers no longer seeking new N.W.T. diamonds
De Beers went into the study looking to improve its estimate of ore available, which would determine the life of the mine. Those estimates haven't been made public. Gahcho Kue contains three diamond deposits that are located under Kennady Lake. It's unclear whether De Beers would process the ore from Gahcho Kue at its Snap Lake mine, located 80 kilometres southeast, or whether it would build a separate processing facility. De Beers owns Gahcho Kue jointly with Mountain Province Diamonds and Camphor Ventures.