Mountain Province Diamonds provides exploration update on southwest corridor at the Gahcho Kué Mine

Aerial view of the Gahcho Kue Diamond Mine and the processing plant in operation. — Photo courtesy Mountain Province Diamonds Inc.

Jan. 17, 2018 /CNW/ - Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX and NASDAQ: MPVD) today announces an update on the exploration program currently ongoing in the Southwest Corridor area of the Gahcho Kué mine site. The Southwest Corridor area lies between the 5034 and Hearne pipes, and in the course of mining activity has been recognized as containing diamondiferous kimberlite that is not included in the project resource statements. The current exploration program has included geophysical surveys, as well as exploration drilling which remains ongoing.

A geophysical program was carried out in the fall of 2017. This program comprised a ground gravity survey centred on the Southwest Corridor area as well as other nearby areas, including between the Tuzo and Tesla pipes. Approximately 70% of the ground gravity survey was completed in the fall, and has identified a potential target in the corridor between Tesla and Tuzo. The remaining 30% of the survey will be completed in February, including infill stations to complete the assessment of this new target. As well, the geophysical program included an airborne magnetics and electromagnetics survey spanning the full lease area around the mine, which has detected a possible extension of the Tesla pipe to the southwest.

A 17 hole exploration drill program in the Southwest Corridor, based on a 50 metre by 50 metre spacing plan, was commenced in November 2017. Drilling remains ongoing and is expected to continue until mid-March. Six holes have been completed to date.

Based on core logging, the kimberlitic zone is comprised of kimberlite and breccias with variable granite content. See the appendices to the news release posted on the Company's website for drill plots and additional information regarding intercept composition.

Said David Whittle, the Company's Interim President and Chief Executive Officer, "It is encouraging to have intercepted kimberlite in all six of the exploration holes drilled to date. This is particularly notable given much of the Southwest Corridor is already scheduled under the mine plan to be mined as waste rock. We're also pleased with the identification of a potential new target in the Tesla-Tuzo corridor."

As noted, the ground gravity survey and the exploration drilling are expected to be completed in mid-March. A subsequent drill program is anticipated to drill test the ground gravity target in the corridor between Tesla and Tuzo, and also to drill test the corridor between 5034 and Tuzo. The North Pipe kimberlite, which lies within that corridor and comprises part of the 5034 inferred resources, is open in all directions for expansion. Additionally, analysis of the results of the current drill program is expected to be completed in mid 2018, with the goal of estimating a resource for the Southwest Corridor area for eventual incorporation into the Gahcho Kué mine plan.

Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. Gahcho Kué is the world's largest new diamond mine, consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12 year mine plan.