The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
NWT recovers from COVID setback, on pace to meet guidance North of 60 Mining News – July 16, 2021
The Gahcho Kué Mine in Northwest Territories produced 3.16 million carats of diamonds over the first half of 2021.
A 60.6-carat diamond recovered from Gahcho Kué in 2018.
Mountain Province Diamonds Inc. July 13 reported an increase in diamond production at Gahcho Kué during the second quarter, putting the Northwest Territories mine on pace to reach at least the 6.3-million-carat lower end of the company's guidance for 2021.
Gahcho Kué, which is owned by De Beers Canada Inc. (51%) and Mountain Province (49%), produced 1.76 million carats of diamonds during the second quarter, which is 14% higher than the second quarter of 2020 and a 27% jump over the first quarter.
Gahcho Kué's slow start in 2021 is due to an unplanned 22-day shutdown related to the February COVID-19 outbreak at the Northwest Territories mine.
An increase in operating days, ongoing recruitment drives for relief operators, better weather, and targeted improvements to the availability of equipment led to an improvement in mining rates.
As a result, by the mid-year mark Gahcho Kué had produced 3.16 million carats of diamonds.
"We're pleased to see production increasing in the second quarter, and expect the historically productive summer months to drive the recovery into Q3," said Mountain Province Diamonds President and CEO Stuart Brown. "With the first of the year complete and a sizeable stockpile of ore in front of the plant, we expect to hit our 2021 production guidance of 6,300,000 – 6,500,000 carats recovered."
In addition to improved production, the company reports strong sales of its share of diamonds.
During the quarter, Mountain Province sole 718,549 carats of diamonds for C$64.7 million (US$52.6 million), resulting in an average value of C$90 (US$73) per carat. This is compared to the 603,000 carats sold for C$54.2 million (US$42.7 million) during the first quarter, for an average value of C$89 million (US$71) per carat.
Mountain Province says that if you exclude the variations in the diamonds sold, second-quarter market prices were approximately 18% higher than those achieved in the first quarter.
"Producers are reporting strong demand and higher diamond prices at their sales which we have also seen with our latest offering," Brown said after the June sale. "Producers are reporting strong demand and higher diamond prices at their sales which we have also seen with our latest offering. We remain optimistic that as the global economy continues to recover that the current positive pricing and demand momentum throughout the diamond industry will continue and translate into improved margins for the company."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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