05:05 PM EDT, 06/18/2020 (MT Newswires) -- Mountain Province Diamonds Inc. (TSX: MPVD) after trade Thursday announced an update of its exploration programs for the Gahcho Kue Joint Venture, and for the company's 100%-held Kennady North Project. It noted the winter programs were planned to run from mid-February through May but were terminated in early April after declaration of the COVID-19 pandemic in March. Personnel for both programs reported no incidence of the virus during the winter operations, or during the 14-day self-quarantine period following completion of the programs. A summary of activities that were completed before termination of the winter programs is provided.

Earlier Thursday, MPVD lowered 2020 guidance for the Gahcho Kue mine to take into account the impacts of the COVID-19 pandemic. After withdrawing guidance in March, Mountain Province Diamonds said it now expects 37 million to 39 million total tonnes mined (ore and waste) for the year, down from previous guidance of 42 million to 43 million tonnes. The company also forecasts 6.3 million to 6.4 million carats recovered, compared with previous guidance of 6.75 million to 6.95 million carats.

All in cash costs are projected at $100 to $110 per tonne treated, reduced from $105 to $115 per tonne treated. Per carat recovered, all in cash costs are expected to be $50 to $55, remaining unchanged from previous guidance.

Guidance of 3.3 million to 3.4 million ore tonnes mined, as well as 3.3 million to 3.4 million ore tonnes treated, both remain unchanged as well. Meanwhile, sustaining capital expenditure was reduced to $21 million, from the previous forecast of $26.5 million.

"As a result of the all the interruptions and subsequent changes since the start of the pandemic, our total 2020 production forecast has been lowered by approximately 400K carats whilst maintaining or slightly lowering our cost guidance for full year 2020," said Stuart Brown, president and CEO of Mountain Province Diamonds. "The new forecast is the result of a tremendous amount of effort to maintain production at the mine ... We anticipate the diamond market will continue to open up over the coming months and we look forward to resuming normal sales later in the second half of the year."

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