An independent feasibility study of the Gahcho Kue diamond project in the Northwest Territories province of Canada has determined that the project is economically viable, Mountain Province Diamonds announced last week.

Mountain Province, which owns Gahcho Kue in tandem with De Beers, reported that the mineral reserve estimate of the project – which tested three different kimberlite pipes, indicated an average grade of 1.57 carats of diamonds per ton of ore.

The study also projected a mine life of 11 years, during which a total of some 49 million carats of rough diamonds would be recovered, or an average of about 4.45 million carats per year during the site's production life.

Patrick Evans, CEO of the Mountain Province diamond company stated that the feasibility study delivered an "economically viable, technically credible and environmentally sound development plan for the Gahcho Kue project."

Evans added that the company would now concentrate on completing the required environmental assessment, which it expects to file with the Mackenzie Valley Environment Review Board by the end of 2010.