Mountain Province Diamonds Inc. (TSE: MPV) reported Tuesday the Gahcho Kue environmental impact review panel said that the Gahcho Kué Project environmental impact statement conforms to the terms set out by the panel.
"The panel's ruling represents a major milestone for our joint venture with De Beers. We look forward to the commencement of the environmental review which will clear the way for the permitting of what we expect will be Canada's next great diamond mine,” said Chief Executive Patrick Evans in a statement.
The 11,000 page environmental impact study was filed with the panel on Dec. 23, 2010 and De Beers Canada provided the final information required to the Panel on July 15, 2011.
Under the work plan and schedule issued by the panel, the environmental impact review process is expected to be done by July 2013.
"The Gahcho Kué Project offers new opportunities for economic growth in the Northwest Territories and ensure Canada continues to play an important part in the world diamond market," said De Beers Chief Executive Tony Guthrie.
"We look forward to advancing our proposed mine through the environmental impact review process and to working with regulators and participants in the process."
The Gahcho Kué environmental impact review was ordered by the Mackenzie Valley Environmental Impact Review Board, which has appointed the panel to conduct the review for an open-pit diamond mine at Kennady Lake in Canada's Northwest Territories.
It is divided into start-up, analytical, hearing and decision phases. Currently, the review is in the analytical phase, Mountain Province Diamonds said.
The Gahcho Kué Project is situated at Kennady Lake, about 280 kilometres northeast of Yellowknife and 90 kilometres southeast of De Beers Canada's wholly owned Snap Lake Mine.
The proposed mine plan calls for recovery of 4.5 million carats annually. Three kimberlite pipes, while Hearne and Tuzo, would be mined via an open pit mining method over an 11 year mine life.
The Gahcho Kué diamond project at Kennady Lake would be the fourth diamond mine developed in Canada's Northwest Territories.