Gahcho Ku diamond mine co-owner welcomes influx of Snap Lake workers

One of the owners of N.W.T.'sGahcho Ku diamond project says scooping up about 100 employees from the closing Snap Lake minewill have a "positive impact"as the project races towardfirst production in 2016.

Gahcho Ku is hiring more staff for what it calls "operational readiness." According toPatrick Evans, CEO of Mountain Province Diamonds,employees laid off from Snap Lake, just 90 kilometres away, are turning out to be ideal candidates.

"It's going to have quite a positive impact," said Evans.

"We are able to get fully trained, inducted, and experienced employees."

Evans said41 Snap Lake employees have already transferred to the project, and another 60 will follow next year.

Mountain Province Diamondsowns 49 per cent ofGahchoKu. De Beers Canada owns the other 51 per cent.

He saidthe shutdownof the Snap Lake mine, which is solelyowned by De Beers, has not dampened expectations at Gahcho Ku.

"No, they're completely different mines," he said.

"Snap Lake is a very difficult underground mine, completely different to Gahcho Ku, which is an open pit mine.There really aren't any, if you like, mining lessons that have been learned at Snap Lake that are going to be beneficial to Gahcho Ku."

Evans said as of the end of November, construction of Gahcho Ku is more than 80 per centcomplete and on budget.

He saiddespite a 14 per cent decline in diamond prices so far this year, the mine will still be profitable due to a low Canadian dollar and low cost of diesel.

"The operating cost items are down quite significantly," Evans said.

"Diamondprices are down somewhat and on balance we expect the operating margins, the profitability if you like, of Gahcho Kuis going to remain strong."

First production at the mineis scheduled for the second half of 2016.