Snowdrift (Apr 21/03) - De Beers and its joint venture partners have shelved further exploration of the Gahcho Kue diamond project for at least a year.

The property is held by De Beers (51 per cent), Mountain Province Diamonds (44.1 per cent) and Camphor Ventures (4.9 per cent).

It is located about 100 kilometres northeast of Lutsel K'e.

Preliminary studies in mid-2000 projected costs of about $600 million to develop a mine at Gahcho Kue.

Lower diamond values and the rising Canadian dollar have now pushed the rate of return below the partners' 15 per cent target, said Mountain Province in a prepared release.

De Beers has spent a reported $10 million on the Gahcho Kue project to date.

Further feasibility studies on the mine are now on hold pending another economic review next year, said the company.