Stornoway (SWY.TO) Hosts Québec Minister of Natural Resources at Montreal Press Event to Highlight Government-Industry Partnerships
TSX: SWY
LONGUEUIL, QC, Nov. 5, 2013 /CNW Telbec/ - Stornoway Diamond Corporation (TSX: SWY) today hosted a press event at its Montreal head office in the presence of Ms. Martine Ouellet, the Québec Minister of Natural Resources, Ms. Manon Cyr, the Mayor of Chibougamau, and Chief Richard Shecapio, Chief of the Cree Nation of Mistissini. The event was held to emphasize the close collaboration between Stornoway, Québec and the communities of the James Bay region on the development of the Route 167 Extension-Renard Mine Road and the new Monts Otish regional aerodrome. This work, being undertaken under a financing agreement between Stornoway and Québec, is successfully laying the groundwork for the development of the Renard Diamond Project, the first diamond mine in Québec.
Patrick Godin, Stornoway's Chief Operating Officer, commented: "The Renard Diamond Project is being done right. From the beginning, we determined that earning our licence to operate from the region's local communities and contributing to their economic development would be one of our top priorities. Our ability to achieve this has been greatly assisted by a strong partnership with government. We now have before us a diamond project with substantial potential revenue and mine life. Local communities and other stakeholders stand to benefit from the successful development of the Renard Project for generations. I would like to thank all levels of government for their collaboration, particularly Minister Ouellet, Mayor Cyr and Chief Shecapio who we are pleased to welcome today in Montreal."
Construction of the permanent road leading to the Renard Project began in February 2012 as the "Route 167 Extension". Under the terms of a November 2012 Framework Agreement and a December 2012 Financing Agreement between Stornoway and the Government of Québec, Québec is completing the first 143km of road (segments "A" and "B") as a 70km/hr two-lane gravel highway and Stornoway is undertaking the construction of a 50km/hr single lane mining road over the remaining 97km (segments "C" and "D" the "Renard Mine Road"). On September 3rd,2013 Stornoway announced that all four segments had been successively connected, allowing the first full transit of vehicles to the project site well ahead of schedule. On October 10thStornoway announced that owing to the expected completion of the Renard Mine Road approximately 10% below budget, an agreement had been reached with Québec to allow the balance of remaining funds to be applied to the construction of the Renard Mine aerodrome, which will serve to enhance public air transport in the Monts Otish region of Québec.
Upon construction, the Renard Diamond Project is expected to supply up to 2 million carats of high value, gem quality diamonds to the world rough diamond market, representing up to 3% of world supply in value terms.
About the Renard Diamond Project
The Renard Diamond Project is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. In November 2011, Stornoway released the results of a Feasibility Study at Renard, followed by an Optimization Study in January 2013, which highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. Probable Mineral Reserves as defined under National Instrument ("NI") 43-101 stand at 17.9 million carats. Total Indicated Mineral Resources, inclusive of the Mineral Reserve, stand at 27.1 million carats, with a further 16.9 million carats classified as Inferred Mineral Resources, and 25.7 to 47.8 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Readers are referred to the technical report dated December 29th, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project, and the technical report dated February 28th, 2013 in respect of the January 2013 Optimization Study, for further details and assumptions relating to the project.
Attachment: Maps, fact sheet
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway is a growth oriented company with a world class asset, in one of the world's best mining jurisdictions, in one of the world's great mining businesses.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Matt Manson"
Matt Manson
President and Chief Executive Officer
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