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our PRAYERS GO TO THE CCAC and delisting--let this hole in the ground pass with dignity
operations in Canada, halted due to reorg pending
VANCOUVER/TORONTO (Reuters) - Dominion Diamond Corp (DDC.TO: Quote) DDC.N and fellow Canadian diamond miner Stornoway Diamond Corp SWY.TO have held talks about a potential merger in recent months, people familiar with the matter said on Monday.
World No. 3 diamond miner Dominion, target of a $1.1 billion bid by U.S. billionaire Dennis Washington, and Stornoway, a small miner with a diamond mine in Quebec, declined to comment. The people declined to be named as the discussions are private.
One of the people said the talks were still ongoing.
in french, positive new article on Stornoway.
http://affaires.lapresse.ca/economie/energie-et-ressources/201608/26/01-5014467-mine-renard-le-diamant-sort-de-terre.php
Stornoway (SWY.TO) Announces Closing of $10 Million Flow-Through Financing for Renard Resource Expansion Drill Program
MONTREAL, QUEBEC--(Marketwired - Dec. 3, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the closing of its previously announced bought deal private placement financing of flow-through common shares ("Flow-Through Shares"), for aggregate gross proceeds of $10,051,000 (the "Offering").
Dundee Securities Ltd., on behalf of a syndicate of underwriters, including Scotia Captial Inc. and Desjardins Securities Inc. (collectively, the "Underwriters"), sold 10,580,000 Flow-Through Shares, including 1,380,000 Flow-Through Shares issued pursuant to the exercise in full of the over-allotment option by the Underwriters at an issue price of $0.95 per Flow-Through Share. The Flow-Through Shares issued pursuant to the Offering will be subject to a four-month hold period expiring April 4, 2014.
In connection with the Offering, the Underwriters received a cash fee equal to 5% of the gross proceeds of the Offering and 529,000 compensation warrants equal to 5% of the number of Flow-Through Shares sold pursuant to the Offering, each compensation warrant exercisable to purchase one common share of Stornoway at a price per share of $0.95 for a period of 24 months following closing.
Stornoway has agreed that expenditures incurred with proceeds from the Offering will constitute Canadian exploration expenses (as defined in the Income Tax Act), will be incurred prior to December 31, 2014 and will be renounced to the subscribers.
The Flow-Through Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
Stornoway (TSX:SWY) Announces Flow-Through Financing for Renard Resource Expansion Drill Program
LONGUEUIL, QUEBEC--(Marketwired - Nov. 13, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has entered into an agreement with Dundee Securities Ltd. as lead underwriter, together with a syndicate including Scotiabank and Desjardins Securities Inc. (collectively, the "Underwriters"), for a private placement financing on a bought deal basis of 5,265,000 flow-through common shares ("Flow-Through Shares") at a price of $0.95 per Flow-Through Share for gross proceeds of $5,001,750 (the "Offering"). In addition, Stornoway has granted the Underwriters the option to purchase up to an additional 789,750 Flow-Through Shares to cover over-allotments (the "Over-Allotment Option"). The Underwriters may exercise the Over-Allotment Option at the issue price up to 48 hours prior to closing.
The Flow-Through Shares issued pursuant to the Offering will be subject to a four-month hold period. In the event that the Over-Allotment Option is exercised in its entirety, the gross proceeds of the Offering will be $5,752,013. Stornoway has agreed that expenditures incurred with proceeds from the Offering will constitute Canadian exploration expense ("CEE") (as defined in the Income Tax Act) and will be renounced to the subscribers.
Matt Manson, Stornoway's President and CEO commented: "The Renard Diamond Project possesses extensive resource upside outside of the current Mineral Reserve, characterized as either Inferred Mineral Resource or 'Target for Further Exploration'. The financing announced today allows us to plan for a resource expansion and conversion program in 2014 targeted principally on Renard 2 and designed to aggressively test the depth extent of the Renard kimberlites. This program will run separate from, and complementary to, the project construction capital program scheduled for 2014 and 2015 following the completion of principal project financing."
Closing of the Offering is anticipated to occur on or before December 3, 2013 and is subject to receipt of applicable regulatory approvals, including approval of the Toronto Stock Exchange.
The Flow-Through Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
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.
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
Matt Manson, President and Chief Executive Officer
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
STORNOWAY (SWY.TO) TO PROCEED WITH LIQUEFIED NATURAL GAS (LNG) POWER
PLANT FOR RENARD DIAMOND PROJECT
Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the results of a recent feasibility study on the viability of a Liquefied Natural Gas (“LNG”) fuelled power plant for the Renard Diamond Project. The study was authored by SNC-Lavalin Inc. and AMEC America Ltd. under the Renard Project EPCM joint venture, and demonstrates substantial benefits to the project in terms of annual operating cost and environmental emissions compared to the currently planned diesel gen-set option. Highlights of the study are as follows:
•Annual operating cost reductions of between $8 million and $10 million over the initial 11 year mine life, representing a life of mine operating cost saving of $89 million, or 6.6%.
•Incremental capital cost of only $2.6 million over the cost of diesel gen-sets, representing a net payback of 4 months.
•An estimated reduction in greenhouse gas emissions of 43%, with significant reductions in NO2 and SO2.
•Stable LNG local supply market based on existing commercial distribution network within Québec.
Matt Manson, President and CEO, commented: “Since the release of the Renard Diamond Project Feasibility Study in November 2011 and the subsequent Optimization Study in January 2013, we have been investigating more efficient alternatives for power supply at the project compared to the traditional diesel option contained within the current execution plan. A July 2012 Hydro-Québec feasibility study into a powerline for the project demonstrated only a marginal economic benefit of using grid power owing to the high cost for powerline construction. The LNG option now provides us with a much more attractive way forward, with off-the-shelf technology, a positive long-term supply outlook, a much smaller environmental footprint and immediate economic benefits for the project through substantially reduced operating costs. This option is made possible to us because, with an all-season road, we are able to receive regular shipments of liquefied gas from the existing commercial distribution network in Québec, without the need for expensive high-capacity on-site storage facilities. The LNG study has been completed in time to have it incorporated into the final project execution plan prior to the planned commencement of project construction in 2014.”
The Renard LNG power plant will comprise seven 2.1MW rated gas gen-sets, providing sufficient power generation capacity for the project’s normal operating specification of 9.5MW, which represents five gen-sets operating at a planned 92% efficiency. Onsite gas storage will be sufficient for 10 days operation, with new supplies delivered daily by cryogenic tanker truck from the existing Gaz Metro Liquefaction plant and distribution center in Montréal. In addition to power generation, the LNG will be used for heating of buildings and the underground mine, removing the requirement for onsite propane. A smaller quantity of diesel will continue to be used at site for construction activities and mobile mining equipment.
Based on the operating parameters contained within the January 2013 Renard Optimization Study, the incremental benefits of the LNG option over the existing diesel gen-set plan are as follows:
Table 1: LNG Feasibility Study Results and Project Impact1
January 2013
Optimization Study,
Diesel January 2013
Optimization with
LNG Power Option
Operating Cost Parameters2 Unit Power Cost (C$/kWh) $0.299 $0.188 (-37%)
Unit Operating Cost (C$/tonne)3 $57.63 $53.84 (-7%)
Life of Mine Operating Cost (C$M)3 $1,352 $1,263 (-7%)
Capital Cost Parameters2 Initial Capital Cost (C$M) $752.1 $754.0 (+0.3%)
Escalation Allowance on Initial Capital (C$M) $45.1 $45.8 (+1.6%)
Life of Mine Capital Cost (C$M)4 $1,013 $1,010 (-0.3%)
Commodity Consumption Annual Diesel Consumption (million liters) 27.5 5.9 (-79%)
Annual LNG Consumption (m3/annum) n/a 41,700
Annual Propane Consumption (m3/annum) 3,500 n/a
Notes
•Based on the 11 year reserve-based mine life (17.9 mcarats) contained within the January 2013 Optimization Study, with a normal operating load of 9.49MW and an oil price assumption of US$95/barrel.
•The January 2013 Optimization Study costs, under either the diesel or LNG power options, are expressed in October 2012 terms.
•Excludes capitalized preproduction costs.
•Includes all initial capital, escalation on initial capital, sustaining and deferred capital and contingencies.
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 47.8million 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.
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
Stornoway (CSWY.TO) to Commence Early Construction of Renard Mine Airport
Made Possible by the Expected Completion of the Renard Mine Road Ahead of Schedule and Below Budget
Made Possible by the Expected Completion of the Renard Mine Road Ahead of Schedule and Below Budget
MONTREAL, QUEBEC--(Marketwired - Oct. 10, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that owing to the expected completion of the Renard Mine Road significantly below budget, an agreement has been reached with the Government of Québec to allow the residual amount of the financing facility established for the construction of the road to be utilized for the immediate construction of the Renard Mine Airport. The early construction of permanent airstrip facilities close to the Renard Diamond Project will better assist Stornoway in mitigating construction risk at the Renard Diamond Project during 2014 and 2015, and will create a new regional aerodrome enhancing air transport in the Monts Otish region of Québec.
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 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.
The cost for the Renard Mine Road was originally estimated at $77 million, including a 15% contingency. Under the terms of a December 2012 Financing Agreement between Stornoway and Québec, this cost is being funded through a credit facility provided to Stornoway bearing interest at the rate of 3.35% and amortized over a period of 15 years. The schedule of repayment of this loan is based on the financing and construction schedule of the Renard Diamond Project.
Stornoway is now forecasting the cost to complete the Renard Mine Road at $70 million, approximately 10% below budget. Stornoway and Québec have agreed that the balance of funds within the base credit facility of $77 million may be drawn for the construction of the Renard Mine Airport. The airport's capital cost estimate contained within the January 2013 Renard Optimization Study was $15.5 million, including all site infrastructure and operating facilities. Given the competitive cost environment currently existing in Québec for major capital projects, and the on-site presence of Stornoway's contractors, fuel and equipment already mobilized for road construction, Stornoway has estimated that sufficient funds will be available within the road credit facility for the completion of all major civil works at the airport, well within budget and schedule. Work will commence immediately
In presence of Martine Ouellet, Natural Resources Minister -
Stornoway (SWY.TO) officially opens road leading to Quebec's first diamond mine
MONTREAL , Oct. 3, 2013 /CNW Telbec/ - Stornoway Diamonds, along with Quebec's Natural Resources Minister Martine Ouellet , invites journalists to a news conference on Monday, October 7 , for the inauguration of the extension of Highway 167 and the Renard mine road, which will enable construction vehicles to travel from Témiscamie (km zero) to the Renard diamond mine site, 240 km to the north. The completion of this road is an important milestone that will enable Stornoway to begin construction of the "Renard" diamond mine, the first such mine in Quebec .
For this activity, Stornoway is offering journalists a unique opportunity to visit the site of the Renard diamond deposit, located some 275 km north of the Cree community of Mistissini and 350 km north of Chibougamau , in the James Bay region of north-central Quebec . During the visit, you will be able to speak with Patrick Godin , Stornoway's chief operating officer, about progress on the diamond mine project, the diamond industry and its economic importance, Stornoway's relations with communities and the labour challenges that lie ahead.
Stornoway is especially proud to inaugurate this major regional infrastructure, which will open up the territory and provide access to this vast region, rich in both breathtaking landscapes and natural resources.
DATEBOOK
WHO: Inauguration of extension of Hwy 167 and Renard mine road and tour of Stornoway's Renard project site
WHO:
Martine Ouellet, Natural Resources Minister
Luc Ferland, MNA for Ungava and parliamentary assistant to the Natural Resources Minister (northern affairs)
Richard Shecapio, chief of the Mistissini Cree Nation
Manon Cyr, mayor of Chibougamau
Patrick Godin, chief operating officer, Stornoway Diamonds
WHEN: Monday, October 7, 2013
SCHEDULE:
Time Activity
6:40 a.m. Departure of flight from Saint-Hubert airport to Chibougamau
10 a.m. News conference and inauguration of the road at km zero of the Mont Otish road
11 a.m. Transport by helicopter to Renard mine site
12:30 p.m. Tour of Renard mine site
14:00 p.m. Flyover the Renard mine site and road
6 p.m. Arrival, Saint-Hubert airport
RSVP to Amélie Cliche (acliche@national.ca) by 5 pm . on Thursday, October 3 .
Stornoway (SWY.TO)Arranges $20M Bridge Facility for Renard Diamond Project
MONTREAL, QUEBEC--(Marketwired - Oct. 2, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has entered into an unsecured non-revolving bridge credit facility of up to $20 million with Ressources Québec, a subsidiary of Investissement Québec, Stornoway's largest shareholder, through its indirect wholly-owned subsidiary Diaquem Inc. (the "Lender"). The proceeds of the facility will be used in connection with the development of the Renard Diamond Project and for general corporate purposes, including costs relating to Stornoway's ongoing project financing activities.
Matt Manson, Stornoway's President and CEO, stated: "This credit facility is intended to provide Stornoway with good funding flexibility as we pursue our project financing activities and begin the ramp-up to the capital programs anticipated at Renard in 2014 and 2015. We are particularly pleased to acknowledge the continued and constructive support of our major shareholder, Investissement Québec, in the development of this important new Québec mining project. With major regulatory authorizations in hand and the Renard Mine Road now open for construction traffic, Stornoway's primary objective is the timely conclusion of our principal project financing arrangements."
Under the facility, the Lender will loan up to an aggregate amount of $20 million to Stornoway in two tranches, an initial tranche of $10 million which is expected to be made available on or about October 2, 2013 and a second tranche of up to $10 million, each of which will bear interest at 12% per annum and be repayable on March 28, 2014. The Lender has the discretion to determine whether to fund the second tranche and, if so, the specific amount. A commitment fee equal to 1% of the amount funded under each tranche is payable by Stornoway.
Stornoway will have the right to satisfy up to 50% of the interest payable on the aggregate of the amounts loaned to Stornoway pursuant to the facility by issuing to the Lender common shares of Stornoway at an issue price of 95% of the volume weighted average price of such shares as of the interest payment date, while the remaining portion of interest payable on such amounts will be paid in cash. The credit agreement contains additional representations, covenants, commitments and funding conditions customary for a facility of this nature.
Annual General Meeting
Stornoway's Annual General Meeting of Shareholders will be held at Hotel Le Crystal Montreal, Crescent Room, 1100 de la Montagne Street, Montreal, Québec, Canada, on Wednesday, October 23, 2013, at 4:00 p.m.
Stornoway Diamond Corporation (SWY.TO) First Vehicle Arrives at Renard Project Site via New Permanent Road
Renard Mine Road opens ahead of Schedule
Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the opening of the Renard Mine Road to all-season vehicle traffic for the first time. All four road construction segments “A” to “D” of the Renard Mine Road and the Route 167 Extension that are currently under construction by Stornoway and the Québec Ministère des Transports (“MTQ”) have now been connected, allowing the full transit of construction vehicles from Temiscamie, at the end of the existing public highway, to the Renard project site 240 km to the north.
Matt Manson, President and CEO commented: “With today’s news, it is now possible to drive directly to the Renard Project by permanent road. The connection of each construction segment has been achieved two months earlier than expected, and well ahead of the 4th Quarter, 2013 schedule established when construction of Stornoway’s portion of the road began in April. We are also forecasting final completion of the Renard Mine Road within budget. These achievements have been made possible by the strong performance of our construction contractors, all of whom are Cree or locally operated businesses, and the professionalism of Stornoway’s construction management team based in Longueuil, Québec.”
Matt Manson continued: “The Renard Project is now permitted, connected by road, and ready to build. The project’s large Mineral Resource, and its extensive exploration upside, offers a project producing up to 2 million carats of diamonds per year and projected annual revenues of up to C$450m per year within its initial 11 year mine life. Renard is an outstanding, and unique, new diamond development project. Project financing discussions with lenders and prospective investors are ongoing and progressing well, with a view to first construction mobilization prior to the end of 2013.”
Construction of the road that will provide all-season vehicle access to the Renard Project began in February 2012 as the “Route 167 Extension”. Under the terms of the November 2012 Framework Agreement between Stornoway and the Government of Québec, Québec is to complete 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”) as the “Renard Mine Road”. The cost of the Renard Mine Road was initially estimated at $77 million, including a 15% contingency. Under the terms of the December 2012 Financing Agreement between Stornoway and Québec, this cost is being funded through a credit facility provided to Stornoway bearing interest at the rate of 3.35% and amortized over a period of 15 years. In order to provide additional contingency, Stornoway is entitled to draw an additional $7.7 million bearing interest at the rate of 6.3%, for a total facility of up to $84.7 million. The schedule of repayment of these loans will be based on the financing and construction schedule of the Renard Diamond Project. To-date, Stornoway has drawn $61.4 million from the credit facility, and is forecasting a final cost to complete well within the base budget.
The Renard Mine Road has opened initially for construction traffic only, and is not yet open for public use. Overall completion stands at 50%. To date, all temporary bridges have been completed, 9 of 16 permanent bridges have been installed, more than 80% of all culverts have been installed, and approximately 1.6 million tonnes of gravel has been extracted from 7 borrow pits.
Throughout the road construction process, Stornoway has prioritized the granting of contracts to businesses located in the James Bay Region of Québec, in particular those associated with the Crees of Eeyou Istchee. Contractor productivity throughout has been excellent, and the greatest factor in Stornoway’s ability to advance the road so efficiently. Stornoway’s contractors include:
•The Eskan Company, the Development Corporation of the Cree Nation of Mistissini, and Swallow-Fournier inc. for road construction;
•Nordic Structures Bois, a wholly-owned subsidiary of Chantiers Chibougamau Ltée, for bridge construction;
•Jos Ste-Croix & Fils Ltée of Chibougamau for construction management;
•The Eenatuk Forestry Corporation for tree clearing;
•The Kiskinchiish Corporation for camp services and catering; and
•Petronor, a wholly owned Cree enterprise, for fuel supply.
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 47.8million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. 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.
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
Stornoway (SWY.TO) Provides Update on Exploration Joint Ventures
MONTREAL, QUÉBEC--(Marketwired - Aug. 7, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide an update on recent activities at certain non-core exploration properties under option to North Arrow Minerals Inc. ("North Arrow"; see Stornoway press release dated March 14, 2013). The option agreement allows North Arrow to acquire an 80% interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects by fully funding and completing a defined exploration program specific to each project. Drill programs have now been completed for the Pikoo and Temiskaming projects, with the following results.
Pikoo Project, Saskatchewan
During June and July, North Arrow completed ten drill holes (2,002 meters) at the Pikoo project, located approximately 120 kilometres east of La Ronge, Saskatchewan. Drilling targeted two separate areas with previously un-sourced kimberlite indicator trains. Hypabyssal kimberlite was intersected in nine of ten drill holes.
The most significant discovery was in the "South" Pikoo area where target PK150 returned kimberlite intersections from three holes: 28.89 meters (hole DDH13PK06 at a -59° inclination), 22.12 meters (DDH 13PK08 at -49°) and 20.12 meters (DDH 13PK09 at -60°). The PK150 kimberlite is interpreted as a near vertical body with a drill defined strike length of at least 75 meters. It is described as a dark grey hypabyssal kimberlite containing abundant olivine as well as common ilmenite, common garnets (purple to orange) and less common chrome diopside. Internal country rock dilution is estimated as less than 5% and mantle nodules ranging up to 10 cm have been observed.
In the "North" Pikoo area, five drill holes tested an east-west trending target over a 1.1 km strike length. The drill holes encountered between one and six individual kimberlite dykes ranging from 3 cm to 59 cm in width, interpreted to be vertical to steeply south dipping. Surficial Indicator mineral anomalies suggest the dyke system extends over a significantly greater strike length than tested by the current drill program.
The Pikoo project drilling program has confirmed the existence of a new kimberlite field within the Sask Craton of northern Saskatchewan, as suggested by previous geochemical sampling. Kimberlite intersections from drill holes that tested PK150 will be submitted for microdiamond analyses. Results from this work are expected in approximately eight weeks.
Temiskaming Project, Ontario
During March and April of this year, North Arrow completed five drill holes (547 m) on four geophysical targets located up ice from an un-sourced kimberlite indicator mineral train. Kimberlite was not intersected in any of the drill holes.
Terms of Option Agreement
Under the terms of the option agreement, North Arrow (through assignment by 0954506 B.C. Ltd.) has the right to earn an 80% interest in each of the Temiskaming, Pikoo and Qilalugaq Projects by completing specified option work programs in each area over a specified period of time. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80% interest in the project, Stornoway has a one-time right (the "Back-in Right") to buy-back a 20% interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work program. Upon earn-in by North Arrow, North Arrow and Stornoway will form a joint venture for the purpose of further potential exploration of each project, and the interests will be 80% North Arrow and 20% Stornoway, unless Stornoway exercises the Back-In Right, in which case the interests will be 60% North Arrow and 40% Stornoway.
Following the completion of the Temiskaming work program, Stornoway informed North Arrow that it did not intend to exercise its Back-In Right, such that the interests in the Temiskaning Project now stand at 80% North Arrow and 20% Stornoway. The option work program at Pikoo is expected to be completed upon receipt of microdiamond analysis from the kimberlite intersections. Work at the Qilalugaq Project is not expected to be initiated until 2014.
Qualified Persons
The 2013 Pikoo drilling program was conducted under the direction and supervision of Barbara Kupsch, P.Geol., project manager for the Pikoo Project. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101. Mr. Hopkins has reviewed and approved the contents of this release.
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
Stornoway (SWY.TO) Announces Updated Renard Mineral Resource Estimate
Successful Conversion of Renard 65 to Indicated Mineral Resource
LONGUEUIL, QUEBEC--(Marketwired - Jul 23, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to announce an updated Mineral Resource estimate by GeoStrat Consulting Services Inc. for the Renard Diamond Project, Stornoway's 100% owned flagship development project located in north-central Quebec. The update follows the successful completion of the Renard 65 bulk sample earlier in the year and, additionally, incorporates refinements to the geological models and diamond content estimates of certain other kimberlites made since the project's previous Mineral Resource statement was published in January 2011. Highlights of the new estimate are as follows:
•A total Indicated Mineral Resource of 27.1 million carats representing an increase of 14.0% over the previous estimate;
•The successful conversion of 2.3 million carats (7.86 million tonnes at 29.3 carats per hundred tonnes) of near-surface Renard 65 Inferred Mineral Resources to Indicated Mineral Resources, representing kimberlite amenable to open-pit mining to 150m depth;
•A total Inferred Mineral Resource of 16.9 million carats, a 3.5% decrease compared to previous estimate, as increased estimates of Inferred Mineral Resources at Renard 2, 4 and 9 partially offset the conversion of material from the Inferred to the Indicated category at Renard 65.
•An additional 25.7 to 47.8 million carats (54.6 to 74.9 million tonnes) have been designated a "Target for Further Exploration" to 775 m depth, below which each kimberlite remains open.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.
Matt Manson, Stornoway's President and CEO, commented: "We are pleased to be able to confirm the successful conversion of a large part of the Renard 65 kimberlite to the Indicated Resource category, for its inclusion in the Renard mine plan. This open pit ore will allow us to utilize the designed expansion capacity of our plant from 6,000 to 7,000 tonnes per day, and is expected to provide for an extended reserve tail for the project. At the same time, we have been able to convert into new Inferred Resources the large quantity of diamonds contained within the brecciated country rock that is entrained within and around the Renard 2 kimberlite. These diamonds are derived primarily from the abundant hypabyssal kimberlite which has been drilled and sampled repeatedly within the Renard 2 eruptive envelope, but which has never been incorporated into previous resource estimates. A large part of this material is expected to be mined as waste or mining dilution, and has previously been designated a zero grade in our production schedule. Both of these resource additions offer near term production gains for the project." Matt Manson continued: "The updated Mineral Resource estimate has re-confirmed the very large upside of 25.7 to 47.8 million carats outside the formal Indicated and Inferred categories at Renard. Taken together, Renard represents one of the world's most important new sources of high value diamonds."
Renard Diamond Project - July 2013 Mineral Resource Estimate
The updated Mineral Resource estimate was completed in accordance with the Canadian Institute of Mining (CIM) Definition Standards for Mineral Resources and Mineral Reserves as incorporated by National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. It comprises the integration of kimberlite volumes, density, petrology and diamond content data derived from 88,887m of diamond drilling (457 holes), 6,151m of large diameter reverse circulation (RC) drilling (36 holes), 18.3t of samples submitted for microdiamond analysis, 600.8cts of diamonds (6,457 stones) recovered from RC drilling and 9,575.0cts of diamonds (92,940 stones) recovered from surface trenching and underground bulk sampling. The estimate also incorporates information derived from approximately 135 drill holes, 37 surface test pits and 12 trenches undertaken for geotechnical and hydrogeological purposes.
Table 1: Total NI 43-101 Mineral Resource Estimate(1), (2), (3)
INDICATED RESOURCE
KIMBERLITE CONTAINED
CARATS
(millions) TONNES
(millions) GRADE
(cpht)
(4), (5)
Renard 2 Total 18.66 n/a 18.58 n/a 100 n/a
Renard 2 (note 6) 18.38 +1.6 % 17.71 +0.4 % 104 +1.2 %
Renard 2 CRB-2a 0.28 n/a 0.87 n/a 32 n/a
Renard 3 1.82 -1.7 % 1.76 +0.5 % 103 -2.2 %
Renard 4 4.31 +13.0 % 7.25 -- 60 +13.1 %
Renard 65 2.3 n/a 7.87 n/a 29 n/a
Renard 9 -- -- -- -- -- --
Lynx -- -- -- -- -- --
Hibou -- -- -- -- -- --
Total Indicated 27.09 +14.0 % 35.45 +33.1 % 76.4 -14.3 %
INFERRED RESOURCE
KIMBERLITE CONTAINED
CARATS
(millions) TONNES
(millions) GRADE
(cpht)
(4), (5)
Renard 2 Total 7.47 n/a 11.77 n/a 64 n/a
Renard 2 (note 6) 6.23 +1.6 % 5.23 +0.4 % 119 +1.2 %
Renard 2 CRB 1.24 n/a 6.54 n/a 19 n/a
Renard 3 0.61 -4.2 % 0.54 +0.2 % 112 -4.5 %
Renard 4 2.37 +13.7 % 4.75 -0.1 % 50 +13.7 %
Renard 65 1.18 -68.3 % 4.93 -61.9 % 24 -16.8 %
Renard 9 3.04 +13.2 % 5.7 +0.1 % 53 +13.2 %
Lynx 1.92 -- 1.8 -- 107 --
Hibou 0.26 -- 0.18 -- 144 --
Total Inferred 16.85 -3.5 % 29.67 -4.6 % 57 +1.2 %
(1) Resource categories follow the CIM Standards for Mineral Resources and Mineral Reserves.
(2) Totals may not add due to rounding.
(3) Changes from January 2011 Mineral Resource estimate shown in italics.
(4) Carats per hundred tonnes.
(5) Estimated at a +1 DTC sieve size cut-off.
(6) Excludes discrete more dilute kimberlite facies not previously incorporated into January 2011 resource. Provided to facilitate more direct comparison with 2011 Mineral Resource estimate.
n/a = not applicable or no direct comparison
In addition to incorporating the results of the Renard 65 bulk sampling completed in February 2013, the new Mineral Resource estimate incorporates the results of recent geotechnical and hydrogeological drilling at Renard, where such drilling intersected the ore bodies, and utilizes a refined method for calculating country rock dilution within each kimberlite. The grade contribution provided by the abundant occurrences of hypabyssal kimberlite observed within each body's eruptive envelope has also been re-assessed. This has resulted in changes to the diamond content estimates of Renard 2, 3, 4 and 9, and a substantial quantity of Country Rock Breccia ("CRB") within Renard 2 being added to the Mineral Resource Estimate, including 0.87 million tonnes at 32 cpht (0.28 million carats) in the Indicated category and 6.54 million tonnes at 19 cpht (1.24 million carats) in the Inferred category. In the previous Mineral Resource Estimate, this CRB material was assigned a zero grade, and is treated within the Renard underground mine plan as waste or mining dilution.
Material classified as a Target for Further Exploration (herein 'TFFE', and formerly known as "Potential Mineral Deposit") represents an estimate of potential upside that can be reasonably assumed for each body given the nature and grade of material within the mineral resource. The TFFE within the Renard kimberlite pipes has been determined by projecting kimberlite volumes from the base of the Inferred Resource to a depth of approximately 775m below surface, representing the base of current drilling as established at Renard 4. In the case of the Lynx and Hibou dykes, the TFFE was established on the basis of known drill intersections of kimberlite for which insufficient diamond sampling exists to adequately estimate a diamond resource grade. TFFE totals 25.7 to 47.8 million carats (54.6 to 74.9 million tonnes at diamond contents grades ranging from 25 to 168 cpht).
Table 2: Total Target for Further Exploration (TFFE) (1), (2), (3)
TARGET FOR FURTHER EXPLORATION
KIMBERLITE RANGE OF
CONTAINED
CARATS
(millions) RANGE OF
TONNES
(millions) RANGE OF
GRADES
(cpht)
(4), (5)
Renard 2 4.2 TO 7.3 4.0 to 4.6 104 to 158
Renard 3 0.8 TO 2.8 0.8 to 1.7 105 to 168
Renard 4 5.6 TO 11.8 11.1 to 15.4 50 to 77
Renard 65 7.3 TO 13.5 29.0 to 40.9 25 to 33
Renard 9 2.0 TO 4.3 3.9 to 6.3 52 to 68
Lynx 3.0 TO 3.8 3.1 to 3.2 96 to 120
Hibou 2.9 TO 4.3 2.7 to 2.9 104 to 151
25.7 TO 47.8 54.6 to 74.9 n/a
Total TFFE +9.1% to -1.4% -0.8% to -0.8% n/a
(1) Formerly known as Potential Mineral Deposit. TFFE does not constitute a mineral resource; refer to cautionary language contained within this release.
(2) Totals may not add due to rounding.
(3) Changes from January 2011 estimate shown in italics.
(4) Carats per hundred tonnes.
(5) Estimated at a +1 DTC sieve size cut-off.
n/a = not applicable or no direct comparison
Diamond valuation data utilized in the updated Mineral Resource estimate for the test of prospects of reasonable economic extraction is derived from the most recent valuation exercise undertaken in March 2013 by WWW International Diamond Consultants Inc ("WWW"; see Stornoway press release April 11, 2013). These diamond valuation estimates and price models are summarized in Table 3 below.
Table 3: Diamond Price Models(1)
DIAMOND VALUATIONS
KIMBERLITE SAMPLE
SIZE SAMPLE
VALUATION(2) BASE CASE
PRICE MODEL HIGH
SENSITIVITY LOW
SENSITIVITY
(Carats) US$/Carat US$/Carat US$/Carat US$/Carat
Renard 2 1,581 $ 180 $ 190 $ 214 $ 172
Renard 3 2,752 $ 173 $ 151 $ 185 $ 141
Renard 4 2,674 $ 100 $ 104 ($150)
(3) $ 168 $ 98
Renard 65 997 $ 250 $ 180 $ 203 $ 169
(1) All prices in US$ per carat. Samples utilizing a +1 DTC sieve size cut-off.
(2) Based on the March 2013 price book of WWW International Diamond Consultants Ltd.
(3) Should the Renard 4 diamond population prove to have a diamond population with a size distribution equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model of $150 per carat would apply based on March 2013 pricing.
Qualified Persons
Mr. David Farrow, PrSciNat, P.Geo.(BC), Ordre des geologues du Quebec (Special Authorisation # 279) of GeoStrat Consulting Services Inc. is the independent Qualified Person responsible for preparation of the mineral resource estimate for the Renard Diamond Project. GeoStrat Consulting Services Inc, a mineral resources consultancy, focuses on client interaction and involvement in developing resource models, and has experience in exploration, geological modeling, resource evaluation, production, resource reconciliation and accounting of diamond deposits around the globe. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101. Both of these Qualified Persons have reviewed and approved the contents of this release.
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. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. 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
Stornoway (SWY.TO) Reports Positive Renard 65 Diamond Valuation Result
MONTREAL, QUEBEC--(Marketwired - April 11, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to provide the results of an independent valuation on the Renard 65 bulk sample diamonds recently recovered at the Renard Diamond Project in north-central Quebec. The valuation was undertaken in Antwerp, Belgium by WWW International Diamond Consultants ("WWW") utilizing their March 2013 price book. Highlights are as follows:
•An average price of US$250 per carat on the total Renard 65 parcel of 997 carats.
•A diamond price model for Renard 65 of US$180 per carat, with a "High" sensitivity of US$203 per carat and a "Minimum" sensitivity of US$169 carat.
•Valuations of US$8,500 per carat and US$5,900 per carat on the two largest stones of 9.77 carats (G colour) and 6.40 carats (F colour) respectively.
Matt Manson, President and CEO commented "This new valuation work has confirmed a high quality diamond population at Renard 65 that we anticipate will now allow the addition of a substantial quantity of new, open-pit resources to the project's mine plan. Two features of this work stand out. Firstly, the two large stones in the sample, previously announced by Stornoway, have been confirmed by WWW as amongst the most valuable stones recovered at the project to date. Their large impact in the parcel valuation has been tempered, appropriately, in the recommended base case price model, but their presence confirms a key characteristic of the Renard Project: upside value potential in large gems. Secondly, the WWW work has determined that Renard 65 possesses a diamond population with a different, and generally better, assortment of qualities than is seen in the other Renard kimberlite pipes. This has prompted a re-evaluation of the valuation models used in the project generally, which have previously been based on the assumption that Renard exhibits a single diamond population sampled by multiple pipes. The consequences of these findings for the project are significant, and positive."
Renard 65 and the Renard Mine Plan
The Renard 65 bulk sample was undertaken with a view to the potential conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and, if warranted, to a Mineral Reserve. Within the larger Renard Mineral Resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 million carats (representing 12.9 million tonnes at an average grade of 29 carats per hundred tonnes) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 million carats (29.5 to 41.6 million tonnes at between 23 and 33 cpht) from 290m to 775m in depth. As outlined in November 2011 Feasibility Study and subsequent Optimization Study, the Renard mine plan currently contemplates the mining of a 17.9 million carat Mineral Reserve from Renard 2, 3 and 4 from a combined open pit and underground mine at a processing rate of 6000 tonnes per day. Consistent with Canadian disclosure standards, this mine plan does not include the mining and processing of any of the project's Inferred Mineral Resources. The addition of new open-pit resources at Renard 65 is expected to allow an increase in processing capacity to 7000 tonnes per day and the extension of the project's reserve life.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource
Diamond Market Survey
The Renard 65 valuation exercise has also afforded an opportunity to calibrate the value of the Renard 2, 3 and 4 diamond parcels in the current market against the May 2011 price assumptions that were used in the November 2011 Feasibility Study and subsequent Optimization Study. Over this period the diamond market has experienced a high degree of price volatility, including a sustained period of weakness in 2012. However, the market has recovered in the first quarter of 2013 and WWW have reported that prices for Renard-specific diamond assortments are currently within 7% to 8% of May 2011 levels.
Table 1: Summary of Parcel Valuations1
Kimberlite
Sample Size (Carats)
Average of Independent Valuations (May 2011)2
WWW Valuation(May 2011)3
Average of Independent Valuations (Mar 2013)2
WWW Valuation(Mar 2013)3
Price Change Due to Market
Renard 2
1,581
$173
$195
$161
$180
-7%
Renard 3
2,752
$171
$190
$157
$173
-8%
Renard 4
2,674
$100
$107
$93
$100
-7%
Renard 65
997
n/a
n/a
n/a
$250
n/a
Notes
1.All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off.
2.Based on the average of 5 independent diamantaire valuations, as established in the May 2011 open market valuation exercise. This average is adjusted into March 2013 terms based on the application of the relative price changes seen by WWW over this period.
3.Based on WWW alone. In each case WWW's own valuation was higher than the average of the five valuations.
Renard Diamond Price Models
The May 2011 valuation exercise utilized valuations by 5 independent valuators, including WWW, from which diamond price models were derived for mine planning purposes. At that time, the diamond samples from each kimberlite pipe were interpreted by Stornoway to have similar characteristics and represented a single diamond population. This interpretation led to the recommendation that employing a single diamond price model, derived from combining the Renard 2 and Renard 3 datasets, would be the most appropriate method for establishing diamond price estimates for the Renard project.
The determination that the Renard 65 kimberlite has a markedly different assortment of diamond qualities than the other kimberlite pipes has led WWW to recommend that individual price models for each pipe now be considered, and that the small differences in diamond quality and size distribution that can be observed in the diamond samples be treated as real. This has the effect of increasing the base case diamond price model for Renard 2 and decreasing the diamond price models for Renard 3 and Renard 4. The Renard kimberlites can now be said to exhibit similar, but different, diamond populations meriting individual consideration for pricing and valuation modeling. This is consistent with what is seen in most other diamond mines in the world that are based on a cluster of individual kimberlite pipes. Since Renard 2 contains 83% of the current Mineral Reserve at Renard, this adjustment to individual valuation models is expected to yield a net positive impact on project value.
Table 2: Diamond Price Models1
WWW Price Models (May 2011)
Utilizing Common Value and Size Distribution Models
WWW Price Models (Mar 2013)
Utilizing Independent Value and Size Distribution Models
Kimberlite
Base
Case
Model
Sensitivities
Base
Case
Model
Sensitivities
High
Minimum
High
Minimum
Renard 2
$182
$236
$163
$190
$214
$151
Renard 3
$182
$205
$153
$151
$185
$141
Renard 4
$112
($164)2
$185
$105
$104
($150)2
$168
$98
Renard 65
n/a
n/a
n/a
$180
$203
$169
Notes
1.All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off.
2.Should the Renard 4 diamond population prove to have a diamond population with a size distribution equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model of $164 per carat would apply based on May 2011 pricing and $150 per carat based on March 2013 pricing.
For purposes of comparison, updated diamond price models based on the same assumptions used in May 2011 have been estimated by WWW as US$166 per carat for Renard 2 and 3 (with a High sensitivity of US$183 and a Minimum sensitivity of US$155) and US$150 for Renard 4 (with a High sensitivity of US$168 and a Minimum sensitivity of US$140), consistent with recent market price movements.
In the case of Renard 4, independent studies on diamond breakage and poor plant performance during the processing of the bulk sample have previously indicated that the size distribution of the Renard 4 diamond sample has been artificially modified during recovery. Should this prove to have been the case, a higher diamond price estimate for the Renard 4 kimberlite might still be expected.
Large Diamonds in Exploration Samples at Renard
Since its discovery in 2001, a characteristic of the Renard Diamond Project has been the incidence of large, high quality diamonds that have been recovered at each stage of exploration sampling. The most celebrated of these was a Renard 65 white octahedral gem of at least 4 carats discovered embedded in drill core in 2003. To date approximately 8,000 carats have been recovered from the Renard 2, 3, 4 and 65 kimberlite pipes, including 17 stones weighing 5 carats or more with a combined weight of 123.32 carats (see picture on our websitehttp://tinyurl.com/cudp9e8). These include a 15.46 carat top light brown "makeable" gem from Renard 2, a 10.15 carat white octahedral gem from Renard 3, and the 9.77 carat white octahedral gem from Renard 65. In the latest WWW valuation the average value of these 17 stones is US$3,100 per carat. Six stones have values in excess of US$4,000 per carat. The WWW base case valuation models for the Renard project assume an average price of, variously, US$1,900 to US$2,200 per carat for stones between 5 and 10 carats in size. A substantial increase in revenue will be achieved for the Renard Project should large diamonds continue to be recovered upon commercial production on the same basis as has been achieved in the sampling performed to date.
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, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. 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
Stornoway (SWY.TO) Options Non-Core Exploration Projects
MONTREAL, QUEBEC--(Marketwire - Mar 14, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to report that it has entered into option agreements with 0954506 B.C. Ltd. (the "Optionee"), a private company controlled by Ms. Eira Thomas, formerly a director of Stornoway, relating to Stornoway''s interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects. Under the terms of the option agreements, the Optionee will acquire an 80% interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects upon completion of a defined exploration program (the "option work program") specific to each project. The option work programs will be funded and operated by the Optionee. Stornoway retains a one-time back-in right to re-acquire a 20% interest in each project, thereby increasing its interest to 40%, by paying the Optionee an amount equal to three times the cost incurred by the Optionee in connection with the project-specific option work program. Stornoway has a 100% interest in each of these projects; the Qilalugaq project is subject to a 3% net smelter returns royalty on metals produced and a 3% gross-overriding royalty on the sale of industrial minerals, including diamonds.
The Optionee has notified Stornoway of its intent to assign its interest and obligations in the option agreements to North Arrow Minerals Inc. (TSX VENTURE:NAR) ("North Arrow"), as permitted under the terms of the option agreements. Upon closing of the assignment, North Arrow, as optionee, will assume the rights and obligations of 0954506 B.C. Ltd. under these agreements.
The option work program for the Qilalugaq, Nunavut project is designed to evaluate the potential of the Q1-4 kimberlite by the surface collection and subsequent processing of a 1,000 tonne bulk sample. The option work programs for the Pikoo, Saskatchewan and Timiskaming, Ontario projects are designed to evaluate the potential for bedrock kimberlite occurrences at each project. The Pikoo option work program will consist of a minimum of 2,000 meters of diamond drilling within the project, with a minimum of two drill holes for each of the North and South Target areas. The Timiskaming option work program will consist of single core drill holes testing three separate geophysical targets. The Timiskaming option agreement excludes the previously identified 95-2 kimberlite. Stornoway expects that exploration on these projects will commence in 2013, subject to receipt of all required permits and authorizations.
Matt Manson, Stornoway''s President and CEO commented: "This option agreement allows us to move these promising exploration projects forward while allowing our management team to focus on the development of the Renard Diamond Project, our core asset. The bulk sample program at Qilalugaq, for which an Inferred Mineral Resource of 26 million carats was declared by Stornoway in June 2012, is designed to recover a large enough parcel of diamonds for a preliminary valuation and economic assessment. The Pikoo and Timiskaming work programs are designed to test for the presence of kimberlite with economic potential. At the end of each program Stornoway and the Optionee will be well placed to make a determination on whether to advance each project further within a joint venture, if results warrant."
About the Qilalugaq, Pikoo, Timiskaming Exploration Projects
The Qilalugaq Diamond Project, located on the Rae Isthmus of Nunavut close to the hamlet of Repulse Bay, includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes. The project was originally optioned by Stornoway and subsequently acquired from BHP Billiton Diamonds Inc. in July 2006 and July 2010, respectively. The project includes the 12.5 hectare Q1-4 kimberlite, the largest kimberlite pipe in the eastern Canadian Arctic. In June 2012 Stornoway announced an Inferred Mineral Resource at Q1-4 of 26.1 million carats from 48.8 million tonnes of kimberlite with an average +1 DTC total diamond content of 53.6 carats per hundred tonnes (cpht) extending from surface to a depth of 205m. Additional resource upside in the form of a target for further exploration was estimated at between 7.9 to 9.3 million carats from 14.1 to 16.6 million tonnes of kimberlite with an average +1 DTC total diamond content of 56.1 cpht, extending from 205m depth to 305m depth.
The Pikoo Project comprises 33,374 hectares of contiguous claims located in central Saskatchewan, approximately 140 km east of La Ronge Saskatchewan and 100 km west of Flin Flon Manitoba and close to the community of Deschambault Lake. Previous geochemical and geophysical work by Stornoway has outlined the potential for several kimberlites with diamond potential on the property. In 2012 kimberlite float was discovered that returned a single microdiamond from 73.8 kilograms of material submitted for caustic dissolution.
The Timiskaming Project comprises 3,865 hectares of claims located close to the community of New Liskeard, Ontario. Stornoway and its predecessor companies have discovered a total of 9 kimberlites out of over 50 kimberlites that are believed to have been discovered in the region. Stornoway''s 95-2 kimberlite, the best delineated and most promising Timiskaming kimberlite discovered to date, contains an Inferred Mineral Resource of 2.3 million carats from 20.2 million tonnes of kimberlite with an average +1 DTC total diamond content of 11.3 cpht extending from surface to a depth of 300m. The 95-2 kimberlite is excluded from the Timiskaming option agreement
Stornoway (SWY.TO) Completes Renard 65 Diamond Recovery
MONTREAL, QUEBEC--(Marketwire - Feb. 25, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to report that it has completed diamond recovery from the Renard 65 bulk sample recently collected at Stornoway's 100% owned Renard Diamond Project located in north-central Quebec. In total, 962.8 carats of diamonds larger than a +1 DTC size sieve were recovered from 5080.8 dry tonnes. The size of the diamond sample recovered and the incidene of large diamonds are consistent with Stornoway's expectations for the Renard 65 kimberlite at this sample location.
The objective of the Renard 65 bulk sample was the collection of approximately 1,000 carats of Renard 65 diamonds for valuation purposes. Having achieved this objective, a diamond valuation exercise has been scheduled to take place shortly in Antwerp, Belgium.
As previously announced (Stornoway press release dated December 11th 2012) the largest diamond recovered from the sample was a 9.78 carat white octahedral gem with a preliminary valuation of $7,000 per carat. The next largest diamond was a 6.41 carat white gem also of high quality, with a preliminary valuation of $4,700 per carat.
The Renard 65 bulk sampling is being undertaken with a view to the potential conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and, if warranted, to a Mineral Reserve for inclusion in the project's mine plan. Within the larger Renard Mineral Resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 million carats (representing 12.9 million tonnes at an average grade of 29 carats per hundred tonnes) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 million carats (29.5 to 41.6 million tonnes at between 23 and 33 cpht) from 290m to 775m in depth. The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.
The current bulk sample was extracted from a site that is known to represent a lower grade portion of the kimberlite, but which is easily accessible from surface. In 2008, a 266 tonne trench sample from the same location returned 51.8 carats for a diamond recovery of 19 cpht, identical to the current result.
Large Diamonds in Exploration Samples at Renard
A feature of the Renard Diamond Project has been the incidence of large, high value stones that have been recovered at each stage of exploration sampling since the project's discovery in 2001. The current Renard 65 bulk sample has continued this trend. In 2003 a white octahedral gem of at least 4 carats was discovered embedded in drill core at Renard 65. During the Renard bulk sampling program of 2007 a 15.46 carat top light brown "makeable" gem was recovered from Renard 2, a 10.15 carat white octahedral gem was recovered from Renard 3, and a broken 21.53 carat brown octahedral gem was recovered from the Lynx Dyke in three pieces of 11.73, 5.96 and 3.94 carats. In all, at least seven large stones have now been recovered from Renard with values in excess of US$4,000 per carat.
Scientific and Technical Data
Diamond results reported in this release are based on dense media separation (DMS) processing work completed by Stornoway at its wholly owned and operated 10 tonne per hour (tph) DMS plant situated in northern Quebec. Kimberlite was prepared through a primary jaw crusher, with -50 mm material fed directly into the DMS which is configured to recover stones retained on a 1.0 x 12.0mm slotted screen. Recovery of +1 DTC diamonds from the DMS concentrate was carried out at Stornoway's wholly owned diamond laboratory in North Vancouver whereby concentrates were processed through x-ray sorter equipment with a grease table finish to generate a final concentrate which was hand sorted to extract diamonds. Quality assurance protocols, security and actual operating procedures for the processing, transport and recovery of diamonds conform to industry standard Chain of Custody provisions. As part of Stornoway's ongoing QA/QC program, all aspects of the bulk sample program are subject to audit. Any material changes to the recovered diamond contents provided above will be reported when available.
Qualified Persons
Mr. David Skelton, P.Geo. (QC), P.Geol (AB), Vice President, Project Development for Stornoway is a Qualified Person as defined under National Instrument ("NI") 43-101 and was responsible for supervising the Renard 65 bulk sample program on the Renard Diamond Project. Mr. Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration for Stornoway is a Qualified Person as defined under NI 43-101 and was responsible for supervising the diamond recovery. Messrs. Skelton and Hopkins have reviewed and approved the scientific and technical information contained in this release. Diamond valuations were performed by Mr. Shlomo Tidhar of Galaxy Diamond Expertise (HK), a consultant to Stornoway.
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 NI 43-101 stand at 17.9 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project, and the press release dated 28th January 2013 in respect to the January 2013 Optimization Study, for further details and assumptions relating to the project.
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 also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Stornoway (SWY.TO) Reports Arrival of Winter Road at Renard Project Site
MONTREAL, QUEBEC--(Marketwire - Feb 14, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to report that the Québec Ministère des Transports ("MTQ") has successfully completed the construction of a winter road to the Renard Diamond Project site, two weeks ahead of schedule. The winter road is expected to be open for approximately 6 weeks, and will be used by Stornoway to mobilize heavy equipment required for the construction of the all-season Renard Mine Road. With today''s news, the Renard project has become accessible for vehicles for the first time since its discovery in 2001.
The MTQ winter road has been constructed under a Framework Agreement executed on November 15th 2012 by Stornoway, the MTQ, the Québec Ministère des Ressources Naturelles, and the Québec Ministère des Finances et de l''Économie ("MFE"). Under the terms of this agreement, a 240km long all-season road linking Renard to the Québec highway network is currently being constructed in four segments, A to D. Progress is well established on segments A and B, which are being completed by the MTQ as a 70km/hr two-lane gravel highway. Stornoway will complete the remaining 97km covered by segments C and D as a 50km/hr single lane mining road under the terms of a Financing Agreement executed on December 6th 2012 between Stornoway and the MFE. The timely arrival of the MTQ winter road will allow Stornoway to commence construction of the Renard Mine Road in April, as previously planned. First all-season road access to Renard is scheduled for the 4th quarter of this year.
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. NI 43-101 compliant Probable Mineral Reserves stand at 17.9 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project, and the press release dated 28th January 2013 in respect to the January 2013 Optimization Study, for further details and assumptions relating to the project.
Stornoway (SWY.TO) Reports Optimized Renard Mine Design and Cost Estimates
Initial Capital Cost Reduced; High Operating Margin Maintained
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to report the completion of a mine design and cost optimization exercise (the "Optimization Study") for the Renard Diamond Project, Stornoway's 100% owned mining development project located in north-central Québec. The Optimization Study incorporates certain design refinements undertaken since the release of the project's Feasibility Study in November 2011 (the "Feasibility Study"), including the deferral of shaft access for the underground mine and a modified underground mining sequence and draw point design. As a result of these design changes, project operating and capital cost estimates have been restated, and a revised production schedule established. The Optimization Study also contains an updated project development schedule and financial model incorporating, amongst other things, the terms of the March 2012 Mecheshoo Agreement with the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee), and the Cree Regional Authority, and the November 2012 Renard Mine Road financing agreement with the Government of Québec. Highlights of the Optimization Study are as follows:
•A revised initial capital cost of C$752 million, including contingencies, in October 2012 terms, a reduction of C$50 million from the previous estimate which was expressed in June 2011 terms.
•A revised operating cost averaging C$57.63/tonne (C$76.63/carat) life of mine in October 2012 terms, an increase of C$2.92/tonne from the previous estimate.
•Base case estimates of Net Present Value ("NPV") of C$683 million at a 7% discount rate and Internal Rate of Return ("IRR") of 20.3% before taxes and mining duties, and C$391 million and 16.3% after taxes and mining duties, all improvements from the previous estimates.
•11 years reserve-based mine life with diamond production averaging 1.6 million carats/annum life of mine, real terms net revenue of C$4,046 million, and a cash operating margin of C$2,693 million (67% compared to 68% in the previous estimate).
Matt Manson, President and CEO, commented: "The Optimization Study reported today confirms a robust project with strong cash flows. Since the release of the project's Feasibility Study, we have been able to bring down our initial capital cost estimate with only a modest impact on the project's operating costs. We are particularly pleased that the project has so successfully absorbed the kind of post-feasibility design adjustments and operating agreements that can negatively impact a project's value. The deferral of the shaft has been achieved without compromising the future development of the project's substantial resource upside, and the refinements made to the underground mining sequence provide greater confidence in the operating parameters for this critical part of the overall mine plan. With our Mining Lease and Québec Certificate of Authorization in hand, and the Renard Mine Road under development, we can now move towards finalizing our project financing arrangements, and initiating project construction in the third quarter of this year."
The Optimization Study restates the project's Probable Mineral Reserves at 17.9 million carats (23.8 Mtonnes at 75 carats per hundred tonnes, or "cpht"), a reduction of 0.1 million carats after allowance for revised mining dilution and ore recovery estimates. The new study does not incorporate any changes to the project's underlying National Instrument ("NI") 43-101 compliant Mineral Resources, and does not include the results of the ongoing bulk sampling program at the Renard 65 kimberlite. Including Renard 65, the project contains 17.5 million carats (31.1 Mtonnes at 56 cpht) of Inferred Mineral Resources, much of which lies within the envelope of the planned mine infrastructure. Since mineral resources that are not mineral reserves do not have demonstrated economic viability, these have not been incorporated into the Optimization Study mine plan, in compliance with Canadian reporting standards. However, the project's design, processed kimberlite storage capacity, permits and Mining Lease contemplates the eventual mining of all NI 43-101 Mineral Resources over an extended mine life. In addition to the Mineral Resources, 23.5 to 48.5 million carats of non-resource exploration upside (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht) has been estimated to 775 meters depth, below which each kimberlite remains open. Readers are cautioned that the potential quantity and grade of any such exploration target is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource (an Optimization Study Support Material presentation is available at http://stornowaydiamonds.com/_resources/feasibility_support_materials_20130128.pdf).
Significant Changes to the November 2011 Feasibility Study
The Feasibility Study included both ramp and shaft access to the Renard underground mine. Shaft sinking will now be deferred until later in the mine life and access to the underground mine will be by way of a ramp only. This will be developed to a depth of 610 meters, sufficient to extract all Mineral Reserves and the Inferred Mineral Resources, and enlarged to accommodate the planned production rate of 6,000 tonnes of ore daily. Ore will be hauled to surface by 60 tonne trucks, with ramp ventilation capacity and surface maintenance facilities expanded to accommodate the increased fleet. Plant capacity remains at 6,000 tonnes per day (2.2 Mtonnes/year) expandable to 7,000 tonnes per day (2.6 Mtonnes/year). Power requirements are expected to total 12.2 MW during operations and be provided by on-site diesel power generation.
Diamond production in Years 1 and 2 remains predominantly derived from the Renard 2/3 open pit. Diamond production from the underground mine will commence during Year 2. As with the Feasibility Study, underground ore will be mined with blast-hole shrinkage on 250 meter, 430 meter and 610 meter development levels, with waste back fill from surface. The Optimization Study contains a refined draw point design and a mining sequence incorporating a panel-retreat method to better assure geomechanical stability and militate against the unexpected onset of natural caving. Numerical analysis of blast fragmentation, and modeling of ore flow during the draw, has been conducted using REBOP™ software. This has resulted in a modest increase in the overall estimate for ore dilution and a modest decrease in the estimate for ore recovery.
No changes have been made to assumptions contained within the Feasibility Study for diamond price, exchange rate, or marketing costs. The cost of diesel fuel is based on an assumed oil price of US$95/barrel compared to US$90/barrel previously.
The Optimization Study incorporates the impact of a Framework Agreement between Stornoway and the Québec Ministère des Transports, the Ministère des Ressources Naturelles, and the Ministère des Finances et de l'Économie ("MFE") for the completion of the Route 167 Extension and the Renard Mine Road, and a revised financing agreement between Stornoway and the MFE (Stornoway press releases dated November 15 and 30, 2012). The Optimization Study assumes a cost to Stornoway of $78 million (after escalation) to complete the road. The MFE loan to Stornoway funding the Renard Mine Road is in two tranches, $77 million at 3.35% and, to the extent required, an additional $7.7 million at 6.3%, both with a term of 15 years, with interest accruing from January 2016 and interest and principal payments beginning in December 2016. As a result of these agreements, the new project development schedule assumes first road access to the project site by the fourth quarter of 2013 rather than July 2013 previously. Plant commissioning is now scheduled to begin in December 2015 with commercial production achieved by June 2016, compared to July 2015 and January 2016 previously.
The Optimization Study also incorporates certain financial terms of the Mecheshoo Agreement, the Impacts and Benefits Agreement between Stornoway, the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee) and the Cree Regional Authority (Stornoway press release dated March 27, 2012). The Mecheshoo Agreement includes a mechanism by which the Cree parties will benefit financially from the success of the project on a long term basis, consistent with mining industry best practices for social engagement.
The results of the Optimization Study are outlined in Table 1 below.
Table 1: Results and Key Assumptions
November 2011 Feasibility Study
January 2013 Optimization
Mining Parameters
Reserve Carats (M)
18.0
17.9
Tonnes Processed (M)
23.1
23.8
Recovered Grade (cpht)
78
75
Average Ore Recovery (%)
83.5%
82.9%
Average Mining Dilution (%)
13.5%
17.9%
Dilution Grade (cpht)
0
0
Processing Rate (Mtonnes/annum)
2.2
2.2
Mine Life (years)
11
11
Cost Parameters
Initial Cap-ex (C$M)1
$802
$752
LOM Cap-ex (C$M)3
$994
$1,013
Oil Price (US$/barrel)1
$90
$95
LOM Op-ex (C$/tonne)1
$54.71
$57.63
LOM Op-ex (C$/carat)1
$70.27
$76.63
Revenue Parameters
Gross Revenue (C$M)1
$4,112
$4,268
Marketing Costs
2.7%
2.7%
DIAQUEM Royalty
2.0%
2.0%
Cash Operating Margin (C$M)1
$2,677
$2,693
% Operating Margin
68%
67%
Income Tax, Mining Duties and IBA payments (C$M)1
$571
$625
After Tax Net Cash Flow (C$M)
$1,151
$1,084
Diamond Price Parameters2
Renard 2 and Renard 3 (US$/carat)
$182
$182
Renard 4 (US$/carat)
$164
$164
Diamond Price Escalation
2.5%
2.5%
Exchange rate
1C$=1US$
1C$=1US$
Schedule Parameters
Effective Date for NPV Calculation
January 1 2012
January 1 2013
Construction Mobilization (Early Works)
July 1 2013
August 1 2013
Plant Commissioning Commences
July 1 2015
December 1 2015
Commercial Production Declared
January 1 2016
June 1 2016
Valuation Parameters4
Pre-Tax NPV7% (C$M)
$672
$683
Pre-Tax IRR
18.7%
20.3%
After-Tax NPV7% (C$M)
$376
$391
After-Tax IRR
14.9%
16.3%
1.November 2011 Feasibility Study expressed in June 2011 terms. January 2013 Optimization expressed in October 2012 terms.
2.Prices are expressed in May 2011 terms.
3.Expressed in nominal terms.
4.De-escalated nominal terms.
Capital and Operating Costs
Capital and operating costs in the Optimization Study were adjusted on the basis of modified deliverables and material take offs arising from the mine design scope changes. No changes were made to quantity estimates where no design changes had been made. Capital cost is estimated at an accuracy of -11% and +19%. All estimated costs were escalated to October 2012 terms from June 2011 terms previously by applying market inflation indices. Indirect, owners and EPCM costs were re-assessed on the basis of the revised project schedule including early works and infrastructure availability. Contingencies, risk and escalation factors were all re-assessed.
Initial capital costs are now estimated at C$752.1 million, including a contingency of C$64.7 million, expressed in October 2012 terms. Life of Mine capital cost, including escalation commencing in Q4 2012, the Renard Mining Road, sustaining and deferred capital, less credits for pre-production revenue and salvage value, are estimated at C$1,012.9 million.
Table 2: Estimate of Capital Costs1
November 2011 Feasibility Study
January 2013 Optimization
Site Preparation & General
$ 22.9
$ 32.7
Mining
$ 236.9
$ 151.2
Mineral processing plant
$ 168.4
$ 175.4
Onsite utilities and infrastructures
$ 102.4
$ 114.8
Owner's Cost
$ 86.2
$ 94.7
Spares, fills, tools
$ 10.2
$ 7.1
EPCM services
$ 45.0
$ 47.9
Field indirect costs, vendor representatives
$ 22.5
$ 33.9
Construction camp & Catering
$ 25.0
$ 24.5
Freight and duties
$ 8.1
$ 5.5
Contingency
$ 74.3
$ 64.7
Total Initial Capital
$ 801.8
$ 752.1
Escalation Allowance on Initial Capital
$ 57.3
$ 45.1
Pre-Production Revenue
$ (24.6)
$ (25.0)
Deferred & Sustaining Capital2
$ 138.8
$ 175.9
Deferred Capital (Route 167 Extension)
$ 44.0
$ 0.0
Renard Mine Road2
$ 0.0
$ 78.0
Salvage Value2
$ (22.9)
$ (13.3)
Total Life of Mine Capital, After Contingency, Escalation, Deferred and Sustaining Capital
$ 994.4
$ 1,012.9
All figures in C$ million.
1. Totals may not add due to rounding.
2. After Escalation
Life of mine operating cost is estimated at C$57.63/tonne (C$76.63 per carat; Table 3). The majority of open pit costs at Renard 2 and 3 occur before June 2016 and are contained within the capital cost estimates.
Table 3: Estimate of Operating Costs1,2
November 2011
Feasibility Study
January 2013
Optimization
C$ millions
Unit Cost $/Tonne
C$ millions
Unit Cost $/Tonne
Open Pit Mine
$ 6
$ 0.27
$ 10
$ 0.43
Underground Mine3
$ 556
$ 24.45
$ 555
$ 23.64
Processing
$ 344
$ 15.13
$ 359
$ 15.29
G&A
$ 338
$ 14.86
$ 429
$ 18.27
Total Life of Mine Operating Costs
$ 1,244
$ 54.71
($70.27/ct)
$ 1,352
$ 57.63
($76.63/ct)
1.Totals may not add due to rounding. November 2011 Feasibility Study costs are expressed in Q3 2011 terms. January 2013 Optimization costs are expressed in Q3 2012 terms.
2.Excludes capitalized preproduction costs.
3.Unit cost per processed tonnes. Unit cost per mined tonnes were $26.13 in the November 2011 Feasibility Study and are $25.53 in the 2013 Optimization Study.
Qualified Persons
Jean-François St-Onge, Eng. of SNC Lavalin Inc. is the independent Qualified Person responsible for infrastructure design, the operating and capital cost estimate, and risk management.
Dr. Lynton Gormely, P.Eng. of AMEC Americas Limited is the independent Qualified Person responsible for process plant design.
Mr. William Bagnell, P.Eng. of AMEC Americas Limited is the independent Qualified Person responsible for underground mine design and mineral reserves.
Mr. Louis-Pierre Gignac, Eng. of G Mining Services Inc. is the independent Qualified Person responsible for open pit design and mineral reserves, and financial analysis.
Mr. Martin Magnan, Eng. of Roche Lte. is the independent Qualified Person responsible for permitting and environmental and social considerations.
Mr. Paul Bedell, P.Eng. of Golder Associates Ltd. is the independent Qualified Person responsible for geotechnical, water management and processed kimberlite containment facility design.
Ms. Valérie Bertrand, Géo. of Golder Associates Ltd. is the independent Qualified Person responsible for geochemical classification.
Dr. Richard Brummer, P.Eng. of Itasca Consulting Canada Inc. is the independent Qualified Person responsible for geomechanical and hydrogeological considerations.
Mr. Charles Gagnon, Eng. of Roscoe Postle Associates Inc. is the independent Qualified Person responsible for underground ventilation design.
Mr. David Farrow, P.Geo. (BC) of GeoStrat Consulting Inc. is the independent Qualified Person responsible for the preparation of the mineral resource estimate for the Renard Diamond Project.
All of these Qualified Persons have reviewed and approved the contents of this press release for which they are responsible.
Stornoway will file a NI 43-101 compliant technical report on the Optimization Study, representing an amended Feasibility Study, within 45 days.
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 Renard results in the November 2011 Feasibility Study followed with the January 2013 Feasibility Study Optimization which highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 17.9 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project for further details and assumptions relating to the project.
First video was deleted, here's the new one: http://bit.ly/V8cP58
CEO Matt Manson Interviewed
CEO of Stornoway Diamonds Matt Manson sits down wth Tara Sweder for an exclusive one on one interview. Manson discusses the rarity of diamond mining, the significance of the Renard Diamond Project, the present and future challenges faced in mining for diamonds and his personal experiences in the industry.
Watch the interview: http://bit.ly/RA5jp2
Stornoway (SWY.TO) Receives Transfer of the Certificate of Authorization for The Renard Mine Road
MONTREAL, QUEBEC--(Marketwire - Dec. 17, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has received from the Québec Ministère du Développement durable, de l'Environnement, de la Faune et des Parcs ("MDDEFP") the transfer of the Certificate of Authorization for the construction of the Renard Mine Road, the 97 km long mining grade road that Stornoway will construct to complete all season road access to the Renard Diamond Project. The transfer of this Certificate of Authorization has been made consistent with the schedule contained within the Framework Agreement entered into on November 15th 2012 between Stornoway, the MDDEFP, the Québec Ministère des Transports ("MTQ"), the Ministère des Ressources Naturelles and the Ministère des Finances et de l'Économie.
Construction of the road that will provide all-season vehicle access to the Renard Project began in February 2012 as the "Route 167 Extension". Under the terms of the Framework Agreement, and a subsequent Financing Agreement entered into on November 30th, 2012, Québec will complete the first 143km of road as a 70km/hr two-lane gravel highway as previously planned and Stornoway will undertake the construction of a 50km/hr single lane mining road over the remaining 97km. Québec will provide Stornoway with credit facilities of up to C$85 million to complete this work. To facilitate the road's construction schedule, the MTQ will complete a winter road by March 2013 to allow temporary access to Renard and the mobilization of fuel, road construction equipment and camps. It is expected that permanent road access to Renard will be available by Q4 2013 to allow mine construction to commence.
The Renard Mine Road Certificate of Authorization represents the principal regulatory approval required for Stornoway to commence road construction. Given that the single lane road that will be built will have a smaller environmental footprint than was previously contemplated for the Route 167 Extension, Stornoway will seek minor changes to the terms of the authorization.
Stornoway (SWY.TO) Completes Finance Agreement With Quebec for Renard Mine Road
MONTREAL, QUEBEC--(Marketwire - Dec. 7, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that its wholly-owned subsidiary Les Diamants Stornoway (Canada) Inc. has completed a Financing Agreement with the Québec Ministère des Finances et de l'Économie ("MFE") under which Stornoway will be financed to complete the construction of a mining-grade access road to the Renard Diamond Project (the "Renard Mine Road"). The Financing Agreement is pursuant to a Framework Agreement and associated Letter of Intent previously executed between Québec and Stornoway and announced on November 15, 2012. The Framework Agreement and the now-completed Financing Agreement are designed to ensure all-season road access to Renard during 2013. Features of the Financing Agreement are as follows:
•Québec to provide Stornoway with a credit facility of up to C$77m ("Loan A") to complete the road construction work, at an annual interest rate of 3.35% percent, for a term of 15 years, with repayment beginning 48 months following first disbursement, and deferrable up to 2 years due to any delay in the attainment of commercial production at Renard past July 1, 2016.
•Québec to provide Stornoway an additional overrun facility of up to C$7.7m ("Loan B"), at an annual interest rate of 6.3% percent, with repayments concurrent with Loan A.
•Stornoway undertakes to complete construction of the Renard Mine Road no later than June 30, 2015, subject to certain terms, including terms of the previously announced Framework Agreement.
On the basis of the construction schedule as currently anticipated, Stornoway expects to request an initial disbursement under Loan A during the month of December 2012.
Stornoway (SWY.TO) Receives Renard Certificate of Authorization
Major Permitting Milestone Achieved on Schedule
MONTREAL, QUEBEC--(Marketwire - Dec 6, 2012) - Stornoway Diamond Corporation (SWY.TO) is pleased to announce that it has received the global Certificate of Authorization for the Renard Diamond Project from the Québec Ministère du Développement Durable, de l''Environnement,de la Faune et des Parcs ("MDDEFP"). The Certificate of Authorization represents the principal regulatory approval required to commence mine construction, and has been issued by the Québec regulators following more than 2 years of formal environmental study, community engagement and public consultation under the terms of the James Bay and Northern Québec Agreement (the "JBNQA").
Matt Manson, Stornoway''s President and CEO commented: "Today''s news represents the most significant milestone in the development of the Renard Diamond Project achieved to date. It comes just 11 months since the filing of the project''s Environmental and Social Impact Assessment, an accomplishment that reflects the high quality of the work undertaken by Stornoway''s project team and partners, and the broad support that the project enjoys within the nearby communities of Mistissini, Chibougamau and Chapais. The MDDEFP global Certificate of Authorization is the most important element of the permitting process for mining projects in Québec. As of today we are able to say that the principal regulatory hurdle for the Renard Diamond Project is behind us."
The Renard project falls under the social and environmental protection regimes of both the JBNQA and the Canadian Environmental Assessment Act ("CEAA"). Successful public hearings on the project were held by the federal Canadian government and Québec in June and August of this year respectively. Stornoway expects to receive regulatory authorizations from the Fisheries and Oceans Canada and Environment Canada shortly, following the conclusion of the federal government''s evaluation of the project under the CEAA. The Québec Certificate of Authorization has been issued by the MDDEFP upon the recommendation of the review committee of the JBNQA ("COMEX"). The project''s Mining Lease was issued by the Québec Ministère des Ressources naturelles in October.
The Renard Environmental and Social Impact Assessment, as well as the project''s Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway''s website (www.stornowaydiamonds.com/renard/esia).
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec''s first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway (SWY.TO) Completes Renard 65 Bulk Sample Field Program
MONTREAL, QUEBEC--(Marketwire - Nov. 21, 2012) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has completed the field portion of a bulk sample program on the Renard 65 Kimberlite pipe, located at Stornoway's 100% owned Renard Diamond Project in north-central Quebec. The program was announced in a press release dated July 23, 2012.
The objective of the bulk sample program is to collect a large enough parcel of diamonds to allow the conversion of material that is currently classified as an Inferred Mineral Resource at Renard 65 to an Indicated Mineral Resource and then, if warranted, to a Mineral Reserve. Sampling commenced in July with the objective of collecting five thousand tonnes from a surface trench through blasting. Following the trenching, a sample of approximately 5,147 dry tonnes of kimberlite from Renard 65 was processed at the 10 tonne per hour Dense Media Sample plant located at the Renard project site. A heavy mineral concentrate produced by the plant will now undergo final diamond recovery at Stornoway's North Vancouver lab facilities. Diamond results are expected in Q1 2013. Given the estimated diamond content at the sampling site, it is expected that approximately 1,000 carats of diamonds will be recovered, which will be sent to Antwerp, Belgium for valuation.
Matt Manson, President and CEO, commented: "We are pleased that trenching and processing of the Renard 65 bulk sample has progressed so well to date. Although Renard 65 is lower grade than the other four kimberlites contained within the Renard Mineral Resource, it is the largest pipe discovered to date at Renard and is amenable to large scale open-pit mining. The successful conversion of Inferred Mineral Resources at Renard 65 to a Mineral Reserve will allow us to plan for an expanded processing rate and an extension of the reserve mine life beyond the current 11 years. This is all expected to add value to the project."
In November 2011, Stornoway released the first National Instrument ("NI") 43-101 compliant Mineral Reserve estimate for Renard of 18.0 Mcarats (representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes, or "cpht") at a weighted average diamond valuation of US$180/carat. The project's Inferred Mineral Resources comprise an additional 17.5 Mcarats (31.1 Mtonnes at an average grade of 56 cpht), and targets for further exploration outside of the Mineral Resource statement have been estimated at between 23.5 and 48.5 Mcarats (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht). Within this resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 Mcarats (representing 12.9 mtonnes at an average grade of 29 cpht) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 Mcarats (29.5 to 41.6 Mtonnes at between 23 and 33 cpht) from 290m to 775m in depth. All kimberlites remain open at depth.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.
Qualified Persons
Mr. David Skelton, P.Geo. (QC), P.Geol (AB), Vice President, Project Development for Stornoway is a Qualified Person as defined under National Instrument 43-101 and was responsible for supervising the Renard 65 bulk sample program on the Renard Diamond Project. Mr. Skelton has reviewed and approved the scientific and technical information contained in this release.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Stornoway (SWY.TO) Announces New Agreement to Complete Route 167 Extension
Quebec and Stornoway to Partner on Road Financing and Construction
MONTREAL, QUEBEC--(Marketwire - Nov. 15, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that its wholly-owned subsidiary Les Diamants Stornoway (Canada) Inc. has entered into a Framework Agreement and an associated Letter of Intent (collectively the "Agreement") with the Government of Québec for the financing and completion of the Route 167 Extension under Stornoway's direct management. The Agreement is designed to ensure timely road access to the Renard Diamond Project and the commencement of mine construction during 2013, as previously contemplated. Key features of the new Agreement are as follows:
•Stornoway to assume the completion of segments "C" and "D" of the Route 167 Extension as a single lane mining grade road; and
•Québec to provide Stornoway with an unsecured credit facility of up to C$77m to complete the work, at an annual interest rate of 3.35% percent, amortized over 15 years, with a repayment schedule based upon planned commencement of commercial production at Renard.
In addition, and in support of Stornoway's construction schedule for Renard, Québec has agreed that:
•The Québec Ministère des Transports ("MTQ") shall continue with the construction of a winter road this season as previously planned, providing temporary road access to Renard by March 2013; and
•The Québec Ministère du Développement Durable, de l'Environnement, de la Faune et des Parcs and the MTQ shall transfer all relevant authorizations for Stornoway to commence mining road construction by April 2013.
As a result of the Agreement, Stornoway now anticipates first all-season vehicle access to the Renard project site by the 4th Quarter of 2013, compared to July 2013 previously.
Matt Manson, Stornoway's President and CEO commented: "Today's news represents the removal of a major element of uncertainty over the Renard Diamond Project. With Stornoway now responsible for the completion of the project's access road, we will be in full control of our overall development schedule for the first time. The financing terms that we have negotiated to complete this work are beneficial to Stornoway, and are expected to have a minimal impact on the project's overall valuation and financing capacity. This is an excellent example of government and the mining industry working in partnership to achieve a common goal." Mr. Manson continued: "Since Stornoway's October 29th announcement of the potential for a delay in the completion of the Route 167 Extension, we have moved quickly to re-establish a viable plan for road access to Renard during 2013. The Agreement announced today achieves this, and allows us to continue moving forward with our project financing and development activities. This positive outcome will benefit our shareholders, our community partners and Québec in equal measure."
Construction on the 240km long Route 167 Extension began in February of this year, and is being undertaken in four segments, "A" to "D". Under the terms of the Framework Agreement executed today with the MTQ, the Québec Ministère des Ressources Naturelles ("MRN"), and the Québec Ministère des Finances et de l'Économie ("MFE"), Québec will complete the first 143km of the road over segments A and B as a 70km/hr two-lane gravel highway, as previously planned. Starting in April 2013, Stornoway will commence construction of a 50km/hr single lane mining road over the remaining 97km covered by segments C and D. To facilitate this schedule, the MTQ has committed to complete a winter road by March 2013, allowing temporary access to Renard and the mobilization of fuel, road construction equipment and camps. Given the reduced scope of the mining road that will be built on segments C and D, and the progress that has been made to date on segments A and B, it is expected that this construction plan will allow all-season road access to be available to Renard starting in the 4th Quarter of 2013 and mine construction to commence forthwith. Maintenance costs on segments C and D will be borne by Stornoway, and by Québec on segments A and B.
The cost of a mining road on segments C and D has been estimated by Stornoway at C$77 million, including a 15% contingency. Under the terms of the Letter of Intent between Stornoway and the MFE, this cost will be financed by way of an unsecured credit facility to be provided to Stornoway by the MFE, bearing an annual interest rate of 3.35% and amortized over a fifteen year period. In order to provide additional cost contingency, the MFE is agreeing to provide Stornoway with a second facility, with the right to draw a further C$7.7 million, bearing an annual interest rate of 6.3%, for total credit facilities of up to C$84.7 million. Stornoway's schedule of loan repayments is based upon the schedule of financing and construction of the Renard Diamond Project, commencing upon the attainment of commercial production. Finalisation of these terms is dependent upon the conclusion of a definitive Financing Agreement between Stornoway and the MFE, which is currently under negotiation. Stornoway's obligations under the Framework Agreement are conditional upon the execution of the definitive Financing Agreement.
The Agreement provides for the termination of, and replaces, the two pre-existing agreements between Stornoway and Québec dated August 1st 2011, wherein Stornoway agreed to contribute C$44 million to the construction of the Route 167 Extension at a 6.3% interest rate over 10 years, and up to C$1.215 million per year to the road's maintenance.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Stornoway Executes Mandate Letter With Lead Arrangers for Renard Project Financing
MONTRÉAL, QUEBEC--(Marketwire - Sept. 6, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has entered into a Mandate Letter with seven financial institutions (the "Mandated Lead Arrangers") in connection with a potential senior debt financing for Stornoway's 100% owned Renard Diamond Project. The Mandated Lead Arrangers are Bank of Montreal, Caterpillar Financial, Export Development Canada, Investissement Québec, Nedbank Capital Limited (London Branch), Société Générale (Canada Branch) and The Bank of Nova Scotia. The Mandate Letter establishes the terms under which the Mandated Lead Arrangers have been appointed to arrange senior loans of up to US$475 million. It does not constitute a commitment to underwrite, provide or secure financing, which remains subject to due diligence, the completion of definitive loan documentation, credit and other approvals, and the terms and conditions of the term sheet attached to the Mandate Letter, among other things.
In connection with the Mandate Letter, Bank of Montreal is appointed Administrative Agent and Modeling Bank, Caterpillar Financial is appointed Insurance Agent, Nedbank Capital Limited (London Branch) is appointed Marketing Bank, Société Générale (Canada Branch) is appointed Documentation Agent, and The Bank of Nova Scotia is appointed Technical Agent, Trustee and Account Bank.
Stornoway is pursuing a financing strategy for the Renard Diamond Project based on a combination of senior project debt, equity and financing options tied to future diamond production. The $475 million senior debt financing contemplated by the Mandate Letter is in the context of an overall financing plan that includes provisions for the totality of the project's initial pre-production capital cost, as defined in the November 2011 Feasibility Study, working capital requirements, escalation, financing costs and a pre-arranged contingent cost over-run facility.
Matt Manson, Stornoway's President and CEO commented: "Our objective in financing Renard is to minimize the capital that has to be raised to construct the project, and to minimize the equity portion of that capital. The Mandate Letter announced today is an excellent first step in this direction, and reflects well on the strength of the project and the credentials of Stornoway's operating team. We continue to be greatly assisted by the support of our principal shareholders, in particular DIAQUEM Inc., a subsidiary of Investissement Québec, with whom we entered into a $100 million credit support agreement in April 2011 and who hold a 25% pre-emptive right to subscribe to new equity. With our principal regulatory approvals expected shortly, financing arrangements proceeding and road construction ongoing, Stornoway is well positioned to follow-through on the development of Renard starting next year."
The Mandate Letter contemplates the completion of technical, environmental, social, marketing, insurance, financial and legal due diligence this year, the execution of a commitment letter in Q1 2013, and the completion of definitive documentation in Q2 2013.
Capital Cost Optimization Study
In parallel with its project financing activities, Stornoway has also initiated a study aimed at optimizing the sequencing of capital cost expenditures at Renard. In particular, this study is addressing the potential to initiate underground mining by way of a ramp only, and deferring the development of the shaft until later in the mine life. If successful, this study is expected to result in a substantial saving in the project's initial capital cost while maintaining the overall project description, mine plan and production rate at the expense of a modest operating cost increase. It is expected that this study will be complete by year-end. Its impact on the project's overall debt capacity and initial financing requirements, both of which are subject to change, will be assessed at that time.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway Announces the Successful Completion of the Final Public Hearings for Renard in Mistissini and Chibougamau
Project Permitting on Track for Completion in 2012
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the successful completion of public hearings on the Renard Diamond Project held by the Review Committee ("COMEX") established under the James Bay and Northern Québec Agreement (the "JBNQA"). The COMEX hearings were held in Chibougamau and Mistissini on August 28th and 29th, and are expected to be the final round of public consultation prior to the determination of the project's eligibility to receive its global Certificate of Authorization. The Certificate of Authorization is the principal regulatory approval needed to advance the project to the construction and mining stages, and is expected to be assessed prior to the end of the year.
The Renard Diamond Project falls under the environmental protection regimes of the JBNQA and the Canadian Environmental Assessment Act. The Renard Environmental and Social Impact Assessment ("ESIA") was filed in December 2011 with the Canadian Environmental Assessment Agency and the Québec Ministère du Développement Durable, de l'Environnement et des Parcs. Public hearings on the ESIA, held separately by the federal and Québec regulators, are an important step in the mine permitting process, and are designed to gauge the overall social acceptability of the proposed development. As with the federal consultations held in June, attendance in both communities for the COMEX hearings was considerable, and comments received on the project were overwhelmingly positive.
Since the project was originally discovered, Stornoway and its predecessor companies have demonstrated a commitment to responsible social engagement with the communities most impacted by the proposed development. In March of this year Stornoway entered into an Impacts and Benefits Agreement, the "Mecheshoo Agreement", with the Cree Nation of Mistissini ("CNM") and the Grand Council of the Crees (Eeyou Istchee) / Cree Regional Authority. In July, Stornoway announced a Declaration of Partnership with the communities of Chibougamau and Chapais. Stornoway believes its pro-active approach to community engagement, and the project's strong social acceptability, has been fully appreciated during the mine permitting review process.
The Renard ESIA, as well as the project's Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway's website (www.stornowaydiamonds.com/renard/esia).
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Stornoway to Commence Bulk Sampling of Renard 65 Kimberlite
MONTREAL, QUEBEC--(Marketwire - July 23, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it will shortly commence a 5,000 tonne bulk sample program of the Renard 65 Kimberlite pipe, located at Stornoway's 100% owned Renard Diamond Project in north-central Quebec.
The objective of the bulk sample program is to collect a large enough parcel of diamonds to allow the conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and then, if warranted, to a Mineral Reserve. Five thousand tonnes will be acquired from a previously opened trench where the R65 kimberlite is exposed at surface at its northern extent, and will be processed initially at Stornoway's 10 tonne per hour dense media separation plant located at the project site. Final diamond recovery will be conducted at Stornoway's North Vancouver lab facilities. The program is budgeted at C$2.5million, and is scheduled to be completed by the end of the year. Given previously measured grades at the sampling site, it is expected that approximately 1,000 carats of diamonds will be recovered, which will be sent to Antwerp, Belgium for valuation.
Matt Manson, President and CEO, commented: "The Renard 65 bulk sample program announced today offers the opportunity to add a large tonnage of open pit reserves to the Renard mine plan. Renard 65 is the largest of the project's kimberlites, and although its grade is lower than Renard 2 and 3, its diamond characteristics are similar and it is easily accessible from surface. The cost of developing an open pit at Renard 65 is already included in the Renard Feasibility Study, as a borrow pit for backfill waste required in the underground mine, and as a sump for water management. However, as an Inferred Mineral Resource, ore extracted from this pit is excluded from the Feasibility Study's production schedule. The upgrading of Renard 65's resource classification this year is expected to add value to the project by allowing an immediate expansion of planned processing capacity from 6,000 to 7,000 tonnes per day, and by extending the reserve mine life beyond the current 11 years. Renard has a considerable resource upside potential, and this sampling program will allow us to pursue the project's continued growth as we work towards final project financing."
In November 2011, Stornoway released the first National Instrument ("NI") 43-101 compliant Mineral Reserve estimate for Renard of 18.0 Mcarats (representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes, or "cpht") at a weighted average diamond valuation of US$180/carat. The project's Inferred Mineral Resources comprise an additional 17.5 Mcarats (31.1 Mtonnes at an average grade of 56 cpht), and targets for further exploration outside of the Mineral Resource statement have been estimated at between 23.5 and 48.5 Mcarats (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht). Within this resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 Mcarats (representing 12.9 mtonnes at an average grade of 29 cpht) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 Mcarats (29.5 to 41.6 Mtonnes at between 23 and 33 cpht) from 290m to 775m in depth.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.
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 the communities of Chibougamau and Chapais in the James Bay region of North-Central Québec. In November 2011, Stornoway released the results of a Feasibility Study for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. In March 2012 Stornoway entered into the Mecheshoo Agreement with the Cree Nation of Mistissini and the Grand Council of the Crees (Eeyou Itschee) in respect to the Renard Diamond Project, and joined Chibougamau and Chapais in a Declaration of Partnership in July 2012. Readers are referred to the technical report dated December 29, 2011 for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway Signs Partnership Accord With Chibougamau and Chapais
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 5, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has executed a Declaration of Partnership (the "Declaration") with the communities of Chibougamau and Chapais in the James Bay Region of Québec. The Declaration is a statement of cooperation between the partners for the responsible development of Stornoway's 100% owned Renard Diamond Project based on the principles of environmental protection, social responsibility and economic efficiency. The Declaration was signed in Chibougamau on July 5th by Mme. Manon Cyr, Mayor of Chibougamau, M. Steve Gamache, Mayor of Chapais, and M. Patrick Godin, Chief Operating Officer of Stornoway.
The Declaration provides for the creation of a Renard Liaison Committee that will address issues of mutual interest such as communication, employment, and the economic diversification of local communities. In particular, the committee will oversee initiatives to attract and retain new residents to the towns of Chibougamau and Chapais.
Matt Manson, Stornoway's President and CEO, stated: "The Declaration of Partnership with Chibougamau and Chapais is a further example of the framework of trust, transparency and cooperation with which we seek to develop Québec's first diamond mine. It follows the execution of the Mecheshoo Agreement with the Crees of the James Bay Region in March, which was established on similar principles. For Stornoway, the Declaration is an expression of the importance we place on Chibougamau and Chapais as commercial centers, and future civic partners, for the successful development of Renard."
Manon Cyr, Mayor of Chibougamau stated: "This accord confirms the common bond of cooperation and respect between our two cities and Stornoway in the development of the Renard Project, which has been in existence for several years now. Today's signing marks the beginning of a new phase, allowing us to plan for the future by strengthening the collaboration between the City of Chibougamau and Stornoway."
For his part, Steve Gamache, Mayor of Chapais stated: "The Declaration of Partnership is part of a new era of economic and social development based on respect, mutual trust and a shared understanding of the issues of each partner. The town of Chapais is extremely proud to work with Stornoway Diamond Corporation on the development of this leading diamond mining project."
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway Provides Update on Renard Powerline Study
LONGUEUIL, QUEBEC--(Marketwire - July 4, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to report that it has received the results of a feasibility study on a 161kV powerline to supply grid power to the Renard Diamond Project, Stornoway's 100% owned flagship asset located in north-central Québec.
The powerline study was conducted on behalf of Stornoway by Hydro-Québec, the provincially owned utility. Capital cost is estimated at $173.6 million for a 159 kilometer long line between Renard and the Laforge 1 hydro-electric generating station. The December 2011 Renard Project Feasibility Study contemplates on-site power generation using diesel fueled gensets, with a pre-production capital cost of C$802 million and an average operating cost of C$54.71/tonne. A powerline would represent additional capital cost to the project, but a potential saving in operating cost. Based on a Hydro-Québec tariff "L" of $0.0583/kWh, it is estimated that the operating cost savings would be approximately C$9/tonne based on the operating parameters contained within the Feasibility Study.
The Hydro-Québec powerline has been designed to support multiple users, including potential mine development projects located to the south of Renard. Hydro-Québec will require that Stornoway finance the powerline's cost upfront, and have proposed a capital rebate should these other projects be connected in the future. On this basis, Stornoway estimates that the powerline as currently configured will yield only a marginal net economic benefit to the Renard Project over the initial 11 years of Mineral Reserve-based mine life, but will produce a more positive economic return over the longer mine life that would be achieved should the project's total Mineral Resource be developed.
Consequently, Stornoway will not proceed with the powerline proposal as presented by Hydro-Québec, and will pursue the initial development of Renard based on the diesel fueled genset configuration contained within the Renard Feasibility Study. Stornoway will seek to develop a powerline to Renard on a more cost efficient basis as a second phase capital investment following the completion of mine construction, and based upon the future potential development of the project's large Inferred Mineral Resource and exploration upside.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway Reports Initial 26.1 Million Carat Mineral Resource Estimate for the Qilalugaq Project, Nunavut
MONTREAL, QUEBEC--(Marketwire - June 12, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the filing on SEDAR of a National Instrument ("NI") 43-101 technical report representing the first Mineral Resource estimate for the Q1-4 kimberlite pipe located at Stornoway's 100% owned Qilalugaq Diamond Project in Nunavut, Canada. The Qilalugaq Diamond Project includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes, and has been the focus of ongoing exploration and assessment work by Stornoway since it was optioned and subsequently acquired from BHPB Billiton Diamonds Inc. ("BHPB") in July 2006 and July 2010, respectively.
Highlights of the NI 43-101 technical report include:
•a total Inferred Mineral Resource for the Q1-4 kimberlite pipe of 26.1 million carats from 48.8 million tonnes total content of kimberlite with an average +1 DTC total diamond content of 53.6 carats per hundred tonnes (cpht) extending from surface to a depth of 205m;
•additional resource upside has been identified in the form of a target for further exploration for the Q1-4 kimberlite pipe of between 7.9 to 9.3 million carats from 14.1 to 16.6 million tonnes total content of kimberlite with an average +1 DTC total diamond content of 56.1 cpht, extending from 205m depth to 305m depth.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any target for further exploration is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Matt Manson, President and CEO, commented: "As we focus on the financing and development of the Renard Diamond Project in Québec, we continue to nurture our pipeline projects that represent the company's future growth potential. The Qilalugaq Project, along with the Aviat Project on the Melville Peninsula of Nunavut, is one of our advanced exploration projects where previous work has delineated a large potential inventory of diamonds, but where we have only limited diamond valuation data. The Q1-4 kimberlite complex at Qilalugaq is large, easily accessible from the hamlet of Repulse Bay, and exposed at surface. We are very pleased to have reported such a large maiden mineral resource estimate at a project that, with the long term positive outlook on diamond prices, is becoming increasing compelling."
Qilalugaq Mineral Resource Estimate
The Qilalugaq Project comprises 114,961 hectares of land located on the Rae Isthmus, which connects the Melville Peninsula to mainland Nunavut. BHPB discovered eight kimberlites at Qilalugaq between 2003 and 2005. Stornoway optioned the property in July of 2006, and discovered an additional eight kimberlites between 2006 and 2010. All kimberlites are diamondiferous, and occur within a 26 x 3 km structurally favourable corridor. In July of 2010, Stornoway increased its ownership in Qilalugaq to 100% by providing BHPB with a 3% royalty interest in the project.
The 12.5 hectare Q1-4 kimberlite, the largest kimberlite pipe in the eastern Canadian Arctic, is situated approximately 8 km from tidewater, and less than 9 km from the hamlet of Repulse Bay. Q1-4 is interpreted as a complex, steep-sided, diatreme to root-zone kimberlite, with a lobate external shape. It is comprised of five phases of kimberlite: A28a, A48a, A48b, A61a and A88a, and has been geologically modeled to a depth of 305m below surface (see image: http://tinyurl.com/bqvtk6j). The pipe shape was defined from drill hole data, country rock and kimberlite outcrop exposures, and magnetic geophysical surveys. Kimberlite geology has been determined using detailed logging of drill core and results of petrographic studies and includes massive volcaniclastic kimberlite classified as "tuffisitic" kimberlitic breccia, lesser coherent "hypabyssal" kimberlite, and varying proportions of country-rock xenoliths.
The mineral resource estimate was authored by Geostrat Consulting Inc. ("Geostrat"), and comprises the integration of kimberlite volumes, density, petrology and diamond content-data obtained from 5,133 m of diamond drilling, 2,714 m of reverse circulation (RC) drilling, 2.9 tonnes of samples submitted for microdiamond analysis, 257.7 tonnes of samples submitted for macrodiamond sampling with 59.2 carats of diamonds (2,054 stones) recovered from RC drilling, 7.5 carats of diamonds (205 stones) recovered from surface trenching and 2.36 carats of diamonds (69 stones) recovered from HQ diameter diamond drilling. These data summarize the results of exploration programs conducted on the Qilalugaq Property by BHPB from 2003 to 2005, and by Stornoway from 2006 to 2012.
The technical report recommends proceeding to the collection of a large tonnage surface sample at Q1-4 to establish a diamond price estimate. Stornoway has submitted an application to the relevant regulatory authorities to allow it to pursue this program of work, subject to an investment decision to proceed.
Qualified Persons for the NI 43-101 Report
Mr. David Farrow, P.Geo. (BC) of GeoStrat is the independent Qualified Person responsible for the preparation of the mineral resource estimate section for the Qilalugaq Diamond Project. Ms. Barbara Kupsch, P.Geo. (AB) of Stornoway, a Qualified Person under NI 43-101, is responsible for the preparation of the remaining sections of the technical report and conducted Stornoway's diamond exploration programs for the Qilalugaq Property. Both of these Qualified Persons have reviewed and approved the contents of this press release.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
Matt Manson, President and Chief Executive Officer
Stornoway Announces the Successful Completion of Federal Public Consultations for Renard in Mistissini and Chibougamau
MONTREAL, QUEBEC--(Marketwire - June 8, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the recent successful completion of public consultations on the Renard Diamond Project held by the Canadian Environmental Assessment Agency ("CEAA"), the Department of Fishery and Oceans, Environment Canada and Natural Resources Canada. The consultations were held in Chibougamau and Mistissini between June 5th and 7th to solicit public feedback in relation to the ongoing assessment of the Renard Environmental and Social Impact Assessment ("ESIA") by the federal government regulators. The consultations were well attended, and the responses received were overwhelmingly positive.
The Renard Diamond Project falls under the environmental protection regimes of the Canadian Environmental Assessment Act and the James Bay and Northern Québec Agreement (the "JBNQA"). The Renard ESIA was filed with both the CEAA and the Quebec Ministère du Développement Durable, de l'Environnement et des Parcs ("MDDEP") on December 28, 2011. Public consultations on the ESIA, held separately by the federal and Quebec regulators, are an important step in the mine permitting process, and are designed to gauge the overall social acceptability of the proposed development. It is currently expected that public hearings on Renard to be hosted by the Review Committee of the JBNQA ("COMEX") will be scheduled for later in the summer, making the project eligible to receive its Global Certificates of Authorization thereafter.
The Renard ESIA, as well as the project's Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway's website (www.stornowaydiamonds.com/renard/esia).
Stornoway Announces Establishment of Head Office in Montreal
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the relocation of its head office to Montréal, Québec from North Vancouver, British Columbia, effective immediately. The relocation reflects Stornoway's focus on the successful development of the 100% owned Renard Diamond Project, which is on track to becoming Québec's first diamond mine.
Matt Manson, President and CEO, commented: "Today's announcement represents another step in Stornoway's continuing evolution. Renard is a major undeveloped diamond asset with a significant potential mine life. As we work to develop it, our center of gravity on an operational, administrative, corporate and financial basis is moving eastwards. It now makes sense to consolidate our head office and operating functions in one location. Initially, we expect minimal relocation of staff associated with this announcement. Our exploration team will continue to operate out of North Vancouver, with a mandate to explore all of Canada. However, Montreal will become our platform for expansion as we build our mining team and corporate support staff. We are proud to be able to contribute to the long-established reputation of Montreal as a head office center for the Canadian mining industry."
Stornoway was continued under the Canada Business Corporations Act in October 2011, and will remain incorporated as a federal entity.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
Matt Manson, President and Chief Executive Officer
Stornoway Announces $28.4M Renard Pre-Development Capital Program
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 23, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce a significant pre-development capital program for 2012 at the 100% owned Renard Diamond Project ("Renard") located in north-central Québec. In November 2011 Stornoway released the results of the Renard Feasibility study, which demonstrated an economically viable project with an initial 11 year reserve based mine life, strong operating margins and extensive resource upside. Since this time, Stornoway has filed the project's Environmental and Social Impact Assessment ("ESIA"; December, 2011), announced the start of construction on the Route 167 highway extension project by the Québec Ministère des transports ("MTQ"; February, 2012), announced the signing of an Impacts and Benefits Agreement with the Crees of the James Bay Region (the "Mecheshoo Agreement"; March 2012), and announced the raising of gross proceeds of $40 million in a combination of unsecured debt and new equity (March, April and May, 2012).
Matt Manson, President and CEO, commented: "The pre-development capital program announced today for Renard will maintain our development schedule as we complete final permitting and project financing in 2012. Despite the currently challenging market conditions, we have succeeded in raising the significant capital required to perform this work and we are highly encouraged by the response we have received to date on our larger scale project financing activities. Our objective is to continue hitting our project milestones, this being the most effective way of delivering long term shareholder value."
Patrick Godin, COO, added: "An important part of the 2012 program will be to expand our mine development team based in Longueuil, Mistissini and Chibougamau, Québec. This team has already added considerable mining depth to the company alongside our existing diamond technical team based at our North Vancouver office and plant facility. Our strategy is to build upon our already strong operating credentials, recognizing that strong in-house expertise is an essential element for the successful growth of any diamond mining business."
2012 Engineering Program
Subsequent to the recent financings, Stornoway's board has approved a $28.4 million budget for pre-development work at Renard including detailed engineering and design, site preparation activities and the ordering of long lead items. As a component of this program of work, Stornoway expects to shortly enter into an EPCM contract covering project engineering, procurement and construction management for the project's process plant, water treatment plant, accommodation and maintenance facilities, and site utilities. Stornoway's mining team based in Longueuil Québec will be expanded during the course of the year and will assume responsibility for design of the open pit and underground mine, design of the processed kimberlite containment facility, and security operations. Pre-development engineering on the project's shaft and hoisting facilities will be initiated under separate EPCM contract in the second half of the year.
Permitting Progress Report
The Renard Diamond Project falls under the environmental protection regimes of the James Bay and Northern Québec Agreement (the "JBNQA") and the Canadian Environmental Assessment Act. Stornoway filed the Renard ESIA on December 28th, 2011 with both the Québec Ministère du Développement durable, de l'Environnement et des Parcs (the "MDDEP") and the Canadian Environmental Assessment Agency (the "CEAA"). Two highly successful information sessions on the ESIA were hosted by Stornoway in Chibougamau and Mistissini on March 14th and March 21st respectively, and initial feedback from local communities and the federal and Québec regulators has been positive. Both the Review Committee of the JBNQA ("COMEX") and the CEAA will now hold formal public hearings on the Renard Project, the first of which have been scheduled by the CEAA for June 5th and 6th in Chibougamau and Mistissini. It is currently expected that the COMEX hearings will be scheduled for later in the summer, making the project eligible to receive its Certificates of Authorization thereafter.
Route 167 Construction Progress Report
Vehicle access to the Renard Diamond project will be by way of the Route 167 Extension, a $332 million road development project under the auspices of the MTQ. The MTQ have now awarded contracts for two of four construction segments and tree clearing along the route was initiated in January 2012 on the southernmost segment. Work is progressing well, with only minor delays to the schedule. The MTQ is investigating the development of a full winter road access next year to expedite the all-season road project and maintain the construction schedule. On this basis, Stornoway is maintaining its guidance of construction start-up during 2013 and first ore production by July 2015, as defined within the Renard Feasibility Study.
Project Financing Progress Report
Stornoway is currently pursuing a financing strategy for the Renard project based on a combination of project debt and equity. In April 2011 Stornoway entered into a $100 million credit support agreement with its largest shareholder, DIAQUEM Inc., a subsidiary of Investissement Québec, in connection with the acquisition of DIAQUEM's 50% interest in the Renard Project. At this time, DIAQUEM was also granted a pre-emptive right to subscribe to 25% of any new equity issued. Stornoway's recent financings were undertaken on the basis of 50% debt and 50% equity, with DIAQUEM exercising its pre-emptive right. On the basis of this strong support from its largest shareholder, Stornoway is actively exploring a broad range of financing options available for the project within the commercial bank debt, bond and equity markets, in addition to financing options tied to future diamond supply.
NEWS! SWY raises $15 MIL via PIPE!!
Stornoway Closes its $15 Million Bought Deal Equity Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Stornoway Diamond Corporation (TSX:SWY) (Stornoway" or the "Company") is pleased to announce that it has completed its bought deal equity financing previously announced on March 8, 2012 for aggregate gross proceeds to Stornoway of $15 million (the "Offering"). Scotia Capital Inc. (the "Underwriter"), as sole underwriter, purchased 15 million units (the "Units"), each consisting of one common share of Stornoway and one-half of one common share purchase warrant of Stornoway (a "Warrant"). The Units were sold at a price of $1.00 per Unit. Each Warrant entitles its holder to purchase one common share in the capital of Stornoway at a price of $1.20 per share at any time prior to 5:00 p.m. (Vancouver time) on March 31, 2014. Stornoway granted to the Underwriter an over-allotment option, exercisable in whole or in part, up to 30 days after the completion of the Offering, to purchase up to an additional 2,250,000 Units at a price of $1.00 per Unit. This over-allotment option has not been exercised at the time of this press release.
Stornoway intends to apply the net proceeds of the Offering, after deducting the underwriter's fees and the expenses related to the Offering, to fund pre-development expenditures at the Renard Diamond Project, located in north-central Québec, for the 2012 calendar year and for general corporate purposes.
The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any securities or "blue sky" laws of any state of the United States, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the TSX under the symbol "SWY". Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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.
NEWS! Stornoway Conducts Successful Open Houses in Chibougamau and Mistissini for the Renard ESIA
VANCOUVER, BRITISH COLUMBIA, Mar 22 (MARKET WIRE) --
Stornoway Diamond Corporation (TSX:SWY) is pleased to report that two
very successful open houses were recently held in the communities of
Chibougamau and Mistissini, Quebec, for the purposes of presenting the
findings of the Environmental and Social Impact Assessment ("ESIA") for
the Renard Diamond Project. The Renard ESIA, which was authored by Roche
Ltd. and filed with Quebec and federal regulators on December 28th, 2011,
is a comprehensive document that incorporates many years of social and
environmental data collection and study. Its purpose is to allow the
permitting regulators to properly assess the impact of the project and to
seek input from local stakeholders on the proposed development. To this
end, Stornoway has made available to the public the full text of the
ESIA, and its associated Environmental Baseline Study and project
Restoration Plan, and maintains a pro-active communication strategy to
explain its content, of which the recent open houses are an example.
The open houses were hosted by Stornoway on March 14th in Chibougamau and
on March 21st in Mistissini. Over 200 people attended the two events,
representing both the general public and local municipal, educational or
business development groups. Presentations by members of Stornoway's
mining team, and by representatives from Roche Ltd., covered diamond
mining and extraction techniques, water management, closure and
rehabilitation, waste management, biodiversity conservation, training and
employment, and business development opportunities.
The Renard Diamond Project falls under the environmental protection
regimes of the James Bay and Northern Quebec Agreement (the "JBNQA") and
the Canadian Environmental Assessment Act. The Renard ESIA has been filed
with both the Ministere du Developpement durable, de l'Environnement et
des Parcs of Quebec (the "MDDEP") and the Canadian Environmental
Assessment Agency (the "CEAA"). Subject to a schedule to be established
by the Review Committee of the JBNQA ("COMEX") and the CEAA, it is
currently expected that joint formal, public hearings will be held in the
second quarter of 2012 and, upon the satisfaction of all regulatory
requirements, the project will be eligible for the receipt of Quebec and
federal Certificates of Authorization by the middle of 2012. Once the
provincial and federal administrators have issued authorizations for
project development, final mine permits will be sought from the MDDEP,
the Ministere des Ressources Naturelles et de la Faune, and all relevant
federal authorities. The Renard ESIA describes a limited-footprint
project with modest impacts on the local environment, all of which are
well within existing Quebec and federal standards.
http://www.reuters.com/article/2012/03/22/idUS126030+22-Mar-2012+MW20120322
Stornoway Ventures Ltd (C-SWV) - Street Wire
Stornoway and Northern Empire's Aviat play wakes up
Stornoway Ventures Ltd SWV
Shares issued 16,307,404 Feb 3 2003 close $ 1.06
Monday February 3 2003 Street Wire
Also Northern Empire Minerals Ltd (C-NEM) Street Wire
by Will Purcell
John Robins's Northern Empire Minerals Ltd. and Eira Thomas, Catherine McLeod-Seltzer and Bruce McLeod's Stornoway Ventures Ltd. have come up with two diamondiferous samples from their large Aviat diamond play on the Melville Peninsula in Nunavut, and speculators were quick to hop aboard the bandwagon, as one of the samples combined a significant microdiamond count with a healthy diamond size distribution curve. That was enough to spark buying, and the promising find in a new area likely sent many scurrying to find the new play on their maps. Although the Aviat diamonds are believed to be the first recovered from Melville Peninsula, the Aviat property is located just to the south of a slowly developing play on Baffin Island, not far from a large land position held by De Beers on Baffin Island, and to the north of another large land position acquired by BHP Billiton on the southern portion of Melville Peninsula. Nevertheless, the news seemed to catch the market off guard, as the results had many investors willing to pay more than double what a share had gone for on Friday, as Stornoway hit a high of $1.08 in intraday trading, with Northern Empire managing to better that mark, peaking at $1.10. The first batch of results from Aviat does seem encouraging, helped along by some promising geochemistry, although it will likely take bigger samples and larger diamonds to sustain the story in the months ahead.
Nevertheless, the Aviat project has come a long way since the two companies struck a deal with Mr. Robins and Lawrence Barry's Hunter Exploration Group to acquire the Aviat North and Aviat South properties just a year ago. At the time, it was the Coronation district that was big news with speculators, and there was not much interest in a grassroots diamond project on Melville Peninsula, just southwest of Baffin Island and to the west of Foxe Basin, at the northern end of Hudson Bay. The Aviat project began early last year, with an agreement that gave Stornoway and Northern Empire 35-per-cent stakes in the play, with Hunter retaining a 30-per-cent share. To earn their shares, Stornoway and Northern Empire are required to spend $2-million by the fall of 2005. Since then, the three partners have expanded the scope of the project in a big way, adding an additional 2.25 million hectares of land to the 500,000 hectares that initially comprised the Aviat project.
Hunter had apparently conducted a regional till sampling program over Melville in 2001, and that provided enough hope that the private company picked up a land position and went looking for some public partners. Mr. Robins did not have to do much shopping, as two of the Northair group of companies took up the challenge. That was no great surprise, as Mr. Robins is head of Northern Empire, and he is a director of International Northair as well. Meanwhile, Mr. McLeod, who graduated as a mining engineer from Montana College of Minerals and Technology in 1987, had been prodding Stornoway toward diamonds, first adding Ms. Thomas as a director, and then making her chief executive officer. Ms. Thomas was a geologist just a few years out of the University of Toronto, running an exploration program for her father's Aber Resources Ltd. in 1994, when the company found the four pipes that are now part of the Diavik diamond mine. She is also the president of another diamond hunter, Navigator Exploration Corp., but so far, it is the Stornoway play that has generated the most interest.
Much of the optimism surrounds the diamond counts just obtained from a kimberlite sample taken from a rock outcrop now dubbed AV-1, on the northern part of the property. The partners removed about 186 kilograms of rock for caustic fusion analysis, and the sample yielded 228 diamonds, or about 1,250 stones per tonne, using a 0.106-millimetre-square cutoff. That is a promising number, but it was the presence of some larger macrodiamonds that triggered much of the market's early optimism. Two of the diamonds were longer than two millimetres, and seven of the stones were large enough to remain on a 0.85-millimetre mesh. Stones having that dimension would typically be recovered in a mini-bulk test. In all, 52 of the diamonds remained on a 0.3-millimetre screen, or about 280 stones per tonne, and that was about 23 per cent of the total parcel. The recoveries were promising with the larger stone sizes as well. There were 27 diamonds large enough to be recovered on a 0.425-millimetre screen, or about 145 diamonds per tonne, and that amounted to about 12 per cent of the entire parcel of diamonds recovered. The seven stones larger than the 0.85-millimetre screen worked out to nearly 40 such stones per tonne, and they accounted for 3 per cent of the AV-1 diamond parcel.
All of that compares favourably with a number of other finds that have brought hope to the market, triggering a surge of speculative interest. For example, Diamonds North Resources Ltd. has successfully revived the Victoria Island diamond play with a series of promotable diamond counts from some of its kimberlites. A tiny sample from Sand Piper started the renewed interest in the play, and so far, 83 kilograms of kimberlite have been processed, yielding 148 diamonds, or about 1,750 stones per tonne. Of those, 35 diamonds were large enough to remain on a 0.3-millimetre screen, or about 420 stones per tonne, and that represented about 24 per cent of the parcel. There were 17 stones that clung to a 0.425-millimetre mesh, or about 200 per tonne, and that was a bit better than 11 per cent of the diamonds recovered. With five diamonds larger than a 0.85-millimetre cutoff, or about 60 per tonne, the haul represented a bit over 3 per cent of the diamonds. All of that was quite similar to the size distribution of the diamonds at AV-1. One of the best results from Victoria Island was obtained from the Sculptor kimberlite, where 209 kilograms of kimberlite yielded 254 diamonds, or approximately 1,220 stones per tonne. There were 67 diamonds larger than a 0.3-millimetre screen, or about 320 stones per tonne, and that was about 26 per cent of the parcel. Using a 0.425-millimetre screen, the number dwindled to 34 stones, or about 160 per tonne, accounting for about 13 per cent of the diamond parcel. There were four stones larger than the 0.85-millimetre screen in the Sculptor sample, or about 20 stones per tonne, which was less than 2 per cent of the parcel. One of the Sculptor diamonds was two millimetres long. The Victoria Island results carried Diamonds North's stock to a 94-cent peak early this year, up from the 30-cent mark, where it hovered late last summer.
Although the numbers of diamonds are no match, the diamond size distribution of the AV-1 sample compares well with the results obtained by Diamondex Resources from a northern extension of the main Snap Lake dike, a deposit that is now being developed by De Beers. Diamondex processed just 56.5 kilograms of rock, but it recovered 346 diamonds, or about 6,000 stones per tonne. Of those, 65 were large enough to remain on a 0.3-millimetre screen, which worked out to about 1,150 stones per tonne, representing about 19 per cent of the parcel. That proportion dropped to about 9 per cent using a 0.425-millimetre screen, and to 2 per cent using a 0.85-millimetre cutoff. Based on those recoveries, the AV-1 sample had a more favourable diamond size distribution than the Snap Lake sample obtained by Diamondex, which seemed representative of the dike as a whole. That is clearly encouraging, but Snap Lake had much higher numbers of diamonds than AV-1. The Snap Lake sample contained about 120 stones per tonne larger than the 0.85-millimetre mesh, which was triple what the AV-1 batch produced. All of the samples are too small to provide more than some early clues about the diamond content of AV-1, but still, the initial numbers appear encouraging.
Meanwhile, the partners came up with a second batch of diamonds from a boulder found about two kilometres from AV-1. It is not known if the boulder originated from the AV-1 deposit, and although there does not appear to be a striking similarity in the diamond counts at this stage, that could well be due to the normal statistical variation expected in such tiny samples. The partners tested a 43.2-kilogram batch of rock, recovering 92 diamonds, or about 2,100 stones per tonne. Of those, 11 diamonds were large enough to remain on a 0.3-millimetre screen, or about 12 per cent, and six, or about 7 per cent, clung to a 0.425-millimetre screen. That was the extent of the larger diamonds, but included in the sample were two stones that were at least one millimetre long, and a third stone narrowly missed the mark.
There has been little in the way of hard news from De Beers or BHP concerning their projects, but they were likely attracted to the area by some promising indicator mineral work of their own. De Beers holds more than three million hectares in its Baffin play, which adjoins the expanded Aviat play. De Beers is not new to the Far North however, as it was exploring the area surrounding Somerset Island, about 500 kilometres northwest of the Aviat property. A cluster of kimberlites were found on Somerset Island during the 1960s and 1970s. Although the best of the finds were just marginally diamondiferous, the hunt continued for quite some time, ultimately expanding eastward onto Baffin Island, where Twin Mining Corp. has built a bit of a promotion out of its Freightrain kimberlite on Brodeur Peninsula. A series of mini-bulk tests of Freightrain have produced some grades in excess of 0.20 carat per tonne, and the diamond content has been modelled as high as 0.50 carat per tonne, although that remains an optimistic value at this stage.
The AV-1 outcrop was apparently discovered last summer, when a geologist was going back to one of the sites that had been till sampled in 2001, producing an anomalous result. The greenish outcrop was subsequently determined to be an outcrop of hypabyssal kimberlite on the shore of a lake. The outcrop measures about 40 metres in length and about eight metres wide, but it open in all dimensions, and it will take a drill program to get a notion of the actual geometry of the body, which may be a dike or a pipe. A drill program could well be in the works in the coming months, perhaps as early as this spring. In the meantime, the partners plan to start a ground geophysical survey over AV-1 in the coming weeks, followed by an additional round of till sampling and airborne geophysics over the Aviat property.
The partners spent about $500,000 on the preliminary exploration program last year, and the exploration now in the works will bring Stornoway and Northern Empire closer to fulfilling their $2-million spending requirement. Work does not come cheaply in the Far North, and after Stornoway and Northern Empire spend the required amount, Hunter would have to help out by paying 20 per cent of the costs, although the remaining 10 per cent of its share is carried to production.
After largely ignoring the play, speculators now seem to be expecting great things from Aviat. Stornoway added 64 cents on Monday, closing at $1.06, as nearly four million shares were traded, while Northern Empire gained 60 cents, closing at $1.10, on a volume of nearly five million shares.
(c) Copyright 2003 Canjex Publishing Ltd. http://www.stockwatch.com
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I believe Catherine McLeod of Arequipa fame is also involved. Both have deep pockets and are well connected.
With Eira Thomas reputation at ABER things are spilling over into MEGA buying on SWV & NEM.
Yes Volumes speak loudly that were going much higher!
When has there been this kind of trading in Diamond Stocks?
MPV comes to mind many years ago trading Millions of shares everyday.
Looks like were in for a repeat.
red,
Both SWV and NEM traded like they are going higher. We already know that Coronation airborne and heavy mineral sample results will be coming very soon. There could be more results pending from the Melville too.
I just heard that there will be a televised news conference done by a New York media firm with all national TV networks invited like CNN, NBC, FOX and Canadian networks too. It will feature Eira Thomas of Aber fame who now runs SWV and someone from NEM. National television coverage on a major diamond discovery could blow this stock to the MOON!!! Hang on for the riiiide....
Eira Thomas of ABER FAME
Catherine Mccleod of Arequipa Fame
Put them both together and KA-BOOOOOOOOOOOM
RUMOUR HAS IT
Some more Big Diamonds are coming out soon
WOW what a market response today!Unreal as this has not been seen in years on the Diamond front!
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