QUEBEC - Stornoway Diamond Corp. of Vancouver has signed a pre-development agreement (PDA) for its Renard diamond project with the Grand Council of the Crees (Eeyou Istchee)/Cree Regional Authority, the Cree Nation of Mistissini and Diaquem Inc. The Renard project is a 50:50 joint venture of Stornoway and SOQUEM.
The PDA has been developed on the principle of mutual respect between the parties, and the interests of all in seeing the establishment of a successful diamond mining venture at Renard. It provides for business and employment opportunities for the Crees during the period of pre-development activities leading up to a potential production decision at the project, the completion of a comprehensive business and employment capacity study to assess the full potential for Cree business and employment opportunities from an eventual mine, and the creation of a joint communication strategy.
In addition, the PDA provides for Cree assistance in the preparation of an environmental and social impact assessment for Renard, and any other relevant environmental and social assessment studies. The PDA builds upon a record of good faith dialogue between the parties, and contemplates the completion of a subsequent impacts and benefits agreement.
The Renard diamond project is located approximately 250 km north of the community of Mistissini in the James Bay region of north-central Quebec, and falls within the environmental protection regime of the James Bay and Northern Quebec Agreement. In March 2010 Stornoway released the results of a preliminary assessment at Renard that showed the project to have the potential to produce approximately 30 million ct of diamonds over a 25 year mine life. Total capital investment is estimated to be $511 million, with an average operating expenditure of approximately $67 million per year and a workforce of 300 people. Pending the completion of all applicable mine feasibility and environmental and social impact assessments, the receipt of all regulatory approvals, and a positive production decision by the project partners, Stornoway currently anticipates mine production to commence by the end of 2013.
Visit www.StornowayDiamonds.com for the latest news on the Renard project.