DIAMOND DEVELOPMENT: Stornoway plunks down $28.4-M for pre-development at Renard

QUEBEC – Stornoway Diamond Corp. of Vancouver has announced it will spend $28.4 million at its wholly owned Renard diamond project for pre-development activities. The company’s board approved a $28.4-million budget to cover detailed...

QUEBEC – Stornoway Diamond Corp. of Vancouver has announced it will spend $28.4 million at its wholly owned Renard diamond project for pre-development activities. The company’s board approved a $28.4-million budget to cover detailed engineering and design, site preparation activities, and the ordering of long lead time items.

Stornoway COO Patrick Godin said, “An important part of the 2012 program will be to expand our mine development team based in Longueuil, Mistissini and Chibougamau, QC. 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”.

The Renard diamond project is located approximately 350 km north of Chibougamau in the James Bay north-central Quebec. In November 2011, Probable reserves stand at 18.0 million ct, with a further 17.5 million ct classified as inferred resources, and 23.5 million to 48.5 million ct classified as non-resource exploration upside. All kimberlites remain open at depth.

Pre-production capital costs stand at $802 million, with a life of mine operating cost of $54.71 per 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 Dec. 29, 2011, technical report dated available at StornowayDiamonds.com for further details and assumptions relating to the project.

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