The Renard Diamond Project is located in the James Bay region of north-central Québec. — Photo courtesy Stornoway Diamonds Stornoway Diamond Corpora
The Renard Diamond Project is located in the James Bay region of north-central Québec. — Photo courtesy Stornoway Diamonds
Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to announce that processing of ore has commenced at the Renard Diamond Project.
This marks the beginning of a processing ramp-up designed to achieve 100% of plant nameplate capacity (2.16Mtonnes/annum at 78% plant utilization) within 9 months. Commercial production at Renard is defined as the maintenance of ore processing for 30 days at 60% of nameplate capacity.
As of July 13, 2016, 1,002,888 tonnes of ore had been stockpiled, sufficient to commence and maintain the planned ramp-up. Initial production is based on ore sourced directly from the Renard 2-Renard 3 open pit and supplemented from the stockpile as required.
Matt Manson, President and CEO, commented: “The commencement of diamond production at Renard comes exactly 2 years and 5 days since we broke ground for mine construction. Our project execution continues to track several weeks ahead of our (already) re-baselined schedule and well within our capital budget. Our focus now turns to the efficient ramping-up of the process plant and the reconciliation of our principal Mineral Resource and mine operating parameters.” Mr. Manson continued: “The kimberlites that form what is now Quebec’s first operating diamond mine were discovered 15 years ago this September by Ashton Mining of Canada and SOQUEM Inc. Over this long period of time a great number of people have worked diligently on the project’s exploration, development, financing and construction. Today’s news could not have been made possible without their talents, dedication, and shared commitment to the project’s success.”
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. On July 8, 2014, Stornoway announced the completion of a $946 million project financing transaction to fully fund the project to production, and construction commenced on July 10, 2014. Processing of ore commenced on July 15, 2016.
In January 2013, Stornoway released the results of an Optimized Feasibility Study at Renard, with an Updated Mine Plan and Mineral Reserve Estimate in March 2016. These studies highlight the potential of the project to become a significant producer of high value rough diamonds over an initial 14 year mine life. Probable Mineral Reserves, as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), stand at 22.3 million carats. In accordance with the Corporation’s September 2015 Mineral Resource estimate, total Indicated Mineral Resources, inclusive of the Mineral Reserve, stand at 30.2 million carats, with a further 13.35 million carats classified as Inferred Mineral Resources, and 33.0 to 71.1 million carats classified as non-resource exploration upside. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining, at an average valuation of US$155/carat based on March 2016 terms.
Readers are cautioned that the potential quality 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. All kimberlites remain open at depth. Readers are referred to the technical report dated February 28, 2013, in respect of the January 2013 Optimization Study, the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project.
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.
