TECHNICAL REPORT OF PRELIMINARY ECONOMIC
ASSESSMENT FILED ON SEDAR
TSX: DIAM
SASKATOON, May 30, 2018 /CNW/ - Star Diamond Corporation
("Star Diamond" or the "Corporation"), is pleased to announce that
the Technical Report of the independent Preliminary Economic
Assessment ("PEA") on the Star and Orion South Kimberlites (the
"Star - Orion South Diamond Project", or "Project") (see News
Release dated April 16, 2018) has
been filed on SEDAR (www.sedar.com). The Technical Report will also
be filed on the Corporation's website (www.stardiamondcorp.com).
The Star and Orion South Kimberlites are situated in the Fort à la
Corne diamond district of central Saskatchewan, Canada, on mineral dispositions
held 100% by Star Diamond. The PEA estimates that 66 million carats
of diamonds could be recovered in a surface mine over a 38-year
Project life, with a Net Present Value ("NPV") (7%) of $2.0 billion after tax, an Internal Rate of
Return ("IRR") of 19% and an after-tax payback period of 3.4 years
after the commencement of diamond production.
The PEA was led by independent mining, processing and design
consultants, with support from the Star Diamond technical team. The
principal consultants include: SGS Canada Inc. - Geostat ("SGS");
DRA Americas Inc. ("DRA"), CSA Global Geosciences Canada Ltd
("CSA") and ENGCOMP Engineering and Computing Professionals Inc.
("ENGCOMP"). A number of other independent consulting firms and
potential vendors also provided their study results to Star Diamond
for use in developing the PEA.
The PEA was authored by the following independent qualified
people: W. Douglas Roy, Senior
Associate Mining Engineer for SGS, a registered Professional
Engineer in the Province of Nova
Scotia; Daniel Leroux, Global
Business Manager – Geological and Mining Services for SGS, a
registered Professional Geoscientist in the Provinces of
Ontario and Saskatchewan; Lehman van Niekerk, Senior
Process Engineer, DRA Projects SA (Pty) Ltd, a registered
Professional Engineer with the Engineering Council of South
Africa and member of The Southern African Institute of Mining
and Metallurgy; Geoffrey Wilkie, Senior Cost Consultant
ENGCOMP, a registered Professional Engineer in the Province of
Saskatchewan, and Leon McGarry, Senior Resource Geologist, CSA
Global Geosciences Canada Ltd, a registered Professional
Geoscientist in the Province of Ontario and Saskatchewan.
About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged
in the acquisition, exploration and development of mineral
properties. Shares of the Corporation trade on the TSX Exchange
under the trading symbol "DIAM". The Corporation's Star - Orion
South Diamond Project is located in central Saskatchewan some 60 kilometres east of the
city of Prince Albert. The Project is in close proximity to
established infrastructure, including paved highways and the
electrical power grid, which provide significant advantages for
future mine development.
All technical information in this press release has been
prepared under the supervision of George
Read, Senior Vice-President of Exploration and Development,
a registered Professional Geoscientist in the Provinces of
Saskatchewan and British Columbia; Mark
Shimell, Project Manager, a registered Professional
Geoscientist in the Province of Saskatchewan; and William van Breugel, Mine Project Engineer, a
registered Professional Engineer in the Province of Saskatchewan, who are the Corporation's
"Qualified Persons" under the definition of NI 43-101.
Star Diamond commissioned the PEA and related Technical Report
for the Star and Orion South Kimberlites and, as such, the PEA and
Technical Report are the sole responsibility of the Corporation.
The PEA is based on exploration and evaluation work conducted up to
and including March 2017.
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements as defined
by certain securities laws, including the "safe harbour" provisions
of Canadian securities legislation and the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
information is often, but not always, identified by the use of
words such as "anticipate", "believe", "expect", "plan", "intend",
"forecast", "target", "project", "guidance", "may", "will",
"should", "could", "estimate", "predict" or similar words
suggesting future outcomes or language suggesting an outlook. In
particular, statements regarding the Corporation's future
operations, future exploration and development activities or other
development plans constitute forward-looking statements. By their
nature, statements referring to mineral reserves, mineral
resources, PEA or TFFE constitute forward-looking
statements.
Forward-looking statements in this press release include, but
are not limited to, disclosure regarding the economics and project
parameters presented in the PEA, including, without limitation,
IRR, NPV and other costs and economic information, carats of
diamonds to be recovered, pre-tax payback period, tonnes of
kimberlite to be mined, carats per tonne to be recovered (grade),
diamond prices, life of mine, capital costs, length of
pre-production period and all data in Tables 1 through 6, possible
events, conditions or financial performance that is based on
assumptions about future economic conditions and courses of action;
the timing and costs of future development and exploration
activities on the Corporation's projects; success of development
and exploration activities; permitting time lines and requirements;
time lines for further studies; planned exploration and development
of properties and the results thereof; and planned expenditures and
budgets and the execution thereof as well as statements with
respect to the Corporation's objectives for the ensuing year.
These forward-looking statements are based on the Corporation's
current beliefs as well as assumptions made by and information
currently available to it and involve inherent risks and
uncertainties, both general and specific.
Risks exist that forward-looking statements will not be achieved
due to a number of factors including, but not limited to,
developments in world diamond markets, changes in diamond prices,
risks relating to fluctuations in the Canadian dollar and other
currencies relative to the US dollar, changes in exploration,
development or mining plans due to exploration results and changing
budget priorities of the Corporation or its partners, the effects
of competition in the markets in which the Corporation operates,
the impact of changes in the laws and regulations regulating mining
exploration, development, closure, judicial or regulatory judgments
and legal proceedings, operational and infrastructure risks and the
additional risks described in the Corporation's most recently filed
Annual Information Form, annual and interim MD&A. The
Corporation's anticipation of and success in managing the foregoing
risks could cause actual results to differ materially from what is
anticipated in such forward-looking statements.
Although management considers the assumptions contained in
forward-looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be
incorrect. When making decisions with respect to the Corporation,
investors and others should not place undue reliance on these
statements and should carefully consider the foregoing factors and
other uncertainties and potential events. Unless required by
applicable securities law, the Corporation does not undertake to
update any forward-looking statement that is made herein.
SOURCE Star Diamond Corporation