TSX: DIAM
SASKATOON, Oct. 5, 2018 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development of Star Diamond Corporation ("Star
Diamond" or the "Corporation") is pleased to announce that Rio
Tinto Exploration Canada ("RTEC") have commenced the drilling of
the first bulk sample hole on the Star Kimberlite using the Trench
Cutter Sampling Rig, which consists of a Bauer BC 50 Cutter mounted
on a Bauer MC 128 Duty-cycle Crane. The Trench Cutter Sampling Rig
is designed to sample large volumes of kimberlite to depths of up
to 250 metres below surface. The Star Kimberlite is located within
the Corporation's Star - Orion South Diamond Project, in the Fort à
la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions
held 100 percent by Star Diamond.
RTEC refers to Star Diamond's
mineral dispositions in the Fort à la Corne diamond district as
Project FalCon.
Bauer Maschinen GmbH ("Bauer") and Nuna Logistics Limited
("Nuna") have a contractual arrangement with RTEC for the
manufacture, supply and operation of equipment to be used for the
bulk sample program. The Trench Cutter Sampling Rig excavates a
rectangular hole of 3.2 by 1.5 metres and each ten metres of
advance down hole, within the kimberlite, will yield some 100
tonnes of sample. The Trench Cutter Sampling Rig's cutter head is
designed to excavate kimberlite fragments up to 80 millimetres in
diameter, which are pumped to surface, directly to a desanding and
bagging plant where the -80 +0.85 millimetre size fraction will be
washed and bagged in preparation for processing plant feed for
diamond recovery. The Trench Cutter Sampling Rig and associated
desanding and bagging circuit have been designed by RTEC to
minimize diamond breakage during sample excavation, washing and
bagging. The desanding plant will remove fine kimberlite particles
and bentonite slurry from the material pumped to surface. Well
washed kimberlite material will help ensure optimal performance of
RTEC's proposed on-site bulk sample processing plant. Final diamond
recovery is to be conducted by RTEC at a secure off-site
facility.
Senior Vice President Exploration and Development, George Read, states: "The commencement of the
Trench Cutter Sampling Rig bulk sample program is an important
milestone in the evaluation of the Star Kimberlite. The successful
use of this new Trench Cutter Sampling Rig technology by RTEC for
the recovery of kimberlite bulk samples, has the ability to
revolutionize future bulk sampling and mining of kimberlites,
particularly those covered by substantial depths of overburden.
RTEC is optimistic that this new and innovative bulk sampling
method will be successful on the Corporation's Star - Orion South
Diamond Project."
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.
The Corporation recently announced the positive results of the
independent Preliminary Economic Assessment ("PEA") on the Project.
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 (see News Release dated April 16, 2018). 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.
During 2017, the Corporation granted RTEC an option to earn up
to a 60% interest in the Corporation's Fort à la Corne mineral
properties (including the Star-Orion South Diamond Project) on the
terms and conditions contained in the Option Agreement (see News
Release dated June 23, 2017).
Completion of the proposed 2018 sampling program (First Option)
does not entitle RTEC to an interest in the Corporation's 100
percent held Fort à la Corne mineral properties (including the
Project).
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 and Mark Shimell, Project Manager, a registered
Professional Geoscientist in the Province of Saskatchewan, who are the Corporation's
"Qualified Persons" under the definition of NI 43-101.
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, 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; specifications and design of the proposed bulk
sampling plant; and planned expenditures and budgets and the
execution thereof as well as statements with respect to RTEC's and
the Corporation's objectives for the ensuing year, including the
proposed sampling program.
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