TSX: DIAM
SASKATOON, Nov. 1, 2018 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development of Star Diamond Corporation ("Star
Diamond" or the "Corporation") announces that Rio Tinto Exploration
Canada ("RTEC") has commenced the winter shut down of the Trench
Cutter Sampling Rig, which consists of a Bauer BC 50 Cutter mounted
on a Bauer MC 128 Duty-cycle Crane. Bauer Maschinen GmbH ("Bauer")
and Nuna Logistics Limited ("Nuna") are in the process of
winterizing the Trench Cutter Rig and the desanding plant. The
winterizing includes the removal of pumps, motors and electronics
that will be stored in heated sea containers on the site of the
Star Kimberlite for the winter months. 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.
The Trench Cutter bulk sample drilling was successfully
initiated in early October and the first hole reached a depth of
37.1 metres below surface. The Trench Cutter Sampling Rig
successfully excavated the sand and till overburden and returned a
substantial proportion of large (up to 80 millimetre) fragments
from the till. The encouraging performance of the Trench Cutter
Sampling Rig was unfortunately constrained by the commissioning of
the desanding plant, which did not operate at design capacity. The
design and construction of the desanding plant are being evaluated
by RTEC with the intent that the desanding plant will be revised or
replaced by the time that RTEC's on-site bulk sample processing
plant is commissioned in spring of 2019.
The final components of the bulk sample processing plant have
been shipped, by sea, from South
Africa. All containers of bulk sample processing plant
equipment are scheduled to reach Montreal, Canada in early December 2018. The Tomra X-Ray Transmission
("XRT") diamond sorter has already been delivered and is currently
being stored off-site in heated storage until it such time that it
will be delivered to site, for incorporation in the plant, in early
2019. The construction of a heated, on-site sample storage facility
has been permitted and is scheduled to commence in late
November 2018.
Senior Vice President Exploration and Development, George Read, states: "The successful operation
of, and overburden excavation by, the Trench Cutter Sampling Rig
bodes well for the future sampling of kimberlite. RTEC has
indicated that the construction of the bulk sample processing plant
and revisions to the desanding plant are scheduled to be completed
during the winter in preparation for the recommencement of Trench
Cutter bulk sampling on the Star Kimberlite in spring of 2019."
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 Project recently received provincial
approval by the Saskatchewan Ministry of Environment (see News
Release dated October 25, 2018),
along with a previous positive Federal environmental decision).
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).
RTEC refers to Star Diamond's
mineral dispositions in the Fort à la Corne diamond district as
Project FalCon.
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 contained or implied 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, after-tax payback
period, tonnes of kimberlite to be mined, carats per tonne to be
recovered (grade), diamond prices, project life, life of mine,
capital costs, and length of pre-production period as well as
statements with respect to environmental permitting and approvals,
the timing for revision or replacement of the desanding plant,
timing for delivery and construction of the bulk sample processing
plant, timing of construction of heated storage on-site and timing
for recommencement of the bulk 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