TSX: DIAM
SASKATOON, Nov. 9, 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 an HQ core drilling program, consisting of eleven holes
and some 3,300 metres of drilling on five kimberlites: K601 (2
holes), K602 (2 holes), K605 (1 hole), K606 (3 holes) and K176 (3
holes). This program is the first phase of drilling of the
Brownfields exploration program to investigate and prioritise the
Fort à la Corne kimberlites outside of the Star and Orion South
kimberlites (see Star Diamond News Release October 25, 2018). The core drilling program is
being conducted by George Downing Estate Drilling Ltd. of
Grenville, Quebec using two drill
rigs. RTEC geologists are responsible for the supervision of the
drilling program and Star Diamond
and RTEC geologists will conduct subsequent detailed core
logging.
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The airborne data acquisition of the recently announced
geophysical survey to collect gravity gradiometer, magnetics and
LiDAR measurements over the Fort à la Corne diamond district (see
Star Diamond News Release October 25,
2018) has been successfully completed.
Senior Vice President Exploration and Development, George Read, states: "While RTEC's work under
the Option Agreement between Star
Diamond and RTEC involves the bulk sampling of the Star and
Orion South kimberlites, this additional Brownfields exploration
program by RTEC aims to investigate and prioritise the
Corporation's other kimberlite bodies in the Fort à la Corne
diamond district. Star Diamond and
other companies had previously completed extensive exploration on
these Fort à la Corne kimberlites, including geophysical surveys,
pattern core drilling, large diameter drilling and micro- and
macrodiamond analyses, which resulted in the documentation of
geological models for a number of these bodies. RTEC is using
current exploration methods, in addition to in-house exploration
methods to reinvestigate the other Fort à la Corne kimberlites to
assess and prioritise them for future exploration and evaluation
work."
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 Fort à la Corne
kimberlites (including the Star - Orion South Diamond Project, or
"Project") are located in central Saskatchewan some 60 kilometres east of the
city of Prince Albert. The Fort à la Corne diamond district 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
and RTEC's and the Corporation's objectives for the ensuing year,
including the proposed bulk sampling and Brownfields programs.
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