TSX: DIAM
SASKATOON, March 4, 2019 /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 the
Corporation has completed a major study into the abundance of Type
IIa diamonds in the diamond parcels recovered from the Star and
Orion South Kimberlites 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. This study confirms
that unusually high proportions of Type IIa diamonds are present in
both the Star (26.5 percent) and the Orion South (12.5 percent)
kimberlites. This study confirms and augments an earlier study of
Type IIa diamonds in the Star Kimberlite (see News Release dated
June 09, 2010).
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Type IIa diamonds are very rare and account for approximately
less than 2 percent of all natural rough diamonds mined from
kimberlites. Only a small number of active diamond mines regularly
produce Type IIa diamonds with the most important of these mines
being Letseng-la-Terae (Letseng Mine) in the Kingdom of
Lesotho. While Letseng is a low
grade (1.5-3 cpht) kimberlite, it is probably the most prolific
source of large high-value Type IIa diamonds, which contribute to
making Letseng a highly economic deposit. The 2010 study on plus
2.7 carat diamonds from Star demonstrates that the Star Kimberlite
has a similar proportion of Type IIa diamonds to Letseng.
The Type IIa diamond counts and the percentage of Type IIa
diamonds for the major Star and Orion South kimberlite units are
documented in the table below.
Star Kimberlite
(Diamonds +11 DTC (0.32 carats) to >10.8 carats)
|
Geological
Unit
|
Number of
Diamonds
Typed
|
Number of
Type
IIa
Diamonds
|
Percentage Type
IIa
Diamonds
|
Early Joli Fou
(EJF) UG
|
3,713
|
986
|
26.6
|
Pense (PPK)
UG
|
722
|
205
|
28.4
|
Cantuar (CPK)
UG
|
961
|
240
|
25.0
|
Total
|
5,396
|
1,431
|
26.5
|
Orion South
Kimberlite (Diamonds +11 DTC (0.32 carats) to >10.8
carats)
|
Geological
Unit
|
Number of
Diamonds
Typed
|
Number of Type
IIa
Diamonds
|
Percentage Type
IIa
Diamonds
|
Early Joli Fou
(EJF) UG
|
1,118
|
125
|
11.2
|
Early Joli Fou
(EJF) LDD
|
445
|
66
|
14.8
|
Pense (P2)
UG
|
309
|
43
|
13.9
|
Total
|
1,872
|
234
|
12.5
|
UG (Underground
Sample) LDD (Large Diameter Drill Sample)
|
As can be seen from the table above, a significant number of
diamonds, from each of the major kimberlite lithologies within both
Star and Orion South, have been analysed and typed. The diamonds
analysed represent a spectrum of diamond sizes from +11 DTC (+0.32
carats) through all of the large stones, up to diamonds of nearly
50 carats. The largest Type IIa diamonds identified include a 49.09
carat stone from Star and a 32.35 carat stone from Orion South. The
most valuable of the Type IIa diamonds from Star is the 11.96 carat
diamond valued at US$11,333 per carat
and the most valuable of the Type IIa diamonds from Orion South is
the 15.88 carat diamond valued at US$2,800 per carat.
Type IIa diamonds contain no nitrogen or boron impurities and
are frequently either top white colours (D, E, F or G) or any shade
of brown. Many pink and brownish-pink diamonds are also Type IIa.
Type IIa diamonds usually have anhedral crystal shape and exhibit a
range of elongated, distorted or irregular morphologies. Most
importantly, many high-value, top colour, large specials (greater
than 10.8 carats) are Type IIa diamonds, which include all ten of
the largest known rough diamonds recovered worldwide, from the 726
carat Jonker to the 3,106 carat Cullinan.
The coarse diamond size frequency distribution for the Star
Kimberlite diamond populations (particularly the Cantuar and Early
Joli Fou kimberlite units), combined with this significant
proportion of Type IIa diamonds, strongly suggests the potential
for the recovery of large (plus 100 carat), high quality
diamonds.
Statistics on the proportions of Type IIa diamonds produced by
diamonds mines are not freely available. However, Bowen et al
(2009) published Type IIa FTIR measurements for 484 plus two carat
diamonds from the Letseng Diamond Mine. The Letseng Mine has a low
grade of some 1.5 to 3 cpht but is highly economic as a result of
its unusually high average diamond price (US$2,131 per carat in 2018). Letseng accounts for
some 30 percent of the world market share of diamonds greater than
25 carats and has produced some of the biggest gem quality diamonds
recovered in the past number of years including the 910 carat
Lesotho Legend, 603 carat Lesotho Promise, the 550 carat Letseng
Star, the 493 carat Letseng Legacy and the 478 carat Light of
Letseng. These are all Type IIa diamonds. The Karowe Mine of Lucara
Diamond Corp. has also produced some record Type IIa diamonds in
the past few years, notably the 1,109 carat Lesedi La Rona, which is the second largest gem
diamond ever recovered, and the 813 carat Constellation, which was
sold for the record price of US$63.1
million.
Fourier Transform Infrared (FTIR) Spectrometry is used to
determine the concentration and aggregation state of nitrogen
within the diamonds using industry standard methods. All analyses
of nitrogen content and aggregation state were carried out at the
Saskatchewan Research Council's ("SRC") high security diamond
facility, with 24-hour video surveillance. The SRC's Geoanalytical
Laboratories is accredited to the ISO/IEC 17025 standard by the
Standards Council of Canada as a
testing laboratory.
Senior Vice President Exploration & Development,
George Read, states: "The presence
of a significant proportion of Type IIa diamonds in the Star and
Orion South Kimberlites greatly increases the potential for the
recovery of large (plus 100 carat), high-value diamonds. Analysis
of the Star and Orion South diamond evaluation parcels indicated a
significant proportion of Type IIa diamonds, some of which are top
white in colour. The presence of two high-value diamond groups
(octahedra and Type IIa) greatly strengthens the future potential
production diamond pricing from the Star and Orion South
Kimberlites."
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 in close proximity to established
infrastructure, including paved highways and the electrical power
grid, which provide significant advantages for future mine
development. Rio Tinto Exploration Canada Inc. ("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.
References (Available on Corporation's website)
Bowen, D.C. Ferraris, R.D. Palmer, C.E. and Ward, J.D.
(2009) On the unusual characteristics of the diamonds from
Letseng-la-Terae kimberlites, Lesotho. Lithos Vol. 112S pp.767 – 774.
Breeding, C.M. and Shigley, J.E. (2009) The "Type"
classification system of diamonds and its importance in gemology.
Gems & Gemology Vol. 45 No. 2 pp. 96 – 111
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, the potential proportion
of Type IIa diamonds in the Star and Orion South kimberlites and
the potential for the recovery of large high quality diamonds.
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