Stock Symbol: TSX: DIAM
SASKATOON, SK, Aug. 4, 2020 /CNW/ -Star Diamond Corporation
("Star Diamond" or the "Corporation") announces that a total of
2,517 diamonds weighing 120.1 carats have been recovered from the
first bulk sample trench (19FALCT001) excavated on the Star
Kimberlite. These results are from the first of ten bulk sample
trenches that were excavated by Rio Tinto Exploration Canada Inc.
("RTEC") in 2019 (see News Releases dated June 3, and October 8,
2019). The breakdown of the kimberlite intercepted, and
diamonds recovered from trench 19FALCT001, are detailed in Table 1
below.
![Star Diamond Corporation Logo (CNW Group/Star Diamond Corporation) Star Diamond Corporation Logo (CNW Group/Star Diamond Corporation)](https://mma.prnewswire.com/media/1223590/Star_Diamond_Corporation_Star___Orion_South_Diamond_Project_Prel.jpg)
The average diamond grade from this first trench is similar to
historical diamond grade results detected from the
underground bulk sampling and large diameter drilling ("LDD")
completed on the Star Kimberlite between 2004 and 2009. These
results are also similar to the overall weighted average grade (14
cpht) reported in Star Diamond's
Preliminary Economic Assessment ("PEA") of the Star and Orion South
kimberlites (the "Project") (see News Release dated April 16, 2018).
The three largest diamonds recovered are 3.27, 3.03 and 1.73
carats, respectively, and were all recovered from Early Joli Fou
("EJF") kimberlite. The EJF is the dominant kimberlite unit within
the Project in terms of ore volume and diamond grade. As
further referenced below, there are indications that recent diamond
breakage has occurred in the diamond parcels recovered from
19FALCT001, suggesting that the extraction and/or processing
systems being used by RTEC may be resulting in diamond
breakage. Comprehensive diamond breakage studies will be
required to assess the nature and extent of the diamond breakage
resulting from RTEC's methods and the possibility that larger
diamonds would have been recovered absent such breakage.
Senior Vice President Exploration and Development, George Read, states: "The diamond results from
19FALCT001 provide an early assessment that the trench cutter bulk
sampling method has the potential to replicate grades similar to
the previous underground bulk sampling and LDD performed by
Star Diamond on the Star Kimberlite.
Individual EJF kimberlite samples in this first trench exhibit a
range of grades (4.88 to 23.34 cpht), which are as expected for the
EJF kimberlite."
To date, kimberlite material from four trenches (19FALCT001,
19FALCT00, 19FALCT003 and 19FALCT010) has been processed by RTEC
through the on-site Bulk Sample Plant ("BSP"), with concentrates
forwarded to the Saskatchewan Research Council ("SRC") for final
diamond recovery and reporting. Currently, only the diamond
results for the first trench have been fully reported to
Star Diamond by the SRC. As
reporting to Star Diamond on the
results from additional trenches is completed, Star Diamond looks forward to providing
additional updates. Star Diamond currently expects that all or
substantially all of the bulk samples from the ten sample trenches
collected during 2019 will be processed by RTEC during calendar
2020, provided that there are not any unexpected material delays in
this process including issues arising from COVID-19.
Star Diamond also notes various
ongoing issues arising from RTEC's methods. RTEC is using several
technologies that have not, to the Corporation's knowledge,
previously been used in either bulk sample collecting or processing
involving similar projects. The purpose of applying these new
technologies (including using a Bauer rig to collect bulk samples
and using a Tomra XRT machine to improve diamond detection and to
reduce the size of the samples sent for final diamond recovery) was
to improve the overall diamond grade and reduce diamond
breakage. It appears that, to date, the samples being sent to
the SRC are much larger in volume than had been initially
expected. The sheer volume has caused problems. Further,
some coarse (+6-25 millimetre) kimberlite material from the first
bulk sample trench (19FALCT001) remains unprocessed by RTEC.
The future processing of this potentially diamond bearing material
is presently unknown to Star
Diamond. As referenced above, an initial diamond examination
by the SRC also suggests that some recent diamond breakage has
occurred in the diamond parcels recovered from 19FALCT001.
Comprehensive diamond breakage studies will be required as part of
the assessment of both the extraction and processing systems being
used by RTEC and to determine the efficacy and impact of these
systems including diamond breakage.
Kimberlite was excavated from the first bulk sample trench
(19FALCT001) between 111.0 and 228.4 metres below the surface.
As a result, RTEC sampled and processed some kimberlite units
previously assessed by Star Diamond
as not contributing to the economics of the Project. The trench
cutter has a rectangular profile of 3.250 metres by 1.575 metres
(3.200 by 1.525 metres drill tool plus 25 millimetres all round
overbreak). The trenches were excavated using a Bauer BC 50 Cutter
mounted on a Bauer MC 128 Duty-cycle Crane. Kimberlite excavated by
the cutter bit was pumped to the surface in a slurry, and
kimberlite fragments between +1.0 and 80.0 millimetres were
recovered from the slurry by the Kimberlite Separation Unit
("KSU"). These kimberlite fragments were collected in cubic metre
bulk bags and kept in an on-site storage area by RTEC until such
time, following a number of delays, as RTEC's BSP had been
assembled and commissioned. Kimberlite heavy mineral concentrates
and XRT Accepts produced by the BSP are being delivered by RTEC to
the SRC's Geoanalytical Laboratories located in Saskatoon, Saskatchewan for final diamond
recovery.
Table 1. Diamond stone and grade results provided for each
kimberlite type sampled in Trench 19FALCT001
Kimberlite1
Type
|
Kimberlite
Intercept
(metres)
|
Drilled2
Tonnes
|
Carats3
(+1
DTC)
|
Grade4
(cpht)
|
Stones
(+1 DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest
Stone
(ct)
|
URVKU
|
111.00-116.85
|
56.89
|
0.61
|
1.07
|
29
|
0.51
|
0.02
|
LJF
|
116.85-146.04
|
261.45
|
6.24
|
2.39
|
289
|
1.11
|
0.21
|
MJF
|
146.04-157.70
|
109.82
|
3.58
|
3.26
|
168
|
1.53
|
0.07
|
EJF
|
157.70-228.44
|
778.24
|
109.67
|
14.09
|
2,031
|
2.61
|
3.27
|
Total
|
117.44
|
1,206.40
|
120.10
|
|
2,517
|
|
3.27
|
Notes
1.
|
Kimberlite Types:
URVKU Undifferentiated, reworked volcaniclastic kimberlite units;
LJF: Late Joli Fou Kimberlite; MJF: Mid Joli Fou Kimberlite; EJF:
Early Joli Fou Kimberlite. The URVKU and the LJF were not included
in the Star Diamond PEA mineral resource estimate
|
2.
|
The excavated tonnes
are calculated using theoretical trench volumes and core pilot hole
dry densities provided by RTEC. These are equivalent to dry
tonnes.
|
3.
|
Commercial diamonds
are defined as diamonds that will not pass through a +1 DTC screen,
which has round apertures of 1.09 millimetres
|
4.
|
cpht: diamond grade
in carats per hundred tonnes
|
Diamond results reported in this news release are based on
diamond recovery processing conducted by SRC's Geoanalytical
Laboratories Diamond Services located in Saskatoon
Saskatchewan. Primary recovery processing consisted of X-ray
transmission (XRT) sorting, magnetic separation and grease table
recovery methods. Secondary processing consisted of magnetic
separation, grease table, X-ray luminescence (XRL) sorting and
caustic fusion. SRC is an independent mineral processing
facility which is accredited to the ISO/IEC 17025:2017 standard by
the Standards Council of Canada as
a testing laboratory for specific tests.
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 Toronto
Stock Exchange under the trading symbol "DIAM". The
Corporation's Fort à la Corne kimberlites (including the Star
- Orion South Diamond 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.
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
or PEA constitute forward-looking statements. Forward-looking
statements contained or implied in this press release include, but
are not limited to, the Corporation's expectations regarding the
processing and analysis of, and reporting of results from, the bulk
samples previously collected by RTEC and the timeline for doing
so.
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 RTEC or the Corporation, risks related to the
legal proceedings commenced by the Corporation against RTEC,
including the determination of the Corporation's pending injunction
application by the Court, the effects of competition in the markets
in which Star Diamond operates, the
impact of the COVID-19 pandemic, risks related to the
operation of the BSP and the processing methods being used by RTEC
and the effectiveness thereof, 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, news releases and
technical reports. 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