Stock Symbol:
TSX: DIAM
SASKATOON, SK, Aug. 20, 2020 /CNW/ - Star Diamond Corporation
("Star Diamond" or the "Corporation") announces that a total of
2,409 diamonds weighing 123.27 carats have to date been recovered
from the second bulk sample trench (19FALCT004) excavated on the
Star Kimberlite. These initial results are from the second 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 to date from trench 19FALCT004, are detailed in
Table 1 below. The preliminary results from the first bulk
sample trench were previously disclosed by Star Diamond on August 4,
2020.
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The average diamond grades from the first two trenches are
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 to date from 19FALCT004 are
2.98, 2.03 and 1.99 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 disclosed by Star Diamond on
August 4, 2020, there are indications
that recent diamond breakage has occurred in the diamond parcels
recovered thus far from RTEC's trench cutter bulk sampling program,
suggesting that the extraction and/or processing systems being used
by RTEC may be resulting in diamond breakage. Comprehensive
diamond breakage studies are 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 initial diamond
results from 19FALCT004 and 19FALCT001 continue to show grades
similar to the previous underground bulk sampling and LDD performed
by Star Diamond on the Star
Kimberlite. Individual EJF kimberlite samples recovered in the
first two trenches exhibit a range of grades (9.81 to 21.22 cpht
for 19FALCT004 and 4.88 to 23.34 cpht for 19FALCT001), which are as
expected for the EJF kimberlite."
To date, kimberlite material from five trenches (19FALCT001,
19FALCT004, 19FALCT003, 19FALCT010 and 19FALCT008) has been
processed by RTEC through the on-site Bulk Sample Plant (the
"BSP"), with concentrates forwarded to the Saskatchewan Research
Council ("SRC") for diamond recovery and reporting.
Currently, only the initial diamond results for the first and
second trenches have been reported to Star
Diamond by the SRC.
Star Diamond continues to seek to
engage with RTEC regarding various technical and operational issues
arising from RTEC's processes, including those that were identified
in Star Diamond's August 4, 2020 news release.
Table 1. Initial diamond stone and grade results provided for
each kimberlite type sampled in Trench 19FALCT004
Kimberlite1
Type
|
Kimberlite
Intercept
(metres)
|
Drilled2
Tonnes
|
Carats3
(+1
DTC)
|
Grade4
(cpht)
|
Stones
(+1 DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest
Stone
(ct)
|
URVKU
|
107.76-119.55
|
114.67
|
0.87
|
0.76
|
34
|
0.30
|
0.21
|
LJF
|
119.55-149.57
|
267.20
|
3.96
|
1.48
|
165
|
0.62
|
0.11
|
EJFMUDST
|
153.00-157.87
|
53.60
|
2.08
|
3.88
|
30
|
0.56
|
0.70
|
EJFMUDST
|
162.55-165.05
|
28.54
|
0.21
|
0.74
|
6
|
0.21
|
0.08
|
EJF5
|
149.57-233.89
|
840.34
|
116.15
|
13.82
|
2,174
|
2.59
|
2.98
|
Total
|
126.13
|
1,304.35
|
123.27
|
|
2,409
|
|
2.98
|
Notes
- Kimberlite Types: URVKU Undifferentiated, reworked
volcaniclastic kimberlite units; LJF: Late Joli Fou Kimberlite;
MJF: Mid Joli Fou Kimberlite; EJFMUDST: EJF with significant
mudstone dilution; EJF: Early Joli Fou Kimberlite. The URVKU and
the LJF were not included in the Star Diamond PEA mineral resource
estimate
- The excavated tonnes are calculated using theoretical trench
volumes and core pilot hole dry densities provided by RTEC. These
are equivalent to dry tonnes
- Commercial diamonds are defined as diamonds that will not pass
through a +1 DTC screen, which has round apertures of 1.09
millimetres
- cpht: diamond grade in carats per hundred tonnes
- EJF total excludes two zones of EJFMUDST – mudstone dilution,
which are listed separately
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. During 2018, the Corporation announced the positive
results of an independent 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).
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,
and disclosures regarding the economics and project parameters
presented in the PEA.
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