- 5,161 DIAMONDS WEIGHING 272.59 CARATS RECOVERED
- 27 DIAMONDS GREATER THAN 1 CARAT RECOVERED, INCLUDING 4.08,
3.79, 3.40, 3.39 and 3.20 CARAT STONES
Stock Symbol: DIAM:
TSX
SASKATOON, SK, Nov. 24, 2020 /CNW/ - Star Diamond Corporation
("Star Diamond" or the "Corporation") today announced that a total
of 5,161 diamonds weighing 272.59 carats have been recovered to
date from the fifth (19FALCT008) and sixth (19FALCT009) bulk sample
trenches excavated on the Star Kimberlite by Rio Tinto Exploration
Canada Inc. ("Rio Tinto Canada") in 2019.
"The results from Rio Tinto Canada's bulk sampling program
continue to confirm our belief that the Star - Orion South Diamond
Project has excellent geology with large and contiguous
diamond-bearing kimberlites with a high proportion of valuable Type
IIa stones," said Ken MacNeill,
President and CEO of Star Diamond.
"The initial results from the first six reported trenches also
continue to validate the grades outlined in our Preliminary
Economic Analysis that was based upon Star
Diamond's own underground bulk sampling and large
diameter drilling programs conducted between 2004 and 2009."
Mr. MacNeill continued, "Based upon Star
Diamond's own prior programs, we would have expected to
recover some larger diamonds out of Rio Tinto Canada's work.
However, as recently disclosed by Star
Diamond, Rio Tinto Canada's unproven and inadequately tested
extraction and diamond recovery methodologies appear to be causing
undue diamond breakage. Until critically important and
comprehensive diamond breakage studies are completed, the
processing, diamond recovery and reporting of all diamond results
on the bulk sample trenches excavated by Rio Tinto Canada will not
be complete."
The breakdown of the kimberlite intercepted and diamonds
recovered to date from trenches 19FALCT008 and 19FALCT009 are
detailed in the table below.
Senior Technical Advisor, George
Read, states: "The fifth trench (19FALCT008) has produced a
total of 14 diamonds ranging from 1.01 carats to 4.08 carats. The
four largest diamonds recovered to date from 19FALCT008 are 4.08,
3.40, 3.39 and 3.20 carats, respectively, and were all recovered
from Early Joli Fou ("EJF") kimberlite. The sixth trench
(19FALCT009) has produced a total of 13 diamonds ranging from 1.02
carats to 3.79 carats. The four largest diamonds recovered to date
from 19FALCT009 are 3.79, 2.61, 2.28 and 2.20 carats, respectively,
and were also all recovered from the EJF kimberlite. The EJF is the
dominant kimberlite unit within the Project in terms of ore volume
and diamond grade."
Initial diamond stone and grade results for Trench 19FALCT008
and Trench 19FALCT009
Trench 19FALCT008:
Kimberlite1 Type
|
Kimberlite
Intercept (metres)
|
Drilled2 Tonnes
|
Carats3
(+1
DTC)
|
Grade4 (cpht)
|
Stones
(+1 DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest
Stone
(ct)
|
LJF
|
124.30-137.70
|
119.90
|
1.159
|
0.97
|
66
|
0.55
|
0.03
|
MJF
|
137.70-148.10
|
104.70
|
5.577
|
5.33
|
157
|
1.50
|
0.84
|
EJF
(Ash/Lapilli)5
|
200.10-211.90
|
138.39
|
2.655
|
1.92
|
77
|
0.56
|
0.19
|
EJF
|
148.10-230.80
|
795.36
|
126.786
|
15.94
|
2,412
|
3.03
|
4.08
|
Total
|
106.50
|
1,158.35
|
136.177
|
|
2,712
|
|
4.08
|
Trench 19FALCT009:
Kimberlite1 Type
|
Kimberlite
Intercept (metres)
|
Drilled2 Tonnes
|
Carats3
(+1
DTC)
|
Grade4 (cpht)
|
Stones
(+1 DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest
Stone
(ct)
|
LJF
|
123.20-144.30
|
209.52
|
1.938
|
0.92
|
92
|
0.44
|
0.085
|
EJF
|
144.30-227.91
|
920.44
|
134.475
|
14.61
|
2,357
|
2.56
|
3.789
|
Total
|
104.71
|
1,129.96
|
136.413
|
|
2,449
|
|
|
Notes
1.
|
Kimberlite Types:
LJF: Late Joli Fou Kimberlite; MJF: Mid Joli Fou Kimberlite; EJF
(Ash/Lapilli): EJF fine grained, low grade pyroclastic kimberlite
dominated by lapilli and ash; EJF: Early Joli Fou Kimberlite. The
LJF was 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
|
5.
|
The low grade, fine
grained pyroclastic kimberlite, dominated by lapilli and ash,
within the EJF is an isolated pod of limited lateral
extent.
|
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, X-ray luminescence (XRL), magnetic
separation and grease table recovery methods. 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 Preliminary Economic Analysis (the "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 Technical Advisor, 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 the Corporation's PEA constitute forward-looking statements.
Forward-looking statements contained or implied in this press
release include, but are not limited to, statements regarding the
processing and analysis of, and reporting of results from, the bulk
samples previously collected by Rio Tinto Canada and all timelines;
statements related to diamond breakage; 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; statements
related to mineral resources and/or reserves; statements related to
the approval of the development of the Star - Orion South Diamond
Project; statements relating to future development of the Star -
Orion South Diamond Project and associated timelines; statements
with respect to environmental permitting and approvals; the
Corporation's need for and intention to seek additional financing;
statements with respect to metallurgical investigations,
assessments and test work including Diamond breakage studies; and
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.
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 valuations, 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
Rio Tinto Canada or the Corporation, the effects of competition in
the markets in which the Corporation operates, risks related to the
legal proceedings commenced by the Corporation against Rio Tinto
Canada, the impact of the COVID-19 pandemic, risks related to the
operation of the on-site Bulk Sample Plant and the processing
methods being used by Rio Tinto Canada and the effectiveness
thereof, risks related to diamond breakage and cost overruns and
other consequences arising from Rio Tinto Canada's extraction and
diamond recovery methodologies, risks related to the Corporation's
need for additional financing and the Corporation's ability to
raise that financing, the impact of changes in the laws and
regulations regulating mining exploration and development, 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 the Corporation 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