- 2,755 DIAMONDS WEIGHING 178.98 CARATS
RECOVERED
- 15 DIAMONDS GREATER THAN 1 CARAT RECOVERED, INCLUDING
16.96 and 6.35 CARAT "D" COLOUR TYPE IIa DIAMONDS AND 8.05,
3.72, 3.53 and 3.29 CARAT TYPE I DIAMONDS
Stock Symbol: DIAM: TSX
SASKATOON, SK, Dec. 1, 2020 /CNW/ - Star Diamond Corporation
("Star Diamond" or the "Corporation") today announced that a total
of 2,755 diamonds weighing 178.98 carats have been recovered to
date from the seventh (19FALCT005) bulk sample trench excavated on
the Star Kimberlite by Rio Tinto Exploration Canada Inc. ("Rio
Tinto Canada") in 2019.
![Star Diamond Corporation Logo (CNW Group/Star Diamond Corporation) Star Diamond Corporation Logo (CNW Group/Star Diamond Corporation)](https://mma.prnewswire.com/media/1345488/Star_Diamond_Corporation_Star_Diamond_Announces_Initial_Results.jpg)
"We are pleased by the recovery of two larger 16.96 and 6.35
carat D colour Type IIa diamonds from Rio Tinto Canada's seventh
trench," said Ken MacNeill,
President and CEO of Star
Diamond. "Star
Diamond's own underground bulk sampling and large
diameter drilling programs conducted between 2004 and 2009
previously recovered diamonds as large as 49.5 and 45.9 carats from
the Star and Orion South Kimberlites, respectively. We have
been disappointed by Rio Tinto Canada's failure to date to recover
larger diamonds, which we believe is a consequence of its unproven
and inadequately tested extraction and/or diamond recovery
methodologies causing undue diamond breakage. Nevertheless,
the diamonds recovered from the seventh trench continue to
highlight the excellent potential for the recovery of large high
value diamonds from the Star Kimberlite."
Mr. MacNeill continued, "We are also pleased that the initial
results from the first seven reported trenches continue to validate
the grades outlined in our Preliminary Economic Analysis that was
based upon Star Diamond's own prior
underground bulk sampling and large diameter drilling
programs."
The breakdown of the kimberlite intercepted and diamonds
recovered to date from trench 19FALCT005 is detailed in the table
below.
Senior Technical Advisor, George
Read, states: "The seventh trench (19FALCT005) has produced
a total of 15 diamonds ranging from 1.10 carats to 16.96 carats.
The six largest diamonds recovered to date from 19FALCT005 are
16.96, 8.05, 6.35, 3.72, 3.53 and 3.29 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. The 16.96 and 6.35 carat diamonds
have been confirmed as being Type IIa using Fourier transform
infrared spectrometry and their colour has also been confirmed as
D. The recovery of these high colour, Type IIa diamonds in this
bulk sample strengthens the expectation for recovery of large, high
value diamonds in a future producing diamond mine. It is important
to also note that the three large diamonds included in these trench
results were all recovered from a soft EJF kimberlite breccia unit,
from which kimberlite would have been more easily extracted with
minimal mechanical attrition."
Star Diamond has now publicly
reported initial results from seven of the ten bulk sample trenches
excavated by Rio Tinto Canada. 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.
Initial diamond stone and grade results for Trench
19FALCT005:
Kimberlite1 Type
|
Kimberlite
Intercept (metres)
|
Drilled2 Tonnes
|
Carats3
(+1
DTC)
|
Grade4
(cpht)
|
Stones (+1
DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest Stone
(ct)
|
LJF
|
112.00-148.70
|
321.79
|
2.443
|
0.759
|
124
|
0.39
|
0.051
|
EJF
|
148.70-230.30
|
882.05
|
176.536
|
20.01
|
2,631
|
2.98
|
16.961
|
Total
|
118.30
|
1,203.84
|
178.979
|
|
2,755
|
|
|
Notes
- Kimberlite Types: LJF: Late Joli Fou
Kimberlite; EJF: Early Joli Fou Kimberlite. The LJF was 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 Rio Tinto Canada. 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
|
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. 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. 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