- 3,423 DIAMONDS WEIGHING 199.36 CARATS
RECOVERED
- 14 DIAMONDS GREATER THAN 1 CARAT RECOVERED, INCLUDING
8.59, 6.52 (TYPE IIa), 5.09, 4.04 CARAT DIAMONDS
Stock Symbol: DIAM: TSX
SASKATOON, SK, Jan. 12, 2021
/CNW/ - Star Diamond Corporation ("Star Diamond" or the
"Corporation") today announced that a total of 3,423 diamonds
weighing 199.36 carats have been recovered to date from the tenth
(19FALCT006) 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/1418605/Star_Diamond_Corporation_Star_Diamond_Announces_Initial_Results.jpg)
"We are pleased by the recovery of four larger 8.59, 6.52 (Type
IIa), 5.09, 4.04 carat diamonds from Rio Tinto Canada's tenth
trench," said Ken MacNeill,
President and CEO of Star
Diamond. "The initial results from the ten 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 recovery of
larger diamonds from Rio Tinto Canada's bulk sample program,
including larger Type IIa diamonds, also continues to strengthen
our expectation for recovery of large, high value diamonds in a
future producing diamond mine."
Senior Technical Advisor, George
Read, states: "The tenth trench (19FALCT006) has produced a
total of 14 diamonds greater than 1 carat namely: 8.59, 6.52, 5.09,
4.04, 2.89, 2.10, 1.99, 1.65, 1.45, 1.44, 1.22, 1.21, 1.20 and 1.08
carats, respectively, and all were 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
breakdown of the kimberlite intercepted and diamonds recovered to
date from trench 19FALCT006 is detailed in the table below."
Initial diamond stone and grade results for Trench
19FALCT006:
Kimberlite1
Type
|
Kimberlite
Intercept (metres)
|
Drilled2
Tonnes
|
Carats3
(+1
DTC)
|
Grade4
(cpht)
|
Stones
(+1
DTC)
|
Stones
per
tonne
(+1
DTC)
|
Largest
Stone (ct)
|
LJF
|
111.35-120.90
|
95.57
|
1.71
|
1.79
|
61
|
0.64
|
0.28
|
MJF
|
120.90-160.30
|
405.66
|
25.51
|
6.29
|
721
|
1.78
|
0.82
|
EJF
|
160.30-241.48
|
889.28
|
172.14
|
19.36
|
2,641
|
2.97
|
8.59
|
Total
|
130.13
|
1,390.51
|
199.36
|
|
3,423
|
|
|
Notes
- Kimberlite Types: LJF: Late Joli Fou Kimberlite; MJF: Mid
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
Star Diamond has now publicly
reported initial results from all ten bulk sample trenches
excavated by Rio Tinto Canada in 2019. Until all required work is
completed, including critically important comprehensive diamond
breakage studies, complete sample processing and the necessary
audits of the work, the processing, diamond recovery and reporting
of all diamond results on these ten bulk sample trenches is not
complete. Once all required work is complete, a summary of the
diamond results from the ten trenches will be reported.
As previously disclosed by Star
Diamond, Rio Tinto Canada has provided a binding undertaking
(the "Undertaking"), which was relied upon by the Court of Queen's
Bench for Saskatchewan (Judicial
Centre of Saskatoon) (the "Court")
in its August 10, 2020 decision
involving the ongoing litigation between Star Diamond and Rio Tinto Canada.
Pursuant to the Undertaking, Rio Tinto Canada has agreed that it
will not call and/or conduct any meeting of the management
committee under the joint venture agreement between Star Diamond and Rio Tinto Canada for a period
of 120 days following Rio Tinto Canada completing the processing,
diamond recovery and reporting of all diamond results on the
samples previously taken from the ten bulk sample trenches
excavated by Rio Tinto Canada in 2019. Star Diamond will vigorously resist any attempt
by Rio Tinto Canada to resile from its obligations pursuant to the
Undertaking.
Initial diamond results reported in this news release are based
on diamond recovery processing conducted by the Saskatchewan
Research Council through Geoanalytical Laboratories Diamond
Services located in Saskatoon
Saskatchewan (the "SRC"). Primary recovery processing
consisted of X-ray transmission (XRT) sorting, X-ray luminescence
(XRL), magnetic separation and grease table recovery
methods. The 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 estimated 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 and other actions to
complete the processing, diamond recovery and reporting of all
diamond results on the samples previously taken from the ten bulk
sample trenches excavated by Rio Tinto Canada in 2019; statements
related to Star Diamond's intention
to enforce the Undertaking; 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 and any future legal proceedings to enforce the Undertaking,
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