Stock Symbol: DIAM:TSX
SASKATOON, SK, Jan. 19, 2021 /CNW/ - Star Diamond Corporation
("Star Diamond" or the "Corporation") today announced that Rio
Tinto Exploration Canada Inc. ("Rio Tinto Canada") commenced an
eight hole geotechnical drilling program on and in proximity to the
Orion North Kimberlite in early January
2021.
![Star Diamond Corporation (CNW Group/Star Diamond Corporation) Star Diamond Corporation (CNW Group/Star Diamond Corporation)](https://mma.prnewswire.com/media/1422567/Star_Diamond_Corporation_Geotechnical_Drilling_Program_Underway.jpg)
Star Diamond understands that
Earth Drilling Co. Ltd of Regina
Saskatchewan was contracted to drill an eight-hole program
at four locations, with two holes at each location. The drill rigs
being utilized are capable of sonic drilling to obtain
representative samples of the glacial overburden and core drilling
for the underlying kimberlite or host rock sediments. These rigs
can sample to a depth of 220 metres below surface. Two of the
drilling locations are situated over the Orion North kimberlite and
two drilling locations are just to the south of the Orion North
kimberlite. Star Diamond has been advised that the aim of
this drilling is to investigate the geotechnical properties of the
overburden, kimberlite and host rock sediments., with this
information to be used for future open pit design. Parts of the
Orion North Kimberlite have shallower overburden (of approximately
95 metres) than both the Star and Orion South
Kimberlite.
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
Orion North drilling program by Rio Tinto Canada and expected use
of information from such drilling program; 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 between them, 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