Stock Symbol: DIAM: TSX
SASKATOON, SK, April 13,
2022 /CNW/ - Star Diamond Corporation ("Star
Diamond") is pleased to announce an update on the Fort à la
Corne Joint Venture. Star Diamond is in the process of completing a
review of information presented at the Mar
3-4, 2022, Technical meetings which included topics of
interest consisting of: 1) 'Orbit' project update, 2) Star
Kimberlite trench cutter bulk sampling program results, 3) Diamond
size and quality analysis, 4) Mineability study, 5) Geological
modelling, 6) Community and stakeholder engagement, 7)
Environmental and permitting and, 8) Green energy and carbon
mineralization. This is the first in a series of releases which
will follow once our analysis of the data is complete.
Fort à la Corne Joint Venture ("FalCon Project")
The FalCon Orbit exploration program conducted by Rio Tinto
Exploration Canada Inc. ("RTEC") has resulted in a number of
kimberlites being prioritized for additional diamond evaluation
work. RTEC geologists of the Orbit exploration team have, over the
past few years, used a spectrum of evaluation techniques to review
and prioritize the Fort à la Corne kimberlites outside of the
Star and Orion South Kimberlites, which have already been subject
to extensive evaluation. This program has highlighted the
kimberlites of Orion North (K120,
K147, K148) as having significant potential to add to the FalCon
Project. Orion Centre (K145), Taurus (K150, K118, K122) and K119
stand out in the field as having number of the attributes sought
but require further work to completely evaluate. The locations of
these kimberlites relative to Star and
Orion South are shown on the map, which is available on the
Star Daimond website. RTEC has indicated that it is in the process
of developing additional diamond evaluation work to be conducted on
these kimberlites.
The evaluation techniques used thus far by the Orbit exploration
team to prioritize these Orion
North, Orion Centre and Taurus Kimberlites have
included:
- Componentry method of core logging – where kimberlite texture
and, more specifically, olivine macrocryst size and abundance, are
quantified. These methods were calibrated on the Star
Kimberlite.
- Diamond inclusion studies – to determine dominant diamond
paragenesis found in these kimberlites. The inclusion bearing
diamonds were recovered from the Star Kimberlite and found to be
dominated by calcium saturated peridotitic garnets frequently
associated with lherzolitic mantle.
- Garnet colour study – the relationship between garnet colour
and composition is well known but, in this study, it was important
to define the exact red-purple colour of the Star lherzolitic
diamond inclusions. Garnet populations from other kimberlites were
visually examined for the presence of garnets of this specific
colour.
- Trace element geochemistry – used to characterize specific
indicator mineral populations and is a requirement for the study of
thermobarometry.
- Thermobarometry – mantle peridotitic garnet compositions can be
used to determine the temperature at which they crystallized and
some mantle clinopyroxene compositions can be used to determine
both the pressure and temperature of crystallization. These garnet
and clinopyroxene temperature and pressure values can be used to
determine the pressure (depth) and temperature in the mantle at
which they crystallized. Diamonds are known to crystallize in
relatively narrow temperature (950° - 1,200°C) and pressure (4-6
GPa) windows. The presence of garnets and clinopyroxenes in the
kimberlite that crystallized within these windows usually suggests
the potential for diamonds to have been sampled by the
kimberlite.
- Microdiamond sampling – large (1,000 kg) microdiamond samples
of continuous sequences of drill core that are representative of
the kimberlite.
Using the information above the Orbit geologists determined an
Ore Grade Width Intercept ("OGWI") for each kimberlite that
contained 80 to 100 metre zones of kimberlite with high olivine
macrocryst abundance, significant numbers of diamond stability
field garnets, microdiamond populations with size frequency
distributions equivalent or coarser than the Star kimberlite and
less than 120 metres of overburden. The shallowest overburden depth
is found on Orion North K147 and
K148 (93 metres) followed by Orion
South (100 metres).
These studies have highlighted the kimberlites of Orion North (K120, K147, K148) as satisfying the
OGWI requirements and that these kimberlites will require
additional evaluation work. Orion Centre (K145), Taurus (K150,
K118, K122) and K119 indicate the potential to deliver OGWIs.
George Read, Senior Technical
Advisor of Star Diamond said: "The
Orbit exploration team has shown that there are significant
additional opportunities among the Fort à la Corne kimberlites
to increase the potential ore available to a future diamond mine.
The geological model for Orion North
(K120, K147, K148, K220) contains a significant volume of
kimberlite known to be diamond bearing, as shown by previous large
diameter drilling conducted by Star
Diamond. Additional evaluation work is required to enable
this kimberlite to reach mineral resource status."
About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged
in the acquisition, exploration and development of mineral
properties. Shares of Star
Diamond trade on the Toronto Stock Exchange under the
trading symbol "DIAM". Star Diamond holds, through a joint
venture arrangement with RTEC (a wholly-owned subsidiary of Rio
Tinto), a 25% interest in certain Fort à la Corne kimberlites
(including the Star – Orion South Diamond Project). These
properties 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. Rio Tinto refers to their Fort à la Corne
mineral properties as "Project FalCon". During 2018, Star Diamond announced the positive results of
an independent Preliminary Economic Assessment (the "PEA") on the
Project. The PEA (on a 100% basis) 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 Star
Diamond's "Qualified Persons" under the definition
of NI 43-101.
Caution Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" and/or
"forward-looking information" (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking statements in
this press release include, but are not limited to, statements with
respect to the Fort à la Corne project, potential announcements
concerning data analysis and exploration activities that have been
underway by RTEC over the last two years, anticipated meetings,
budgets and programs of the Joint Venture Management Committee,
expected programs and expenditures to be incurred by RTEC since
November 9, 2019, technical
evaluations by RTEC, and the project's potential to be a
significant contributor to both the local communities and the
broader Saskatchewan economy.
These forward-looking statements are based on Star Diamond's current beliefs as well as
assumptions made by and information currently available to each of
them 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 Star
Diamond, 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
Star Diamond's most recently filed
Annual Information Form, annual and interim MD&A.
Although the management of Star
Diamond consider the assumptions contained in
forward-looking statements to be reasonable based on information
currently available to them, those assumptions may prove to be
incorrect. When making decisions with respect to Star Diamond, investors and others should not
place undue reliance on these statements and should carefully
consider the foregoing factors and other uncertainties and
potential events. Star Diamond does not undertake any
obligation to release publicly revisions to any forward-looking
statement to reflect events or circumstances after the date of this
release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued forward-looking statement constitutes a reaffirmation of
that statement. Continued reliance on forward-looking statements is
at investors' own risk.
SOURCE Star Diamond Corporation