TSX - SWY LAST: 0.18 -0.01 -5.41% Vol: 190,998 March 20, 2019

Project Overview

The 100% owned Renard Mine, Stornoway’s flagship asset, is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction began on July 10, 2014, following the completion of a C$946 million project financing transaction, the largest ever for a publicly listed diamond company. Now completed, the mine is the first diamond mine in Québec, and one of only six in Canada, employing approximately 500 people. The project benefits from a large and growing resource, good mining conditions, strong social acceptance, a modest environmental footprint, and the development of direct-to-mine road infrastructure.

Now in commercial production, the mine is expected to produce an average of 1.6 million carats per year over an initial 14-year mine life, representing approximately 1% of global supply. First ore was delivered to the plant approximately 10 weeks ahead of schedule on July 15, 2016. Commercial production was declared on January 1, 2017.

In an era of steadily growing diamond demand and decreasing supply, Renard is one of the best diamond mines in the world today.

Renard’s Social Licence

The Renard Project was constructed under the terms of the March 2012 Mecheshoo Agreement between Stornoway and the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee), the Cree Regional Authority, and the terms of the July 2012 Partnership Agreements with the communities of Chibougamau and Chapais.

The Mecheshoo Agreement provides training, employment and business opportunities for Crees during project construction, operation and closure, as well as setting out social, cultural and environmental principles under which the mine will be managed and respected. The Mecheshoo Agreement also includes a mechanism by which the Cree parties will financially benefit from the success of the project on a long-term basis, consistent with the mining industry’s best practices for engagement with First Nations communities.

All major permits required for the construction period were obtained. The Renard Diamond Project Mining Lease was issued by the Québec Ministère des Ressources naturelles in October 2012 and the Québec Certificate of Authorization was issued by the Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs (“MDDEFP”) in December 2012. The Company received a positive Federal Environmental Assessment decision in July 2013.

Renard and the Plan Nord

An important aspect of the Renard Mine was the Route 167 extension, allowing all-season access to Renard by way of the Chibougamau and Mistissini communities and which has been constructed under the auspices of Québec’s Plan Nord. Construction began in February of 2012, and was undertaken in four segments, “A” to “D”. Under the terms of a November 2012 Framework Agreement between Stornoway and the Government of Québec, Québec completed the first 143 km of road (segments “A” and “B”) as a 70 km/hr two-lane gravel highway and Stornoway undertook the construction of a 50 km/hr single-lane mining road over the remaining 97 km (segments “C” and “D”) as the “Renard Mine Road”. The cost of the Renard Mine Road was initially estimated at $77 million, including a 15% contingency. Under the terms of the December 2012 Financing Agreement between Stornoway and Québec, Stornoway’s road costs have been funded through a credit facility provided to Stornoway bearing a 3.35% interest rate, amortized over a 15-year period. All four segments of the road were connected in September 2013, two months ahead of schedule and 10% below budget. A first for diamond mines operating in Canada, year-round road access will allow Renard to be operated with significantly reduced costs and operating risk.

Renard Mine Construction

The Renard Diamond Project was constructed under an Engineering, Procurement and Construction Management (“EPCM”) agreement between Stornoway and SNC-Lavalin Inc. SNC-Lavalin provided EPCM services for on-site utilities such as the liquefied natural gas power plant, the processing plant building, service buildings, water treatment facilities, and on-site infrastructure. The agreement with SNC-Lavalin contemplated sub-contracted services to be provided by AMEC Americas Ltd. and DRA Americas Inc. for certain specialized engineering and field support services relating to the project’s diamond processing plant and diamond recovery circuits. The total capital cost of site facilities and infrastructure within the scope of the EPCM contract was estimated at approximately C$425 million. Construction under the balance of the project’s C$811 million capital cost was managed by Stornoway’s corporate team based in Longueuil, Québec. In February 2016, management re-baselined the cost and schedule of the project, resulting in a $36 million decrease in capital cost for the project to $775 million and a 5 month improvement in the scheduled date of commercial production to December 31, 2016.




Related Press Releases

March 19, 2019 Stornoway Announces FY2018 Results Release Date
LONGUEUIL, Quebec, March 19, 2019 (GLOBE NEWSWIRE) - Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) expects to release its Fourth Quarter and year end 2018 results prior to market open on March 28, 2019 and will host a conference call for analysts and investors on the same day at 11:00am EDT. A webcast of the conference call will also be available. The details for the call and the webcast are:
Toll Free: (844) 215-3287 International: (209) 905-5939 Conference ID: 6795086 Webcast Link: https://edge.media-server.com/m6/p/wzu2eoib ABOUT THE RENARD DIAMOND MINE The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is...
January 28, 2019 Stornoway Announces Appointment of Vice President, Operations
LONGUEUIL, Quebec, Jan. 28, 2019 (GLOBE NEWSWIRE) - Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to announce the appointment of Mr. Patrick Sévigny to the position of Vice President, Operations, effective immediately.
With more than 25 years of experience in the mining sector, Mr. Sévigny holds a Bachelor’s degree in mining engineering. He joined Stornoway in January 2015 in the role of Manager - Mining Operations at the Renard Mine. In this role, Mr. Sévigny has been a key contributor and leader in the start-up of both open-pit and underground operations. Pat Godin, President and CEO of Stornoway, noted: “Patrick is recognized for his ability to overcome challenges, his innovative approach, his great concern in maintaining harmonious relations with stakeholders and his important advocacy for health and safety. His capacity of bringing a team together, his experience, the respect he demonstrates towards others and his leadership are...
January 21, 2019 Stornoway Announces Two Board Appointments
LONGUEUIL, Québec, Jan. 21, 2019 (GLOBE NEWSWIRE) - Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to announce the appointment of Mr. Hubert T. Lacroix and Ms. Angelina Mehta to the Corporation’s Board of Directors.
Mr. Lacroix has over thirty years of experience in business and law and has a great expertise in corporate governance. Mr. Lacroix served as President and Chief Executive Officer of CBC/Radio-Canada from January 2008 to June 2018, as Special Counsel at Stikeman Elliott from 2005 to 2008, and as Executive Chairman at Telemedia and other companies of its group from 2000 to 2005. His law career was mostly spent at McCarthy Tétrault where, over almost twenty years, he worked in securities and various transactions in financial markets. Over the years, Mr. Lacroix also sat on multiple boards, including that of Cambior, Circo Craft, Donohue, Fibrek, Michelin Canada, Secor, Société d’investissements ITS, Transcontinental, and Zarlink...