Diamond Fundamentals
The 100% owned Renard Diamond Project, Stornoway’s flagship asset, is located near the Otish Mountains in north-central Quebec and is well on track to becoming Quebec’s first diamond mine. 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 infrastructure under the auspices of Quebec’s “Plan Nord”.
The Renard kimberlite pipes, and the nearby “Lynx Hibou” system of kimberlite dykes, were discovered starting in 2001 following five years of grass roots exploration over an area of more than 400,000 square kilometres of the eastern Archean Superior craton in northern Quebec. Initial exploration was conducted under a joint venture between Ashton Mining of Canada Inc. and SOQUEM inc. Stornoway acquired Ashton in January 2007 and in April 2011 acquired the remaining 50% in the project held by DIAQUEM Inc. a subsidiary of SOQUEM.
A positive feasibility study was announed for the project on November 16, 2011. This mine plan is based on 27 mtonnes (24 mcarats) of National Instrument (“NI”) 43-101 compliant Indicated Mineral Resources in the Renard 2, 3 and 4 kimberlites, which represents the Mineral Resources available for potential conversion to Mineral Reserves.
Separate from the Renard Feasibility Study, Stornoway is developing a Long Term Business Plan (“LTBP”) based on the addition of 31 mtonnes (17 mcarats) of NI 43-101 compliant Inferred Mineral Resources within the scope of the mine infrastructure contained within the Feasibility Study. The LTBP is expected to outline an increased production rate and extended mine life, with underground mine development at Renard 2, 3, 4 and 9 to a maximum 700 meters depth, and an open pit at Renard 65. A significant quantity of non-resource, potential mineral deposit has been identified in addition to the NI 43-101 compliant resources, and all pipes remain open at depth.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are referred to the NI 43-101 compliant technical report dated February 3rd, 2011 with respect to the disclosure of Mineral Resources for the Renard Diamond Project.
On June 13th 2011 Stornoway announced an updated valuation of diamonds recovered from the Renard Diamond Project for use in the financial model of the Feasibility Study. WWW International Diamond Consultants Limited. Determined a base case modeled diamond price estimate of US$182 per carat for the diamond samples from the Renard 2 and 3 kimberlite pipes, an increase of 56% over the previous estimate determined in September 2009.
Analysis of the Renard diamond population has shown a coarse size distribution and a high proportion of large white gems. Based on percentage by weight, 99% of the stones are gem/near-gem quality with just 1% industrial quality boart. This combination of attributes gives a high potential for significant “Specials” to be recovered once the mine is fully operational. This is not accounted for in the current resource work or valuation estimates.
An important aspect of the project's timely advancement will be the "Route 167 Extension", a $330 million road development project sponsored by the Quebec Ministry of Transportation, which will allow all-season access to Renard by way of the communities of Chibougamau and Mistissini. A first for diamond mining in Canada, year round road access will allow Renard to be developed and operated with significantly reduced costs and operating risk. On August 1, 2011, Stornoway was pleased to announce the signing of two financing agreements with the Government of Québec by which Stornoway will contribute to the construction and maintenance costs of the Route 167 Extension over a ten year period commencing in July of 2015. Road construction is expected to commence in the fourth quarter of 2011.
In an era of steadily growing diamond demand and decreasing supply, Renard is one of the best undeveloped diamond deposits in the world today.
| Feb 3, 2012 Stornoway Announces Commencement Of Construction Of Route 167 Extension Stornoway Diamond Corporation (TSX-SWY) is pleased to announce that construction activities have commenced on the Route 167 Extension, the road development project that will provide year round road... |
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| Jan 4, 2012 Stornoway Files Ni 43-101 Technical Report For The Renard Feasibility Study Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the filing on SEDAR of a National Instrument ("NI") 43-101 technical report representing the qualifying report for the recently-announ... |
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| Dec 28, 2011 Stornoway Announces Filing Of The Renard Environmental And Social Impact Assessment Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the completion and filing of an Environmental and Social Impact Assessment (ESIA) for the Renard Diamond Project located in North Cent... |
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Renard Mineral Resource Update - NI 43-101 Technical Report Updated Renard Resource Statement filed February 7, 2011
Updated Preliminary Economic Assessment of the Renard Project NI 43-101 Technical Report - May 5, 2010
Renard Mineral Resource Update - NI 43-101 Technical Report Updated Renard Resource Statement filed January 21, 2010
Renard Diamond Photomontage on Flickr
Renard Project current mine-plan fly-through as of October 20th, 2011 AGM on YouTube (en français)