Foxtrot (Renard)

• Link to the Renard Preliminary Economic Assessment Page 
• Link to the Renard Project Video

The Renard Project, located within the Foxtrot Property, is a 50:50 JV with SOQUEM INC. ("SOQUEM"). Formed in 1996 to conduct regional reconnaissance scale diamond exploration in north-central Québec, the joint venture currently holds approximately 128,000 hectares of mineral permits in the Otish Mountains region. Exploration on the property has resulted in the discovery of a new field of kimberlitic intrusions, the Renard Cluster, three of which, Renards 2, 3 and 4 underwent bulk sampling in 2007 to generate a 6500 carat parcel for diamond valuation in support of the Preliminary Economic Assessment with ("NI") 43-101 compatible resource estimation that was announced in October 2007.

Recent Developments

On October 28, 2008, Stornoway announced the receipt of a positive economic study for the Renard Diamond Project. The study is comprised of a National Instrument ("NI") 43-101 compliant resource estimate and a diamond processing plant design prepared by AMEC Americas Limited ("AMEC"), and a mine plan, capital and operating cost estimate, and an economic assessment prepared by Agnico-Eagle Mines Limited ("Agnico"). AMEC's plant design, and elements of Agnico's mining study such as the cost estimation, have been completed to a pre-feasibility standard. However, the more conceptual nature of the mine plan, and the inclusion of inferred resource from AMEC's mineral resource estimate in the economic assessment, dictates that the two studies, in combination, comprise a "Preliminary Assessment" under the definitions contained within NI 43-101.  For more information, click here.

As part of the National Instrument ("NI") 43-101 compatible resource estimation (by AMEC Americas) the 2007 bulk sample parcel of diamonds from Renard 2, 3 and 4 were  given updated values on April 29, 2008 by WWW International Diamond Consultants Ltd.  The Renard 2 and Renard 3 diamonds experienced a price increase of 11% and were valued at US$121/carat.  The revised model was generated by WWW restating their own September 2007 valuation result on each diamond parcel on the basis of their March 2008 price book, and applying an adjustment factor to the diamond price model accordingly.   The Renard 4 diamond parcel included an additional 508.6 carats that were not part of the previous valuation and were valued at US$79/carat, representing a 14% price increase.  In addition, WWW  further recommended a modeled "Base Case" diamond price estimate for the Lynx kimberlite dyke of US$66 per carat, with a "High" modeled price estimate of US$97 per carat and a "Low" modeled price estimate of US$56 per carat.  A similar value for  Hibou diamonds was recommended by WWW to be used for planning purposes, based on the 40 carat parcel recovered in January, 2008.

On January 28, 2008 diamond recovery results from a minibulk sample of 30.4 tonnes (dry weight) of the Hibou dike, located 1.3 km northwest of Renard's 2, 3 and 4, were announced.   In total, 39.54 carats of diamonds were recovered representing an overall diamond recovery of 126 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen.  The largest intact diamond recovered was a 1.01 carat light off-colour octahedron.

Diamond recovery results from a 494 tonne sample of the Lynx dike were announed on December 13, 2007, along with additional diamond recovery results from Renard 3 and Renard 4.  A total of 529 carats were recovered resulting in a diamond content of 107 cpht for the sample.  The largest stone weighed 21.53 carats (see photo) and was described as a brown, gem quality octahedron.  The total 588 carat parcel of Lynx diamonds recovered to date will now allow a preliminary estimate of average diamond value to be determined for this dyke system.

Due to the high grade results from the bodies mentioned above, and their location proximal to the Renard cluster, Stornoway is looking into the suitability of the Lynx and Hibou kimberlite dikes to form high grade resources amenable to extraction by shallow stripping or trenching during the early commissioning and ramp-up period of a potential Renard diamond mine.  

On October 22, 2007 Stornoway reported diamond valuation results on 6,432 carats of diamonds from a 6,036 dry tonne sample of the Renard 2, 3, and 4 kimberlite pipes.  The prices, as mentioned above, were amended in April of 2008.

The Renard 4 diamond parcel differs from the other parcels in that it has an apparent relative absence of larger diamonds.  Its lower modeled price estimate is principally a function of this finer diamond size distribution.  Unlike the Renard 2 and 3 samples, which were collected by underground decline across the breadth of each pipe, the Renard 4 sample was collected from a single surface trench excavated within the "northern complex zone", a distinct unit of complex geology outcropping at the northern limit of the Renard 4 kimberlite.  This zone carries a high diamond content and is accessible at surface, but it is not representative geologically of the bulk of Renard 4, which is comprised of a tuffisitic kimberlite breccia with affinities to the "kimb2a" tuffisitic kimberlite breccia observed in Renard 2.  Diamond data suggests the population of diamonds in Renard 4 is the same as in Renard's 2 and 3 and with a more representative sample, the valuations of Renard 4 diamonds will approach that of Renard's 2 and 3.

The joint venture processed an additional 400 tonne sample of Renard 4 northern complex zone material (sample 4003) that was stockpiled during the 2006 bulk sample program and announced the results on December 13, 2007.  

Sample 4003 was processed in order to increase the size of the parcel of diamonds recovered from the Renard 4 NCZ and to assist in determining the exact nature of the Renard 4 NCZ diamond size distribution.  Sample 4003 has a higher average stone size than the previous Renard 4 samples, and a diamond size distribution closer to that exhibited by Renard 2 and Renard 3.  These new data will now be incorporated into the ongoing Renard resource work, which may include a restatement of average diamond value for the Renard 4 kimberlite.

The study is being authored by Agnico-Eagle Mines Limited (TSX: AEM, "Agnico-Eagle") and AMEC Americas Ltd. ("AMEC").  Phase two, which is currently underway will comprise an independent NI 43-101 compliant resource calculation, a mining model, mine design, diamond plant design, capital and operating cost estimation, and financial modeling. 

Final diamond recovery for the Renard 4 kimberlite body were announced on August 14, 2007 and included a total of 2,213 carats of diamonds from five separate sub-samples with a combined dry sample weight of 1,659 tonnes, representing an overall diamond recovery of 133 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen. Diamond recovery from individual sub-samples varied between 80 cpht and 184 cpht, with the largest diamond weighing 5.92 carats.  The reception of these results marked the end of the bulk sample designed to collect a minimum 6000 carat parcel from Renard bodies 2, 3, and 4 for valuation.

On July 25, 2007 Stornoway reported that Phase One of the pre-feasibility study had commenced. Phase one included preliminary geological, geotechnical, environmental and hydro-geological assessment.   

Final diamond recovery results from the Renard 2 kimberlite were released on July 31, 2007.   In total, 1,602 carats were recovered from 2,448.9 tonnes of material.  The largest stone was a 15.46 carat light off-colour gem octahedrom, Quebec's largest diamond (see pictures of Renard 2 stones).  Renard 2 is broken down into two distinct phases:  the 'blue' unit (kimb2a), which yielded a diamond content 48 cpht, and a 'brown' unit (kimb2b), which yielded a diamond content of  111 cpht.  Both units display an incidence of large stones, an important driver of overall rock value.

On June 20, 2007 the final diamond recovery results of the Renard 3 bulk sample were released.  Renard 3 returned a total of 2,681 carats of diamonds from 12 separate sub-samples with a combined dry sample weight of 1,929 tonnes, representing an overall diamond recovery of 139 carats per hundred tonnes (cpht) for stones retained on a +1 Diamond Trading Company (DTC) screen. Diamond recovery from individual sub-samples varied between 78 cpht and 223 cpht, with the largest diamond weighing 10.15 carats (Renard 3 Diamond Photos).  A 13 cpht diamond content increase from earlier sampling campaigns was observed and was most likely due to better recovery and the larger sample size.

The ten tonne per hour DMS test facility was built at the project site in order to facilitate processing of the bulk sample. Site preparation for the DMS commenced in late July 2006 and commissioning commenced in November 2006. The facility will remain on site for processing the remaining material from Renard 2 and 4, and for processing samples collected from kimberlite bodies on the Foxtrot property in the future.

2004 Diamond Valuation

In 2001, a drill program on the Foxtrot property discovered Renard 1 and 2, which proved to be diamondiferous. Programs to 2003 identified an additional eight kimberlites, named Renard 3 to 10. Delineation drilling completed on Renard 5 and 6 during the winter 2003 program established that Renard 5 and 6 constitute one body, now named "Renard 65". As a result, the total number of kimberlites thus far discovered in the Renard cluster stands at nine. All of the Renard bodies are diamondiferous (see Renard diamond data).

Encouraged by the initial diamond results, the joint venture collected more than 600 tonnes of kimberlite from Renard 2, 3, 4, and 65 during 2004. In 2005, processing the 664 tonnes of material recovered 459 carats of diamonds. The valuation of 459 carats of diamonds, completed early in the second quarter of 2005, returned a preliminary modeled value of US$88 per carat.

Diamonds from the Renard cluster (Click for enlarged image)

2004 Tonnage Estimate
The joint venture has also prepared a preliminary model indicating that Renard 2, 3, 4, and 9 contain an estimated 23.2 to 27.5 million tonnes of kimberlite representing approximately 17.6 to 20.9 million carats of diamonds (see summary table).

The estimated tonnage of Renard 2, 3, 4 and 9 and the estimated number of carats contained in these bodies are conceptual in nature, and do not conform to the definition of a "mineral resource" established by National Instrument 43-101. Further exploration will not necessarily provide the basis for determining a mineral resource.

5.66 carat Lynx diamond (Click to see an enlarged image)

Lynx Dyke System

Located two kilometres west of the Renard cluster, the Lynx dyke system is a 3.7 kilometre long zone of continuous or semi-continuous kimberlitic dykes that is oriented along a north-northwest strike. The system is open along strike to the north and south as well as at depth, and incorporates three different zones designated Lynx North, Lynx and Lynx South. The weighted average true width for Lynx South, calculated using data from the 45 holes drilled in this area to date, is 1.8 m.

From 2003 to 2005, more than 14 tonnes of kimberlite boulders identified on surface along Lynx were processed for diamonds. A total of 19.1 carats of diamonds was recovered, for an average estimated diamond content of 135 cpht for the samples (see Lynx DMS data). The largest diamond recovered from Lynx boulders is the one shown above, weighing 5.66 carats.

In 2006, approximately 35 tonnes of kimberlite taken from four trench sites along Lynx were processed by DMS and returned 40.6 carats of diamonds, for an estimated diamond content of 116 cpht.

Other Discoveries

Hibou
Hibou is a dyke that is strategically located approximately 1.3 kilometres west of the Renard cluster and 900 metres east of the Lynx dyke system. It was discovered in 2005 by drilling in the proximity of highly diamondiferous kimberlite boulders (see Hibou diamond results). Hibou is interpreted to have an average thickness of over two metres, a west-northwest strike length of at least 850 metres and an approximate dip of 10 degrees to the north-northeast.

A 9.93 tonne trench sample taken in 2005 and processed by DMS returned 0.86 carats of diamonds larger than 1.18 mm for an estimated diamond content of 8.7 cpht. The DMS results from the trench material did not meet expectations based on the very promising caustic dissolution diamond results from boulders collected down-ice of the dyke. A 100 tonne bulk sampling program is therefore underway in order to more accurately determine the diamond content of the dyke.

North Anomaly dyke
The dyke was discovered in 2005 and is located five kilometres north of the Renard cluster of kimberlitic bodies. The drill data suggest that the dyke has a north-northwest strike length of at least 490 metres, an average thickness of approximately one metre and a dip of 15 to 20 degrees to the west-southwest. The North Anomaly dyke remains open to the north and south and down-dip. In the fall of 2006, a 18.4 tonne sample taken from this body returned 16.7 carats of diamonds for an estimated diamond content of 91 cpht. (see North Anomaly results). Approximately 30 tonnes of material remain to be processed at a later date.

Southeast Anomaly dyke
The Southeast Anomaly dyke is situated approximately three kilometres southeast of Renard 3. A 31.4 kg sample of kimberlite taken from drill core was processed for diamonds by caustic dissolution and returned 65 diamonds. Interpretation of the drill data from three core holes suggests that the dyke has a true thickness of 1.5 m (see Southeast Anomaly results).

A diamondiferous boulder sample was collected approximately 240 metres northwest of the dyke's discovery drill hole. As the direction of glacial dispersion is interpreted to be from the north-northeast, the dyke does not appear to be the source of the boulders. The joint venture plans to conduct further investigation of the dyke and surrounding area through ground geophysical surveys, indicator mineral sampling, prospecting and drilling to determine the width and strike length of the dyke and to locate additional bedrock sources.

Dike Discovery August 2006
A new kimberlite dyke was discovered in outcrop eight kilometres from the Renard cluster of kimberlites. Results from six holes drilled at three setups along a corresponding linear magnetic feature suggest that the dyke has at least a 900 metre north-south strike length and a shallow dip of approximately 11 to 25 degrees to the northeast. The maximum kimberlitic drill intersection to date is 1.5 metres. The dyke remains open to the north and south along strike and down-dip.

A 94.0 kg sample of in situ dyke material was analyzed for diamonds by caustic dissolution and returned 94 diamonds. (see diamond results)

Foxtrot Property Anomalies (Click to see an enlarged image)

Exploration
Having discovered four new dykes in 2005 and 2006, the joint venture believes that additional bodies can be discovered on the Foxtrot property through drilling, geophysical surveying, heavy mineral sampling and prospecting. Exploration programs therefore focus on discovering new kimberlitic bodies by investigating unexplained indicator mineral and boulder anomalies together with continued evaluation of the existing bodies.