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Preliminary Economic Assessment Powerpoint Presentation dated October 28, 2008
On October 28, 2008, Stornoway announced the receipt of a positive economic study for the Renard Diamond Project, located at the Foxtrot Property in North Central Québec. The Foxtrot Property is a 50:50 joint venture with SOQUEM INC. ("SOQUEM"). The study comprises 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. An independent Technical Report summarizing the results of the Preliminary Assessment was filed on December 12, 2008 and is available in the Summary of Results section below. A press release announcing the filing of the NI 43-101 technical report was released on December 15, 2008 and outlined the improved Renard economics realized in the technical report.
Highlights from October 28 (Including Improved Economics of the December 15 Press Release)
- A NI 43-101 compliant mineral resource comprising 7.0 million carats of Indicated Resource (11.6 million tonnes at an average grade of 60 carats per hundred tonnes, or "cpht") and 4.5 million carats of Inferred Resource (7.2 million tonnes at an average grade of 63 cpht).
- Project capital cost of C$308 million (including contingency) and average life of mine operating cost of C$50.35/tonne in a conceptual mine plan utilizing both open pit and underground mining.
- An economic assessment based on a base case 5.89 million carat resource with a pre-tax IRR of 14.2% (12.1% after tax), and an NPV of C$56 million (calculated before tax at an 8% discount rate). Pre-tax IRR increases to 17.5% (14.9% after tax), with an NPV of C$93m, based on an economic assessment that applies an alternate, supportable diamond price to the Renard 4 and Renard 9 kimberlite pipes.
- Extensive upside identified in the form of an additional 9 to 21 million carats classified as potential mineral deposit (14 to 32 million tonnes ranging from 31 to 164 carats per hundred tonnes). The reader is cautioned that the potential quantity and grade of any potential mineral deposit is conceptual in nature, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
For details of the Preliminary Assessment, please refer to the following links:
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Property Location |
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Location Maps |
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Summary of Results |
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