Québec Announces Funding For The “Route Des Monts Otish”
March 23, 2009
Stornoway Diamond Corporation (TSX-SWY) is pleased to report that in the recently released Québec provincial budget for fiscal year 2009-2010 an allocation of $698 million dollars has been set aside for two road infrastructure projects in the north of Québec, including the Route des Monts Otish from Chibougamau to the Otish Mountains. The Route des Monts Otish, now known as the Route 167 Extension, is the road development project designed to connect the communities of Chibougamau and Mistissini to the Renard Diamond Project by way of several other prospective mining projects and the proposed Albanel-Témiscamie-Otish Park. The Renard Diamond Project, contained within the Foxtrot Property, is a 50:50 joint venture between Stornoway and SOQUEM INC.
Matt Manson, President and CEO stated, "This announcement of major capital funding for the Route 167 Extension is a significant milestone in the development of the James Bay region of northern Québec. We welcome the proactive and expeditious approach taken by the Government of Québec in the provision of infrastructure support for the region, which will greatly assist the development of what we hope will become Québec's first diamond mine."
Mme. Monique Jérôme-Forget, Minister of Finance and the Minister responsible for Infrastructure, made this announcement in the context of a package of energy and infrastructure measures designed to confront the current economic recession within Québec and in the context of Québec's recently announced "Plan Nord" (see Government of Québec Press Release). Currently, the Route 167 Extension project is the subject of a $1 million pre-feasibility study being carried out by Genivar Inc. under the auspices of Transport Québec. The results of the pre-feasibility study are expected within the second quarter of this year, whereupon a social and environmental impact assessment process is expected to commence.
Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing.
SOQUEM is a wholly-owned subsidiary of Société générale de financement du Québec ("SGF"). The SGF, the Québec industrial and financial holding company, has as its mission to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Québec.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Matt Manson"
President and Chief Executive Officer
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Any statements made regarding a NI 43-101 Preliminary Assessment of a project includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Assessment will be realized. References to NI 43-101 Resource Calculations are Mineral Resources and are not Mineral Reserves and therefore do not have demonstrated economic viability. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.