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 road infrastructure.
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.
The current project development schedule (revised in April 2014 for a 12 month delay from the January 28, 2013 Optimization Study) assumes first road access to the project site by the fourth quarter of 2013. Construction began on the project in July 2014 and is expected to continue into the third quarter of 2016. Plant commissioning is scheduled to begin in the second half of 2016 with commercial production achieved in the second quarter of calendar 2017.
The January 28, 2013 press release that announced the Optimization Study incorporated certain design refinements undertaken since the release of the project’s Feasibility Study in November 2011, including the deferral of shaft access for the underground mine and a modified underground mining sequence and draw point design. The Optimization Study also contains an updated financial model incorporating, amongst other things, the terms of the March 2012 Mecheshoo Agreement with the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee), and the Cree Regional Authority, and the November 2012 Renard Mine Road financing agreement with the Government of Québec.
The study outlines a (base case) Net Present Value (“NPV”) of C$683 million at a 7% discount rate and Internal Rate of Return (“IRR”) of 20.3% before taxes and mining duties, and C$391 million and 16.3% after taxes and mining duties. It calculates a revised initial capital cost of C$752 million and a revised operating cost averaging C$57.63/tonne (C$76.63/carat), and an 11 years reserve-based mine life with diamond production averaging 1.6 million carats/annum life of mine, real terms net revenue of C$4,046 million, and a cash operating margin of C$2,693 million (67% compared to 68% in the previous estimate).
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.
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 (picture of diamonds recovered from bulk sampling five carats or larger).
An important aspect of the project's advancement is the "Route 167 Extension" which will allow all-season access to Renard by way of the communities of Chibougamau and Mistissini. Construction began in February of 2012, and was undertaken in four segments, “A” to “D”. The Ministry of Transport Quebec has completed the first 143 km of the road over segments A and B as a 70km/hr two-lane gravel highway (see press release of Feb. 14, 2013). The MTQ also completed the initial winter road access to the project site along sections C and D in March of 2013. All four segments of the road were connected in September 2013, 2 months ahead of schedule. A first for diamond mines operating in Canada, year round road access will allow Renard to be developed and operated with significantly reduced costs and operating risk.
In an era of steadily growing diamond demand and decreasing supply, Renard is one of the best undeveloped diamond deposits in the world today.
|Aug 25, 2014|
Stornoway Provides Renard Project Update
Construction Mobilization Proceeding to Plan
Renard 2 Confirmed to 970M Vertical Depth in Summer Drilling
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|Jul 21, 2014|
Stornoway Awards EPCM Contract To SNC-Lavalin Inc.
Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to announce that it has entered into a contract for Engineering, Procurement and Construction Management (“EPCM”...
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|Jul 10, 2014|
Stornoway Announces Formal Production Decision At Renard
Ground Breaking Ceremony Held in the Presence of Philippe Couillard, Premier of Québec
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This video reflects the mine plan that applied to the December 28, 2012 Feasibility Study and does not include the changes made in the Optimization Study of January 28, 2013.