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Stornoway Diamond updates mineral reserve, mine plan at Renard project

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Stornoway Diamond updates mineral reserve, mine plan at Renard project

Stornoway DiamondCorp. said March 30 that it has updated the mineral resource estimateas well as the mine plan for its Renarddiamond project in Quebec.

Compared to the January 2013 optimization study, the March 2016updated mine plan pegged a posttax net present value of C$974 million using a 7%discount rate, as of Jan. 1.

The initial CapEx is estimated to be C$775 million, while life-of-mineCapEx is estimated to be C$1.05 billion.

Net revenue is estimated to be at C$4.56 billion, whereas grossrevenue is calculated to be C$5.57 billion.

Life-of-mine has increased to 14 years from the 11 years previouslyestimated.

Average commercial diamond production between 2017 and 2026 isestimated to be 1.8 million carats per year compared with 1.6 million carats peryear estimated earlier.

The study also updated the probable reserve estimate by 25% to22.26 million carats at an average grade of 66.6 carats per hundred tonnes, or cpht.Reserves are derived from 30.2 million carats of indicated resources at 71 cpht,as defined in the September 2015 estimate.

Open pit mineral reserves have increased 107% to 3.96 millioncarats with a commensurate 53% reduction in average grade to 44 cpht.

The project is also estimated to hold additional inferred mineralresources of 13.4 million carats at 54 cpht, and 33.0 million carats to 71.1 millioncarats of nonresource exploration upside at grades ranging from 25 cpht to 168 cpht.All kimberlites remain open at depth.

First ore processing forecast at the mine is expected by September-endfollowed by commercial production, expected by year-end.

Diamond production is forecast at 220,000 carats this year. Meanwhile,diamond production in 2017 is forecast at 1.71 million carats, representing a 39%increase from the previous estimate.

Based on a 15-week schedule from production to sales, the companyforecasts 1.36 million carats of diamond sales in 2017, indicating a 57% increasecompared to the previous plan.