Clarification From Stornoway
LONGUEUIL, Quebec, April 12, 2019 — Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is providing clarification regarding recent media articles, stating that its Renard Mine continues to operate. The Corporation did not announce the closure of its Renard Mine, but only the temporary suspension of open pit mining operations at its Renard 65 ore body, one of the 3 ore bodies currently in operation at the Renard Mine, and the only ore body currently mined by open pit. The Renard underground mine, which extracts kimberlite from the Renard 2 and Renard 3 kimberlite pipes, provides approximately 93% of the mine’s total production. Along with the current Renard 65 ore stockpile, this is sufficient to maintain 100% of the planned feed to the process plant. Therefore, this decision does not reduce the carat production of the Renard mine, but allows for the better management of capital resources, by reducing operating costs and deferring certain capital expenditures.
Reacting to news reports and comments in the media today, Patrick Godin, President and CEO of Stornoway, wanted to re-establish the facts while ensuring that Stornoway continued to evaluate the options available to improve its balance sheet and remains confident in the support of its partners.
Mr. Godin wished to remind that the global diamond market is going through a difficult time and that Stornoway’s mine sells its product at a lower price than in previous years and much lower than initially anticipated during the construction of the mine. The challenges faced by the Corporation are mainly due to the significant drop in the price of diamonds in world markets.
With respect to diamond breakage, Mr. Godin reiterates that the level of diamond breakage is now within industry standards following improvements to the recovery process.
“In addition, the company would like to underline the fact that the mine’s operations are stable and we are fortunate to have competent and committed employees, contractors and suppliers,” he continued.
Mr. Godin reminded all the following achievements that have made the Renard Mine an example in terms of social acceptability and sustainable development:
- A socially and economically engaged partner with the Cree and James Bay communities, as well as with many Quebec suppliers;
- A leader recognized for its management and environmental performance;
- A team of more than 700 committed people that are proud to produce diamonds in Quebec.
Disclosure of a scientific or technical nature in this press release was prepared under the supervision of Mr. Patrick Sévigny, P.Eng. (Québec), Vice President, Operations, a “qualified person” under National Instrument (“NI”) 43-101.
ABOUT THE RENARD DIAMOND MINE
The Renard Diamond Mine is Québec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project.
ABOUT STORNOWAY DIAMOND CORPORATION
Stornoway is a Canadian diamond exploration and production company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. A growth-oriented company, Stornoway owns a 100% interest in the world-class Renard Mine, Québec’s first diamond mine. The head office of Stornoway is located at 1111 St. Charles Ouest, Bureau 400, Tour Ouest, Longueuil, Québec, J4K 5G4.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ “Patrick Godin”
President and Chief Executive Officer
For more information, please contact Alexandre Burelle (Manager, Investor Relations and Business Development) at 450-616-5555 x2264
or toll free at 1-877-331-2232Pour plus d’information, veuillez contacter Alexandre Burelle (Directeur, Relations avec les investisseurs et développement des affaires) au 450-616-5555 x2264, firstname.lastname@example.org
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