Star Diamond Corp.: Star – Orion South Diamond Project Commencement Of 2018 Field Program
Sep 13, 2018
George H. Read, P. Geo., Senior Vice President Exploration and Development of Star Diamond Corporation (“Star Diamond” or the “Corporation”) is pleased to announce that Rio Tinto Exploration Canada (”RTEC”) have initiated field activities and programs in the Fort à la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions held 100 percent by Star Diamond, in preparation for the bulk sample drilling program scheduled to commence on the Star – Orion South Diamond Project in 2018.
The Cutter Soil Mixing (“CSM”) drilling program recently commenced on the Star Kimberlite. This CSM drilling program is intended to stabilise the unconsolidated sand overburden for each of the planned ten bulk sample holes on the Star Kimberlite. Following the stabilisation program, RTEC aim to use a Bauer BC 50 Cutter mounted on a Bauer MC 128 Duty-cycle Crane (“Trench Cutter Sampling Rig “) to drill and sample to depths of up to 250 metres below surface. Each ten metres of advance down hole aims to excavate some 100 tonnes of kimberlite.
Other site activities by RTEC include: the establishment of an on-site 90 person camp, on-site office, communications and security facilities; the upgrading of forest access roads to facilitate the mobilization and transport of the large equipment required for RTEC’s programs; as well as the establishment of lay down areas for the assembly of the CSM drilling equipment, Trench Cutter Sampling Rig and associated bentonite plant and desanding unit, completion of the bentonite recycling area and the preparation of the area for the new sample processing plant.
Senior Vice President Exploration and Development, George Read, states: “Star Diamond Corporation is encouraged by the level of activity on site and the pace at which tasks are being completed in preparation for the bulk sample drilling program on the Corporation’s Star Kimberlite. We have been informed by RTEC that the Trench Cutter Sampling Rig has been manufactured, tested and shipped from Germany to Canada and is currently being assembled on site. RTEC has indicated that it is presently on schedule for commencement of bulk sample drilling during 2018. RTEC has stated that the sample processing plant has been manufactured and tested in South Africa and is currently being shipped to Canada.”
About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Corporation trade on the TSX Exchange under the trading symbol “DIAM”. The Corporation’s Star – Orion South Diamond Project is located in central Saskatchewan some 60 kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.
The Corporation recently announced the positive results of the independent Preliminary Economic Assessment (“PEA”) on the Project. The PEA estimates that 66 million carats of diamonds could be recovered in a surface mine over a 38-year Project life, with a Net Present Value (“NPV”) (7%) of $2.0 billion after tax, an Internal Rate of Return (“IRR”) of 19% and an after-tax payback period of 3.4 years after the commencement of diamond production (see News Release dated April 16, 2018). Star Diamond commissioned the PEA and related Technical Report for the Star and Orion South Kimberlites and, as such, the PEA and Technical Report are the sole responsibility of the Corporation. The PEA is based on exploration and evaluation work conducted up to and including March 2017.
During 2017, the Corporation granted RTEC an option to earn up to a 60% interest in the Corporation’s Fort à la Corne mineral properties (including the Star-Orion South Diamond Project) on the terms and conditions contained in the Option Agreement (see News Release dated June 23, 2017). Completion of the proposed 2018 sampling program (First Option) does not entitle RTEC to an interest in the Corporation’s 100 percent held Fort à la Corne mineral properties (including the Project).
All technical information in this press release has been prepared under the supervision of George Read, Senior Vice-President of Exploration and Development, a registered Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimell, Project Manager, a registered Professional Geoscientist in the Province of Saskatchewan, who are the Corporation’s “Qualified Persons” under the definition of NI 43-101.
For further information: firstname.lastname@example.org or (306) 664-2202 www.stardiamondcorp.com
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