Star – Orion South Diamond Project Technical Update: Bulk Sample Plant Designed and Ordered
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”), and Consulmet (Pty) Ltd (“Consulmet”) have finalized contractual arrangements for the manufacture and supply of a 30 tonne per hour (“tph”) bulk sample plant. This bulk sample plant will be used to process the kimberlite recovered by the next phase of large diameter, bulk sample drilling on the Star – Orion South Diamond Project (“Project”). The bulk sample plant will be fabricated by Consulmet in South Africa in modular, containerized units, which will facilitate shipment to the Project site in central Saskatchewan. Consulmet is a specialised technology company serving the minerals industry through the design and supply of production ready mineral processing plants.
Bulk Sample Plant
The proposed bulk sample plant will use a modern flowsheet and the latest X-ray transmission (“XRT”) sorting technology to ensure any large diamonds present (up to 25 millimetres) are recovered with minimal breakage. A secondary crushing circuit, using a high pressure rolls crusher (“HPRC”), will maximize the liberation of smaller diamonds from the kimberlite. The bulk sample plant consists of four areas, each with its own control system: 1) a wet front-end and feed preparation area; 2) an XRT sorter area; 3) a 10 tph dense media separator (“DMS”) area; and 4) a water reticulation area.
Washed Run of Mine (“ROM”) kimberlite (-80 millimetres), collected in bulk bags, from Bauer Maschinen GmbH (“Bauer”) BE550 desanding equipment at the drill site, will be supplied to the front-end of the plant. Initial scrubbing and screening sends coarse -80+25 millimetre kimberlite to the jaw crusher, and removes all -0.85 millmetre fines using a slotted screen. Thereafter, -25+12 and -12+6 millmetre kimberlite fractions are processed through the XRT sorter in two simultaneous feeds. The XRT sorter accepts are stored in a secure bin for subsequent diamond recovery. The -25+6 millimetre XRT sorter rejects are sent to a secondary HPRC and the crushed product is returned to the primary feed. The -6+0.85 millimetre kimberlite fraction is processed through the DMS cyclone to prepare a diamond-bearing heavy mineral concentrate. Final diamond recovery is to be conducted at a secure off-site facility. Plant process water is recovered from various de-watering screens within the plant and the fines thickener, and returned to a recycled water storage facility. Fresh and recycled water are used in the primary plant feed. The underflow from the thickener (-0.85 millimetre) is sent as residue to an on-site fines management area (“FMA”).
Senior Vice President Exploration and Development, George Read, states: “Star Diamond Corporation is in complete support of the design and equipment selection for the bulk sample plant. The modern flowsheet and state-of-the-art XRT sorting technology used in this plant will replicate the flowsheet and equipment of the processing plant that would be used on a potential future diamond mine. This bulk sample plant is specifically designed to maximize liberation and recovery of diamonds throughout the -25+0.85 millimetre size range, and minimize diamond breakage, particularly among potential specials (plus 10.8 carat stones) that may be recovered from both the Star and Orion South Kimberlites.”
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
- 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