Stornoway Receives 20yr Mining Lease
Stornoway Receives Renard Mining Lease (ccnm)
MONTREAL, QUEBEC--(Marketwire - Oct. 18, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that the Québec Ministère des Ressources naturelles has issued the Mining Lease for the Renard Diamond Project. The Mining Lease represents the formal transference of mineral title from Québec to Stornoway, and is valid for a period of 20 years.
The Renard Diamond Project falls under the social and environmental protection regimes of the Canadian Environmental Assessment Act and the James Bay and Northern Québec Agreement. The principal regulatory approval required before construction can commence is the global "Certificate of Authorization" issued by the Québec Ministère du Développement Durable, de l'Environnement, de la Faune et des Parcs. Following successful Québec and federal government public hearings in June and August of this year, Stornoway anticipates receipt of the project's Certificate of Authorization shortly.
Matt Manson, Stornoway's President and CEO commented: "The Mining Lease is an important milestone in the mine permitting process in Québec. Its issuance ahead of the project's Certificate of Authorization reflects the broad consensus of support that the project has achieved during the last two years of environmental study and community engagement. We remain on track to achieve regulatory approval for Renard this year."
The Renard Environmental and Social Impact Assessment, as well as the project's Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway's website (www.stornowaydiamonds.com/renard/esia).
About the Renard Diamond Project
The Renard Diamond Project 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. In November 2011, Stornoway released the results of a Feasibility Study for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. Stornoway is a growth oriented company with a world class asset, in one of the world's best mining jurisdictions, in one of the world's great mining businesses.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
Matt Manson, President and Chief Executive Officer