RE:RE:forgot i owned this stock Hello and thank you for being part of the Star Diamond Corp. community. The team has been undergoing extensive conversations about the Fort la Corne Project and wanted to provide a quick reminder of what this exciting project has to offer.
Star Diamond Corporation, through a joint venture arrangement with Rio Tinto Exploration Canada, holds a 25% participating interest in certain mineral dispositions located in the Fort la Corne diamond district of central Saskatchewan, Canada.
These mineral dispositions are located in the Fort la Corne provincial forest of central Saskatchewan, situated some 60 kilometres east of the city of Prince Albert, Saskatchewan, Canada. The Fort la Corne provincial forest is an island forest, surrounded by agricultural land and urban development. Access to the Fort la Corne area is provided by paved highways, a grid gravel road system and an extensive network of forestry roads, passable by four-wheel drive and high clearance two-wheel drive vehicles all year round. The vast extent of, and massive kimberlite volumes contained in, the Fort la Corne Field have been noted since the original discovery of these kimberlites in the late nineteen eighties.
In 2018, Star Diamond Corporation announced the positive results of the independent Preliminary Economic Assessment (“PEA”) on the Star and Orion South Kimberlites. The PEA estimated 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.
PEA Highlights Included:
Total potential plant feed of 470 million tonnes at a weighted average grade of 14 carats per hundred tonnes (“cpht”), containing 66 million carats over the 34 year Life of Mine 2. (“LOM”);
The Base Case scenario (Model diamond price) has an NPV (7%) of $3.3 billion and an IRR of 22% before taxes and royalties, and an after-taxes and royalties NPV (7%) of $2.0 billion with an IRR of 19%;
The Case 1 scenario (High Model diamond price) has an NPV (7%) of $5.4 billion for an IRR of 32% before taxes and royalties;
Pre-production capital cost of $1.41 billion with a total capital cost of $1.87 billion (including direct, indirect costs and contingency) over the LOM and an initial capital cost payback period of 3.4 years.