Jan 4 News - 43-101 report filed
Stornoway Files NI 43-101 Technical Report for the Renard Feasibility Study
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Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the filing on SEDAR of a National Instrument (“NI”) 43-101 technical report representing the qualifying report for the recently-announced Feasibility Study at the Renard Diamond Project located in North-Central Québec. Highlights of the Feasibility Study, previously reported by Stornoway on November 16, 2011, are as follows:
- Base case estimates of Net Present Value (“NPV”) of C$672 million at a 7% discount rate and Internal Rate of Return (“IRR”) of 18.7% before taxes and mining duties, and C$376 million and 14.9% after taxes and mining duties.
- Probable Mineral Reserves of 18.0 million carats representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes (“cpht”), after allowance for mining dilution and ore recovery, and at a weighted average diamond valuation of US$180/carat.
- 11 year reserve-based mine life with maximum diamond production peaking at 2.1 million carats/annum, and averaging 1.7 million carats/annum life of mine.
- Gross revenue, in real terms, of C$4,112 million and operating cash flow of C$2,677 million.
- Initial estimated capital cost of C$802 million, including contingencies.
- An estimated operating cost averaging C$54.71/tonne ($70.27/carat) life of mine, and yielding an operating margin of 68%.
A copy of the technical report, which was filed on January 3, 2012, will be available on the Stornoway website atwww.stornowaydiamonds.com/renard/feasibility_study
Qualified Persons for the NI 43-101 Report
The qualified persons of the NI 43-101 technical report are Mr. Ab Kroon, P.Eng. of SNC Lavalin Inc., Dr. Lynton Gormely, P.Eng. and Mr. Gary Taylor, P.Eng. of AMEC Americas Limited, Mr. Louis-Pierre Gignac, Eng. of G Mining Services Inc., Mr. Martin Magnan, Eng. of Roche Lte., Mr. Paul Bedell, P.Eng. and Ms. Valérie Bertrand, géo. of Golder Associates Ltd., Dr. Richard Brummer, P.Eng. of Itasca Consulting Canada Inc., Mr. Pierre Therrien, Eng. of Genivar Inc. and Mr. David Farrow, P.Geo. (BC) of GeoStrat Consulting Inc.
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. As detailed in Stornoway’s press release dated November 16th, 2011 (the “FS press release”), current 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 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 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
/s/ “Matt Manson”
Matt Manson
President and Chief Executive Officer
For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754 , toll free at 1-877-331-2232