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Star Diamond Corp T.DIAM

Alternate Symbol(s):  SHGDF

Star Diamond Corporation is a Canada-based company engaged in the acquisition, exploration and development of mineral properties. Its primary asset is its 100% interest in the Fort a la Corne property, which is located in central Saskatchewan. Its Fort a La Corne Diamond Project includes Star and Orion South Kimberlites. These kimberlites are in close proximity to established infrastructure, including paved highways and the electrical power grid. The Star-Orion South Diamond Project is located within the Fort a la Corne diamond district of central Saskatchewan, Canada. These Fort a la Corne mineral dispositions are located in the Fort a la Corne Provincial Forest, approximately 60 kilometers (km) east of Prince Albert, Saskatchewan. It also holds a 100% interest in the Buffalo Hills Diamond Project, located approximately 400 kilometers northwest of Edmonton, Alberta, Canada. The property covers a total of 21 mineral leases covering an area of approximately 4,800 hectares (ha).


TSX:DIAM - Post by User

Bullboard Posts
Post by disgruntled1on Sep 21, 2003 10:41am
353 Views
Post# 6440547

Reality check

Reality check Earlier posts on project evaluation suggest modelled grades of0.2 ct/t with predicted values of $88-179 (US$) resulting in revenues of $31.00 per tonne of kimberlite. Look back at the results from 2000 and 2001 for 140/141 pipe and we see actual grades of varying but closer to .06 or.07 ct/t. Also modeled values of closer to $33-$52 a carat (for the largest part of the kimberlite body described as mega graded). Using these numbers, we don't get $31.00 revenue but rather $5-$6 (using $12 per tonne to process, there would certainly be no mine in this scenario). Assuming Star is close to 140/141 in overall composition (excluding size), Star may not be economically viable. Certain concentrated areas may have better valuations but nowhere near the 200-500 tonnes. Projections are fine but the ones I have seen here are way too optimistic as are Shore's own. $20 a tonne modelled? doubt it.
Bullboard Posts