TSX: SWY
LONGUEUIL, QC, Nov. 5, 2013 /CNW Telbec/ - Stornoway Diamond Corporation (TSX: SWY) today hosted a press event at its Montreal head office in the presence
of Ms. Martine Ouellet, the Québec Minister of Natural Resources, Ms.
Manon Cyr, the Mayor of Chibougamau, and Chief Richard Shecapio, Chief
of the Cree Nation of Mistissini. The event was held to emphasize the
close collaboration between Stornoway, Québec and the communities of
the James Bay region on the development of the Route 167
Extension-Renard Mine Road and the new Monts Otish regional aerodrome.
This work, being undertaken under a financing agreement between
Stornoway and Québec, is successfully laying the groundwork for the
development of the Renard Diamond Project, the first diamond mine in
Québec.
Patrick Godin, Stornoway's Chief Operating Officer, commented: "The
Renard Diamond Project is being done right. From the beginning, we
determined that earning our licence to operate from the region's local
communities and contributing to their economic development would be one
of our top priorities. Our ability to achieve this has been greatly
assisted by a strong partnership with government. We now have before us
a diamond project with substantial potential revenue and mine life.
Local communities and other stakeholders stand to benefit from the
successful development of the Renard Project for generations. I would
like to thank all levels of government for their collaboration,
particularly Minister Ouellet, Mayor Cyr and Chief Shecapio who we are
pleased to welcome today in Montreal."
Construction of the permanent road leading to the Renard Project began
in February 2012 as the "Route 167 Extension". Under the terms of a
November 2012 Framework Agreement and a December 2012 Financing
Agreement between Stornoway and the Government of Québec, Québec is
completing the first 143km of road (segments "A" and "B") as a 70km/hr
two-lane gravel highway and Stornoway is undertaking the construction
of a 50km/hr single lane mining road over the remaining 97km (segments
"C" and "D" the "Renard Mine Road"). On September 3rd,2013 Stornoway announced that all four segments had been successively
connected, allowing the first full transit of vehicles to the project
site well ahead of schedule. On October 10thStornoway announced that owing to the expected completion of the Renard
Mine Road approximately 10% below budget, an agreement had been reached
with Québec to allow the balance of remaining funds to be applied to
the construction of the Renard Mine aerodrome, which will serve to
enhance public air transport in the Monts Otish region of Québec.
Upon construction, the Renard Diamond Project is expected to supply up
to 2 million carats of high value, gem quality diamonds to the world
rough diamond market, representing up to 3% of world supply in value
terms.
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 at Renard, followed by an
Optimization Study in January 2013, which highlighted the potential of
the project to become a significant producer of high value rough
diamonds over a long mine life. Probable Mineral Reserves as defined
under National Instrument ("NI") 43-101 stand at 17.9 million carats.
Total Indicated Mineral Resources, inclusive of the Mineral Reserve,
stand at 27.1 million carats, with a further 16.9 million carats
classified as Inferred Mineral Resources, and 25.7 to 47.8 million carats classified as non-resource exploration upside. All
kimberlites remain open at depth. Readers are referred to the technical
report dated December 29th, 2011 in respect of the November 2011 Feasibility Study for the Renard
Diamond Project, and the technical report dated February 28th, 2013 in respect of the January 2013 Optimization Study, 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 and
headquartered in Montreal. Our flagship asset is the 100% owned Renard
Diamond Project, on track to becoming Québec's first diamond mine.
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
This press release contains "forward-looking information" within the
meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995. This information and these statements,
referred to herein as "forward-looking statements", are made as of the
date of this press release and the Company does not intend, and does
not assume any obligation, to update these forward-looking statements,
except as required by law.
Forward-looking statements relate to future events or future performance
and reflect current expectations or beliefs regarding future events and
include, but are not limited to, statements with respect to: (i) the
amount of mineral resources and exploration targets; (ii) the amount of
future production over any period; (iii) net present value and internal
rates of return of the mining operation; (iv) assumptions relating to
recovered grade, average ore recovery, internal dilution, mining
dilution and other mining parameters set out in the Feasibility Study
or the Optimization Study; (v) assumptions relating to gross revenues,
operating cash flow and other revenue metrics set out in the
Feasibility Study or the Optimization Study; (vi) mine expansion
potential and expected mine life; (vii) expected time frames for
completion of permitting and regulatory approvals and making a
production decision; (viii) the expected time frames for the
construction of a mining grade road by Stornoway and completion
generally of the Route 167 extension and the financial obligations or
costs incurred by Stornoway in connection with such road extension;
(ix) future exploration plans; * future market prices for rough
diamonds; and (xi) sources of and anticipated financing requirements.
Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as "expects", "anticipates", "plans",
"projects", "estimates", "assumes", "intends", "strategy", "goals",
"objectives" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
Forward-looking statements are made based upon certain assumptions and
other important factors that, if untrue, could cause the actual
results, performances or achievements of Stornoway to be materially
different from future results, performances or achievements expressed
or implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Stornoway will operate in the
future, including the price of diamonds, anticipated costs and
Stornoway's ability to achieve its goals. Certain important factors
that could cause actual results, performances or achievements to differ
materially from those in the forward-looking statements include, but
are not limited to: (i) required capital investment and estimated
workforce requirements; (ii) estimates of net present value and
internal rates of return; (iii) receipt of regulatory approvals on
acceptable terms within commonly experienced time frames; (iv) the
assumption that a production decision will be made, and that decision
will be positive; (v) anticipated timelines for the commencement of
mine production; (vi) anticipated timelines related to the construction
of a mining grade road by Stornoway and completion generally of the
Route 167 extension and the impact on the development schedule at
Renard; (vii) anticipated timelines for community consultations and the
impact of those consultations on the regulatory approval process;
(viii) market prices for rough diamonds and the potential impact on the
Renard Project's value; and (ix) future exploration plans and
objectives. Additional risks are described in Stornoway's most recently
filed Annual Information Form, annual and interim MD&As, and other
disclosure documents available under the Company's profile at: www.sedar.com.
By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
estimates, forecasts, projections and other forward-looking statements
will not be achieved or that assumptions do not reflect future
experience. We caution readers not to place undue reliance on these
forward-looking statements as a number of important risk factors could
cause the actual outcomes to differ materially from the beliefs, plans,
objectives, expectations, anticipations, estimates, assumptions and
intentions expressed in such forward-looking statements. These risk
factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur, including the assumption in
many forward-looking statements that other forward-looking statements
will be correct, but specifically include, without limitation, (i)
risks relating to variations in the grade, kimberlite lithologies and
country rock content within the material identified as mineral
resources from that predicted; (ii) variations in rates of recovery and
breakage; (iii) the greater uncertainty of exploration targets; (iv)
developments in world diamond markets; (v) slower increases in diamond
valuations than assumed; (vi) risks relating to fluctuations in the
Canadian dollar and other currencies relative to the US dollar; (vii)
increases in the costs of proposed capital and operating expenditures;
(viii) increases in financing costs or adverse changes to the terms of
available financing if any; (ix) tax rates or royalties being greater
than assumed; * results of exploration in areas of potential
expansion of resources; (xi) changes in development or mining plans due
to changes in other factors or exploration results of Stornoway; (xii)
changes in project parameters as plans continue to be refined; (xiii)
risks relating to receipt of regulatory approvals or the implementation
of the existing Impact and Benefits Agreement with aboriginal
communities; (xiv) the effects of competition in the markets in which
Stornoway operates; (xv) operational and infrastructure risks; (xvi)
technical, environmental, permitting and execution risk relating to the
construction by Stornoway of a mining grade road forming part of the
Route 167 extension, (xvii) the additional risks described in
Stornoway's most recently filed Annual Information Form, annual and
interim MD&A, and Stornoway's anticipation of and success in managing
the foregoing risks. Stornoway cautions that the foregoing list of
factors that may affect future results is not exhaustive.
When relying on our forward-looking statements to make decisions with
respect to Stornoway, investors and others should carefully consider
the foregoing factors and other uncertainties and potential events.
Stornoway does not undertake to update any forward-looking statement,
whether written or oral, that may be made from time to time by
Stornoway or on our behalf, except as required by law.
SOURCE Stornoway Diamond Corporation
Matt Manson (President and CEO), 416-304-1026 x101 or Orin Baranowsky (Director, Investor Relations), 416-304-1026 x103 or toll free at 1-877-331-2232