TECHNICAL REPORT OF PRELIMINARY ECONOMIC ASSESSMENT FILED ON SEDAR
TSX: DIAM
SASKATOON, May 30, 2018 /CNW/ - Star Diamond Corporation ("Star
Diamond" or the "Corporation"), is pleased to announce that the Technical Report of the independent Preliminary Economic
Assessment ("PEA") on the Star and Orion South Kimberlites (the "Star - Orion South Diamond Project", or "Project") (see News
Release dated April 16, 2018) has been filed on SEDAR (www.sedar.com). The Technical Report will also be filed on the Corporation's website
(www.stardiamondcorp.com). The Star and Orion South
Kimberlites are situated in the Fort à la Corne diamond district of central Saskatchewan,
Canada, on mineral dispositions held 100% by Star Diamond. The PEA estimates 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.
The PEA was led by independent mining, processing and design consultants, with support from the Star Diamond technical team.
The principal consultants include: SGS Canada Inc. - Geostat ("SGS"); DRA Americas Inc. ("DRA"), CSA Global Geosciences Canada
Ltd ("CSA") and ENGCOMP Engineering and Computing Professionals Inc. ("ENGCOMP"). A number of other independent consulting firms
and potential vendors also provided their study results to Star Diamond for use in developing the PEA.
The PEA was authored by the following independent qualified people: W. Douglas Roy, Senior
Associate Mining Engineer for SGS, a registered Professional Engineer in the Province of Nova
Scotia; Daniel Leroux, Global Business Manager – Geological and Mining Services for SGS, a
registered Professional Geoscientist in the Provinces of Ontario and Saskatchewan; Lehman van Niekerk, Senior Process Engineer, DRA Projects SA (Pty) Ltd, a registered
Professional Engineer with the Engineering Council of South Africa and member of The Southern African Institute of Mining
and Metallurgy; Geoffrey Wilkie, Senior Cost Consultant ENGCOMP, a registered Professional Engineer in the Province of
Saskatchewan, and Leon McGarry, Senior Resource Geologist, CSA
Global Geosciences Canada Ltd, a registered Professional Geoscientist in the Province of Ontario
and Saskatchewan.
About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and development of mineral
properties. Shares of the Corporation trade on the TSX Exchange under the trading symbol "DIAM". The Corporation's Star - Orion
South Diamond Project is located in central Saskatchewan some 60 kilometres east of the city of
Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical
power grid, which provide significant advantages for future mine development.
All technical information in this press release has been prepared under the supervision of George
Read, Senior Vice-President of Exploration and Development, a registered Professional Geoscientist in the Provinces of
Saskatchewan and British Columbia; Mark
Shimell, Project Manager, a registered Professional Geoscientist in the Province of Saskatchewan; and William van Breugel, Mine Project Engineer, a registered
Professional Engineer in the Province of Saskatchewan, who are the Corporation's "Qualified
Persons" under the definition of NI 43-101.
Star Diamond commissioned the PEA and related Technical Report for the Star and Orion South Kimberlites and, as such, the PEA
and Technical Report are the sole responsibility of the Corporation. The PEA is based on exploration and evaluation work
conducted up to and including March 2017.
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour"
provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995.
Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect",
"plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar
words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding the Corporation's future
operations, future exploration and development activities or other development plans constitute forward-looking statements. By
their nature, statements referring to mineral reserves, mineral resources, PEA or TFFE constitute forward-looking
statements.
Forward-looking statements in this press release include, but are not limited to, disclosure regarding the economics and
project parameters presented in the PEA, including, without limitation, IRR, NPV and other costs and economic information, carats
of diamonds to be recovered, pre-tax payback period, tonnes of kimberlite to be mined, carats per tonne to be recovered (grade),
diamond prices, life of mine, capital costs, length of pre-production period and all data in Tables 1 through 6, possible events,
conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the
timing and costs of future development and exploration activities on the Corporation's projects; success of development and
exploration activities; permitting time lines and requirements; time lines for further studies; planned exploration and
development of properties and the results thereof; and planned expenditures and budgets and the execution thereof as well as
statements with respect to the Corporation's objectives for the ensuing year.
These forward-looking statements are based on the Corporation's current beliefs as well as assumptions made by and information
currently available to it and involve inherent risks and uncertainties, both general and specific.
Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to,
developments in world diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and other
currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing
budget priorities of the Corporation or its partners, the effects of competition in the markets in which the Corporation
operates, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or
regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in the
Corporation's most recently filed Annual Information Form, annual and interim MD&A. The Corporation's anticipation of and
success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such
forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to the Corporation,
investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and
other uncertainties and potential events. Unless required by applicable securities law, the Corporation does not undertake to
update any forward-looking statement that is made herein.
SOURCE Star Diamond Corporation
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