Large Diamond Recovery Capacity Added To Quebec’s Renard Diamond Plant
Stornoway Diamond Corporation announced it has optimized the design for the Renard Diamond Project to allow large diamond recovery capacity to the Renard diamond plant for no additional net capital cost.
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.
The first pouring of concrete for the plant's foundation is scheduled for April 2015. The work completed to date has indicated sufficient design efficiencies and cost savings can be implemented to allow for a Large Diamond Recovery circuit ("LDR") to be fully integrated into the plant's operation within the existing capital budget and with no change of scope in the existing ore processing capacity of 2.2 million tonnes per year.
Design Considerations
Stornoway's January 2013 Optimized Feasibility Study for the Renard Diamond Project contemplated a diamond plant flow-sheet geared to the recovery of diamonds up to 30mm in diameter (equivalent to a 200 carat round octahedral stone), with room for a LDR circuit to be retrofitted later as required. The direct capital cost for this feasibility plant design, without LDR, was estimated at that time to be C$162.7 M, excluding capitalized operating costs. The modified plant design that will be built contemplates the recovery of diamonds up to 45mm in diameter (equivalent to a 600 carat round octahedral stone), with a corresponding direct capital cost estimate of C$147.1 M.
The Renard diamond plant is being designed and constructed under an EPCM agreement between Stornoway and SNC-Lavalin Inc., with sub-contracted services being provided by AMEC Americas Ltd. and DRA Americas Inc. (DRA) for the specialized engineering and field support services relating to the plant's crushing, material handling, and diamond recovery circuits
"These plant design optimizations that we will implement at Renard will allow us to recover the potential value upside from large diamonds that is a characteristic feature of the project,” commented Matt Manson, Stornoway President and CEO.
Valuation of Renard’s Diamond Supplies
The most recent valuation of Renard's diamond samples, conducted in March 2014 by WWW International Diamond Consultants Ltd., indicated a weighted average of value of US$190/carat for the three kimberlites in the project's Mineral Reserve, and US$197/carat for Renard 2, which represents 82% of production in the first 11 years.
About the Renard Diamond Project
On July 8th 2014 Stornoway announced the completion of a $946 million project financing transaction to fully fund the project to production, and construction commenced on July 10th, 2014. First ore is scheduled to be delivered to the plant in the second half of 2016 with commercial production scheduled for the 2nd quarter of 2017.
In January 2013, Stornoway released the results of an Optimized Feasibility Study at Renard 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 in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("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 16.85 million carats classified as Inferred Mineral Resources, and 25.7 to 47.8 million carats classified as non-resource exploration upside. Average annual diamond production is forecast at 1.6 mcarats/year over the first 11 years of mining, at an average valuation of US$190/carat based on a March 2014 assessment by WWW International Diamond Consultants Ltd.
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. Their flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine
|