Stornoway Announces Formal Production Decision at Renard
Press Release –
July 10, 2014
Ground Breaking Ceremony Held in the Presence of Philippe Couillard, Premier of Québec
Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to announce that a formal decision to proceed to mine construction and production at the Renard Diamond Project has been made by the Corporation’s Board of Directors in connection with the recent closing of the project’s comprehensive C$946million1 financing package on July 8th and the overwhelming approval by Stornoway shareholders of resolutions relating to the financing on June 26th.
Concurrent with this announcement, a ground breaking ceremony was held today at the Renard Project site in the presence of M. Philippe Couillard, the Premier of Québec, M. Jacques Daoust, the Québec Minister of the Economy, Innovation and Exports, M. Jean Boucher, the Member of the Québec National Assembly for Ungava, Chief Richard Shecapio, Chief of the Cree Nation of Mistissini, Mme Manon Cyr, Mayor of Chibougamau and M. Steve Gamache, Mayor of Chapais. Project construction has now been fully mobilized, with commercial production on schedule for the second quarter of 2017 based on first plant commissioning in late 2016.
Matt Manson, President and CEO, stated: “The formal decision to proceed to construction and production at Renard, announced today at a ground breaking ceremony in the presence of Premier Coulillard and our partners in the communities of Mistissini, Chibougamau and Chapais, represents the most significant milestone yet in the long journey to bring Québec’s first diamonds to market. The Renard Diamond Project is now fully permitted, financed, and ready to build. This is a moment to acknowledge the immense effort of all those that have been involved over the last 18 years in the exploration, discovery, assessment, design and financing of Renard, and to look forward to the significant undertakings of mine construction, commissioning and successful operation that lie ahead.”
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 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. Readers are cautioned that the potential quality and grade of any target for further exploration is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource. 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. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a “qualified person” under NI 43-101.
1 All figures assume a C$:US$ conversion rate of $1.10.
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
For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x101
or Orin Baranowsky (Director, Investor Relations) at 416-304-1026 x103
or toll free at 1-877-331-2232
Pour plus d’information, veuillez contacter M. Ghislain Poirier, Vice-président Affaires publiques de Stornoway au 450-616-5555, gpoirier@stornowaydiamonds.com
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **
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