Stornoway Completes Field Portion of 2014 Renard Drill Program

Press Release

Renard 2 Intersected over Substantial Widths and to 1,000m depth

November 17, 2014

Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) is pleased to provide an update on the 2014 resource expansion drill program at the Renard Diamond Project in Québec. The field portion of the program has now been concluded, and highlights to date are as follows:

• 12,010 meters of deep directional drilling has been completed at the Renard 2 kimberlite in 33 branches from 3 pilot holes;
• The deepest kimberlite intersection returned was at 1,012 vertical metres below surface, at which point Renard 2 is interpreted to have a cross sectional area of greater than 1 hectare, and to be open at depth;
• The overall dimensions of the Renard 2 body at depths below 600 meters are comparable to the dimensions in the upper portion of the pipe in the area of the current Mineral Reserve, with a  preliminary geological model suggesting a tonnage range of 9 to 12 mTonnes between 600m and 1,000m depth;
• The four primary kimberlite rock types identified in the upper pipe are present and remain consistent in the deep drilling; and
• Sample processing of drill core for diamond content has begun with the recovery of a 1.01 carat diamond from a caustic fusion sample and a 0.97 carat diamond from a dense media separation sample, the presence of such large diamonds in small samples being a characteristic of the Renard Project.

Matt Manson, President and CEO commented: “the 2014 resource expansion drill program has met our expectations on the tonnage potential of the Renard 2 kimberlite below the level of the current Mineral Reserve. Whilst the kimberlite clearly shows areas of gentle pinching and swelling with depth, at 1,000 meters below surface it is still of a size and geological composition comparable to what we see closer to the surface. This is a remarkable ore body, and the 2014 drill program, which has been technically challenging to complete, has succeeded in delineating many years of potential mining beyond the current 11 year reserve based mine plan. We now move into the detailed geological modeling and sample processing work, with a revised Mineral Resource estimate expected at the end of Q2 2015.”

The Renard 2 deep drilling commenced in early April with three drill rigs establishing a single pilot hole each from which a series of tightly constrained branches were cut using directional drilling equipment. Two drills were situated within the outline of Renard 2 and drilled subvertically within the kimberlite, while a third drill was positioned outside the body and focused on inclined holes. A total of 33 branches were cut from the three pilot holes, ranging in length from 5.3m to 724.8m. Two separate shorter holes were also drilled from surface within the Renard 2 body. Total meterage drilled during the program was 12,010m and comprised a mixture of BQ, NQ and HQ diameter core. The longest continuous drill hole trace ran 1,086m from surface to the end of the hole. The deepest vertical depth tested from surface was 1,056m, and the deepest vertical depth of kimberlite intersected was 1,012m.

This drilling has resulted in sufficient internal kimberlite intersections and external pierce points on the margins of the body to allow it to be outlined between 600m (at the base of the current Indicated Mineral Resource and Mineral Reserve) and 1000m depth. Each of the four characteristic geological units that comprise the Renard 2 kimberlite have been intersected, including Kimb2a (“Blue” kimberlite), Kimb2b (“Brown” kimberlite), Kimb2c (Hypabyssal Kimberlite) and CRB/CRB-2a (“Country Rock Breccia”).

Initial geological modeling from the drill results suggests that Renard 2 maintains a substantial cross-sectional area to 1,000m depth (see table below). Irregularities in the pipe shape previously noted in the upper 600m of the pipe continue to 1000m depth, and there is no indication at this stage that the proportion of the diatreme units Kimb2a and Kimb2b within the kimberlite diminishes markedly with depth. This means that the “root zone”, which can be expected to be comprised of narrow zones of primarily hypabyssal kimberlite, has not yet been reached, and Renard 2 can be considered open below 1,000m.

Read More: http://www.stornowaydiamonds.com/investor_relations/news_releases/index.php?&content_id=772

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