Stornoway Diamond Declares Commercial Production at Renard Mine
Stornoway Diamond Corp. (TSX: SWY) declares that commercial production has been achieved at the Renard Diamond Mine. Commercial Production at Renard is defined as an average processing rate of 60% of plant name-plate capacity over a 30 day period. This was achieved on December 3, 2016, with an average processing rate of 4,120 tonnes per day over the preceding 30 day period compared to a name-plate capacity of 6,000 tonnes per day.
Pursuant to the terms of Stornoway’s financing agreements, Stornoway will formally declare commercial production on the first day of the month following the month in which it is achieved, which is January 1, 2017. The company expects to continue the ramp-up of the process plant to full production over the next two quarters.
Matt Manson, President and CEO of Stornoway, stated: “I would like to take this opportunity to thank the entire Renard team on achieving this important milestone well within schedule and budget, and with quality workmanship from the beginning. The attainment of Commercial Production marks the end of the project’s capital expense period, and our final capital costs are forecast to be comfortably within the reduced C$775 million estimate set out in February 2016. Our production ramp-up continues, with three diamond sales scheduled for the first quarter of 2017.”
About the Renard Diamond Mine
The Renard Diamond Mine 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. On July 8, 2014, Stornoway announced the completion of a $946 million project financing transaction to fully fund the project to production, and construction commenced on July 10, 2014. Processing of ore commenced on July 15, 2016.
In March 2016, Stornoway released the results of an Updated Mine Plan and Mineral Reserve Estimate in March 2016. The study highlighted the potential of the project to become a significant producer of high value rough diamonds over an initial 14 year mine life. Probable Mineral Reserves, as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), stand at 22.3 million carats. In accordance with the Corporation’s September 2015 Mineral Resource estimate, total Indicated Mineral Resources, inclusive of the Mineral Reserve, stand at 30.2 million carats, with a further 13.35 million carats classified as Inferred Mineral Resources, and 33.0 to 71.1 million carats classified as non-resource exploration upside. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining, at an average valuation of US$155/carat based on March 2016 terms.
About Stornoway Diamond
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, 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.
Source: Stornoway Diamond