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Stornoway (SWY.TO) Announces New Agreement to Complete Route 167 Extension

Discussion in 'Stock Market News & Analysis' started by mickymoose99, Nov 15, 2012.

  1. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Announces New Agreement to Complete Route 167 Extension

    Quebec and Stornoway to Partner on Road Financing and Construction


    MONTREAL, QUEBEC--(Marketwire - Nov. 15, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that its wholly-owned subsidiary Les Diamants Stornoway (Canada) Inc. has entered into a Framework Agreement and an associated Letter of Intent (collectively the "Agreement") with the Government of Québec for the financing and completion of the Route 167 Extension under Stornoway's direct management. The Agreement is designed to ensure timely road access to the Renard Diamond Project and the commencement of mine construction during 2013, as previously contemplated. Key features of the new Agreement are as follows:
    •Stornoway to assume the completion of segments "C" and "D" of the Route 167 Extension as a single lane mining grade road; and
    •Québec to provide Stornoway with an unsecured credit facility of up to C$77m to complete the work, at an annual interest rate of 3.35% percent, amortized over 15 years, with a repayment schedule based upon planned commencement of commercial production at Renard.

    In addition, and in support of Stornoway's construction schedule for Renard, Québec has agreed that:
    •The Québec Ministère des Transports ("MTQ") shall continue with the construction of a winter road this season as previously planned, providing temporary road access to Renard by March 2013; and
    •The Québec Ministère du Développement Durable, de l'Environnement, de la Faune et des Parcs and the MTQ shall transfer all relevant authorizations for Stornoway to commence mining road construction by April 2013.

    As a result of the Agreement, Stornoway now anticipates first all-season vehicle access to the Renard project site by the 4th Quarter of 2013, compared to July 2013 previously.

    Matt Manson, Stornoway's President and CEO commented: "Today's news represents the removal of a major element of uncertainty over the Renard Diamond Project. With Stornoway now responsible for the completion of the project's access road, we will be in full control of our overall development schedule for the first time. The financing terms that we have negotiated to complete this work are beneficial to Stornoway, and are expected to have a minimal impact on the project's overall valuation and financing capacity. This is an excellent example of government and the mining industry working in partnership to achieve a common goal." Mr. Manson continued: "Since Stornoway's October 29th announcement of the potential for a delay in the completion of the Route 167 Extension, we have moved quickly to re-establish a viable plan for road access to Renard during 2013. The Agreement announced today achieves this, and allows us to continue moving forward with our project financing and development activities. This positive outcome will benefit our shareholders, our community partners and Québec in equal measure."

    Construction on the 240km long Route 167 Extension began in February of this year, and is being undertaken in four segments, "A" to "D". Under the terms of the Framework Agreement executed today with the MTQ, the Québec Ministère des Ressources Naturelles ("MRN"), and the Québec Ministère des Finances et de l'Économie ("MFE"), Québec will complete the first 143km of the road over segments A and B as a 70km/hr two-lane gravel highway, as previously planned. Starting in April 2013, Stornoway will commence construction of a 50km/hr single lane mining road over the remaining 97km covered by segments C and D. To facilitate this schedule, the MTQ has committed to complete a winter road by March 2013, allowing temporary access to Renard and the mobilization of fuel, road construction equipment and camps. Given the reduced scope of the mining road that will be built on segments C and D, and the progress that has been made to date on segments A and B, it is expected that this construction plan will allow all-season road access to be available to Renard starting in the 4th Quarter of 2013 and mine construction to commence forthwith. Maintenance costs on segments C and D will be borne by Stornoway, and by Québec on segments A and B.

    The cost of a mining road on segments C and D has been estimated by Stornoway at C$77 million, including a 15% contingency. Under the terms of the Letter of Intent between Stornoway and the MFE, this cost will be financed by way of an unsecured credit facility to be provided to Stornoway by the MFE, bearing an annual interest rate of 3.35% and amortized over a fifteen year period. In order to provide additional cost contingency, the MFE is agreeing to provide Stornoway with a second facility, with the right to draw a further C$7.7 million, bearing an annual interest rate of 6.3%, for total credit facilities of up to C$84.7 million. Stornoway's schedule of loan repayments is based upon the schedule of financing and construction of the Renard Diamond Project, commencing upon the attainment of commercial production. Finalisation of these terms is dependent upon the conclusion of a definitive Financing Agreement between Stornoway and the MFE, which is currently under negotiation. Stornoway's obligations under the Framework Agreement are conditional upon the execution of the definitive Financing Agreement.

    The Agreement provides for the termination of, and replaces, the two pre-existing agreements between Stornoway and Québec dated August 1st 2011, wherein Stornoway agreed to contribute C$44 million to the construction of the Route 167 Extension at a 6.3% interest rate over 10 years, and up to C$1.215 million per year to the road's maintenance.

    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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.

    About Stornoway Diamond Corporation

    Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
     
  2. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Completes Renard 65 Bulk Sample Field Program

    Stornoway (SWY.TO) Completes Renard 65 Bulk Sample Field Program

    MONTREAL, QUEBEC--(Marketwire - Nov. 21, 2012) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has completed the field portion of a bulk sample program on the Renard 65 Kimberlite pipe, located at Stornoway's 100% owned Renard Diamond Project in north-central Quebec. The program was announced in a press release dated July 23, 2012.

    The objective of the bulk sample program is to collect a large enough parcel of diamonds to allow the conversion of material that is currently classified as an Inferred Mineral Resource at Renard 65 to an Indicated Mineral Resource and then, if warranted, to a Mineral Reserve. Sampling commenced in July with the objective of collecting five thousand tonnes from a surface trench through blasting. Following the trenching, a sample of approximately 5,147 dry tonnes of kimberlite from Renard 65 was processed at the 10 tonne per hour Dense Media Sample plant located at the Renard project site. A heavy mineral concentrate produced by the plant will now undergo final diamond recovery at Stornoway's North Vancouver lab facilities. Diamond results are expected in Q1 2013. Given the estimated diamond content at the sampling site, it is expected that approximately 1,000 carats of diamonds will be recovered, which will be sent to Antwerp, Belgium for valuation.

    Matt Manson, President and CEO, commented: "We are pleased that trenching and processing of the Renard 65 bulk sample has progressed so well to date. Although Renard 65 is lower grade than the other four kimberlites contained within the Renard Mineral Resource, it is the largest pipe discovered to date at Renard and is amenable to large scale open-pit mining. The successful conversion of Inferred Mineral Resources at Renard 65 to a Mineral Reserve will allow us to plan for an expanded processing rate and an extension of the reserve mine life beyond the current 11 years. This is all expected to add value to the project."

    In November 2011, Stornoway released the first National Instrument ("NI") 43-101 compliant Mineral Reserve estimate for Renard of 18.0 Mcarats (representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes, or "cpht") at a weighted average diamond valuation of US$180/carat. The project's Inferred Mineral Resources comprise an additional 17.5 Mcarats (31.1 Mtonnes at an average grade of 56 cpht), and targets for further exploration outside of the Mineral Resource statement have been estimated at between 23.5 and 48.5 Mcarats (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht). Within this resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 Mcarats (representing 12.9 mtonnes at an average grade of 29 cpht) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 Mcarats (29.5 to 41.6 Mtonnes at between 23 and 33 cpht) from 290m to 775m in depth. All kimberlites remain open at depth.

    The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.

    Qualified Persons

    Mr. David Skelton, P.Geo. (QC), P.Geol (AB), Vice President, Project Development for Stornoway is a Qualified Person as defined under National Instrument 43-101 and was responsible for supervising the Renard 65 bulk sample program on the Renard Diamond Project. Mr. Skelton has reviewed and approved the scientific and technical information contained in this release.

    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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.

    About Stornoway Diamond Corporation

    Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec's first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
     
  3. SmartStocks

    SmartStocks New Member

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    Stornoway (SWY.TO) Receives Renard Certificate of Authorization

    Major Permitting Milestone Achieved on Schedule

    Source: http://stornowaydiamonds.com/investor_relations/news_releases/index.php?&content_id=678

    MONTREAL, QUEBEC--(Marketwire - Dec 6, 2012) - Stornoway Diamond Corporation (SWY.TO) is pleased to announce that it has received the global Certificate of Authorization for the Renard Diamond Project from the Québec Ministère du Développement Durable, de l''Environnement,de la Faune et des Parcs ("MDDEFP"). The Certificate of Authorization represents the principal regulatory approval required to commence mine construction, and has been issued by the Québec regulators following more than 2 years of formal environmental study, community engagement and public consultation under the terms of the James Bay and Northern Québec Agreement (the "JBNQA").

    Matt Manson, Stornoway''s President and CEO commented: "Today''s news represents the most significant milestone in the development of the Renard Diamond Project achieved to date. It comes just 11 months since the filing of the project''s Environmental and Social Impact Assessment, an accomplishment that reflects the high quality of the work undertaken by Stornoway''s project team and partners, and the broad support that the project enjoys within the nearby communities of Mistissini, Chibougamau and Chapais. The MDDEFP global Certificate of Authorization is the most important element of the permitting process for mining projects in Québec. As of today we are able to say that the principal regulatory hurdle for the Renard Diamond Project is behind us."

    The Renard project falls under the social and environmental protection regimes of both the JBNQA and the Canadian Environmental Assessment Act ("CEAA"). Successful public hearings on the project were held by the federal Canadian government and Québec in June and August of this year respectively. Stornoway expects to receive regulatory authorizations from the Fisheries and Oceans Canada and Environment Canada shortly, following the conclusion of the federal government''s evaluation of the project under the CEAA. The Québec Certificate of Authorization has been issued by the MDDEFP upon the recommendation of the review committee of the JBNQA ("COMEX"). The project''s Mining Lease was issued by the Québec Ministère des Ressources naturelles in October.

    The Renard Environmental and Social Impact Assessment, as well as the project''s Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway''s website (www.stornowaydiamonds.com/renard/esia).

    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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project.

    About Stornoway Diamond Corporation

    Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec''s first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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

    Matt Manson, President and Chief Executive Officer
     
  4. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Receives Renard Certificate of Authorization

    Stornoway (SWY.TO) Receives Renard Certificate of Authorization

    Major Permitting Milestone Achieved on Schedule



    MONTREAL, QUEBEC--(Marketwire - Dec 6, 2012) - Stornoway Diamond Corporation (SWY.TO) is pleased to announce that it has received the global Certificate of Authorization for the Renard Diamond Project from the Québec Ministère du Développement Durable, de l''Environnement,de la Faune et des Parcs ("MDDEFP"). The Certificate of Authorization represents the principal regulatory approval required to commence mine construction, and has been issued by the Québec regulators following more than 2 years of formal environmental study, community engagement and public consultation under the terms of the James Bay and Northern Québec Agreement (the "JBNQA").

    Matt Manson, Stornoway''s President and CEO commented: "Today''s news represents the most significant milestone in the development of the Renard Diamond Project achieved to date. It comes just 11 months since the filing of the project''s Environmental and Social Impact Assessment, an accomplishment that reflects the high quality of the work undertaken by Stornoway''s project team and partners, and the broad support that the project enjoys within the nearby communities of Mistissini, Chibougamau and Chapais. The MDDEFP global Certificate of Authorization is the most important element of the permitting process for mining projects in Québec. As of today we are able to say that the principal regulatory hurdle for the Renard Diamond Project is behind us." The Renard project falls under the social and environmental protection regimes of both the JBNQA and the Canadian Environmental Assessment Act ("CEAA"). Successful public hearings on the project were held by the federal Canadian government and Québec in June and August of this year respectively. Stornoway expects to receive regulatory authorizations from the Fisheries and Oceans Canada and Environment Canada shortly, following the conclusion of the federal government''s evaluation of the project under the CEAA. The Québec Certificate of Authorization has been issued by the MDDEFP upon the recommendation of the review committee of the JBNQA ("COMEX"). The project''s Mining Lease was issued by the Québec Ministère des Ressources naturelles in October. The Renard Environmental and Social Impact Assessment, as well as the project''s Environmental Baseline Study and Restoration Plan, are available in their entirety on Stornoway''s website (www.stornowaydiamonds.com/renard/esia).

    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 for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the Renard Diamond Project for further details and assumptions relating to the project. About Stornoway Diamond Corporation

    Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec''s first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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

    Matt Manson, President and Chief Executive Officer
     
  5. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Completes Finance Agreement With Quebec for Renard Mine Road

    Stornoway (SWY.TO) Completes Finance Agreement With Quebec for Renard Mine Road



    MONTREAL, QUEBEC--(Marketwire - Dec. 7, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that its wholly-owned subsidiary Les Diamants Stornoway (Canada) Inc. has completed a Financing Agreement with the Québec Ministère des Finances et de l'Économie ("MFE") under which Stornoway will be financed to complete the construction of a mining-grade access road to the Renard Diamond Project (the "Renard Mine Road"). The Financing Agreement is pursuant to a Framework Agreement and associated Letter of Intent previously executed between Québec and Stornoway and announced on November 15, 2012. The Framework Agreement and the now-completed Financing Agreement are designed to ensure all-season road access to Renard during 2013. Features of the Financing Agreement are as follows:
    •Québec to provide Stornoway with a credit facility of up to C$77m ("Loan A") to complete the road construction work, at an annual interest rate of 3.35% percent, for a term of 15 years, with repayment beginning 48 months following first disbursement, and deferrable up to 2 years due to any delay in the attainment of commercial production at Renard past July 1, 2016.
    •Québec to provide Stornoway an additional overrun facility of up to C$7.7m ("Loan B"), at an annual interest rate of 6.3% percent, with repayments concurrent with Loan A.
    •Stornoway undertakes to complete construction of the Renard Mine Road no later than June 30, 2015, subject to certain terms, including terms of the previously announced Framework Agreement.

    On the basis of the construction schedule as currently anticipated, Stornoway expects to request an initial disbursement under Loan A during the month of December 2012.
     
  6. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Receives Transfer of the Certificate of Authorization for The Ren

    Stornoway (SWY.TO) Receives Transfer of the Certificate of Authorization for The Renard Mine Road



    MONTREAL, QUEBEC--(Marketwire - Dec. 17, 2012) -Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that it has received from the Québec Ministère du Développement durable, de l'Environnement, de la Faune et des Parcs ("MDDEFP") the transfer of the Certificate of Authorization for the construction of the Renard Mine Road, the 97 km long mining grade road that Stornoway will construct to complete all season road access to the Renard Diamond Project. The transfer of this Certificate of Authorization has been made consistent with the schedule contained within the Framework Agreement entered into on November 15th 2012 between Stornoway, the MDDEFP, the Québec Ministère des Transports ("MTQ"), the Ministère des Ressources Naturelles and the Ministère des Finances et de l'Économie.

    Construction of the road that will provide all-season vehicle access to the Renard Project began in February 2012 as the "Route 167 Extension". Under the terms of the Framework Agreement, and a subsequent Financing Agreement entered into on November 30th, 2012, Québec will complete the first 143km of road as a 70km/hr two-lane gravel highway as previously planned and Stornoway will undertake the construction of a 50km/hr single lane mining road over the remaining 97km. Québec will provide Stornoway with credit facilities of up to C$85 million to complete this work. To facilitate the road's construction schedule, the MTQ will complete a winter road by March 2013 to allow temporary access to Renard and the mobilization of fuel, road construction equipment and camps. It is expected that permanent road access to Renard will be available by Q4 2013 to allow mine construction to commence.

    The Renard Mine Road Certificate of Authorization represents the principal regulatory approval required for Stornoway to commence road construction. Given that the single lane road that will be built will have a smaller environmental footprint than was previously contemplated for the Route 167 Extension, Stornoway will seek minor changes to the terms of the authorization.
     
  7. SmartStocks

    SmartStocks New Member

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    CEO of Stornoway Diamonds Matt Manson sits down wth Tara Sweder for an exclusive one on one interview. Manson discusses the rarity of diamond mining, the significance of the Renard Diamond Project, the present and future challenges faced in mining for diamonds and his personal experiences in the industry.

    Watch the interview: http://bit.ly/RA5jp2
     
  8. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Reports Optimized Renard Mine Design and Cost Estimates

    Stornoway (SWY.TO) Reports Optimized Renard Mine Design and Cost Estimates


    Initial Capital Cost Reduced; High Operating Margin Maintained


    VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to report the completion of a mine design and cost optimization exercise (the "Optimization Study") for the Renard Diamond Project, Stornoway's 100% owned mining development project located in north-central Québec. The Optimization Study incorporates certain design refinements undertaken since the release of the project's Feasibility Study in November 2011 (the "Feasibility Study"), including the deferral of shaft access for the underground mine and a modified underground mining sequence and draw point design. As a result of these design changes, project operating and capital cost estimates have been restated, and a revised production schedule established. The Optimization Study also contains an updated project development schedule and financial model incorporating, amongst other things, the terms of the March 2012 Mecheshoo Agreement with the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee), and the Cree Regional Authority, and the November 2012 Renard Mine Road financing agreement with the Government of Québec. Highlights of the Optimization Study are as follows:
    •A revised initial capital cost of C$752 million, including contingencies, in October 2012 terms, a reduction of C$50 million from the previous estimate which was expressed in June 2011 terms.
    •A revised operating cost averaging C$57.63/tonne (C$76.63/carat) life of mine in October 2012 terms, an increase of C$2.92/tonne from the previous estimate.
    •Base case estimates of Net Present Value ("NPV") of C$683 million at a 7% discount rate and Internal Rate of Return ("IRR") of 20.3% before taxes and mining duties, and C$391 million and 16.3% after taxes and mining duties, all improvements from the previous estimates.
    •11 years reserve-based mine life with diamond production averaging 1.6 million carats/annum life of mine, real terms net revenue of C$4,046 million, and a cash operating margin of C$2,693 million (67% compared to 68% in the previous estimate).

    Matt Manson, President and CEO, commented: "The Optimization Study reported today confirms a robust project with strong cash flows. Since the release of the project's Feasibility Study, we have been able to bring down our initial capital cost estimate with only a modest impact on the project's operating costs. We are particularly pleased that the project has so successfully absorbed the kind of post-feasibility design adjustments and operating agreements that can negatively impact a project's value. The deferral of the shaft has been achieved without compromising the future development of the project's substantial resource upside, and the refinements made to the underground mining sequence provide greater confidence in the operating parameters for this critical part of the overall mine plan. With our Mining Lease and Québec Certificate of Authorization in hand, and the Renard Mine Road under development, we can now move towards finalizing our project financing arrangements, and initiating project construction in the third quarter of this year."

    The Optimization Study restates the project's Probable Mineral Reserves at 17.9 million carats (23.8 Mtonnes at 75 carats per hundred tonnes, or "cpht"), a reduction of 0.1 million carats after allowance for revised mining dilution and ore recovery estimates. The new study does not incorporate any changes to the project's underlying National Instrument ("NI") 43-101 compliant Mineral Resources, and does not include the results of the ongoing bulk sampling program at the Renard 65 kimberlite. Including Renard 65, the project contains 17.5 million carats (31.1 Mtonnes at 56 cpht) of Inferred Mineral Resources, much of which lies within the envelope of the planned mine infrastructure. Since mineral resources that are not mineral reserves do not have demonstrated economic viability, these have not been incorporated into the Optimization Study mine plan, in compliance with Canadian reporting standards. However, the project's design, processed kimberlite storage capacity, permits and Mining Lease contemplates the eventual mining of all NI 43-101 Mineral Resources over an extended mine life. In addition to the Mineral Resources, 23.5 to 48.5 million carats of non-resource exploration upside (55.1 to 75.5 Mtonnes at grades ranging from 23 to 188 cpht) has been estimated to 775 meters depth, below which each kimberlite remains open. Readers are cautioned that the potential quantity and grade of any such exploration target 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 (an Optimization Study Support Material presentation is available at http://stornowaydiamonds.com/_resources/feasibility_support_materials_20130128.pdf).

    Significant Changes to the November 2011 Feasibility Study

    The Feasibility Study included both ramp and shaft access to the Renard underground mine. Shaft sinking will now be deferred until later in the mine life and access to the underground mine will be by way of a ramp only. This will be developed to a depth of 610 meters, sufficient to extract all Mineral Reserves and the Inferred Mineral Resources, and enlarged to accommodate the planned production rate of 6,000 tonnes of ore daily. Ore will be hauled to surface by 60 tonne trucks, with ramp ventilation capacity and surface maintenance facilities expanded to accommodate the increased fleet. Plant capacity remains at 6,000 tonnes per day (2.2 Mtonnes/year) expandable to 7,000 tonnes per day (2.6 Mtonnes/year). Power requirements are expected to total 12.2 MW during operations and be provided by on-site diesel power generation.

    Diamond production in Years 1 and 2 remains predominantly derived from the Renard 2/3 open pit. Diamond production from the underground mine will commence during Year 2. As with the Feasibility Study, underground ore will be mined with blast-hole shrinkage on 250 meter, 430 meter and 610 meter development levels, with waste back fill from surface. The Optimization Study contains a refined draw point design and a mining sequence incorporating a panel-retreat method to better assure geomechanical stability and militate against the unexpected onset of natural caving. Numerical analysis of blast fragmentation, and modeling of ore flow during the draw, has been conducted using REBOP™ software. This has resulted in a modest increase in the overall estimate for ore dilution and a modest decrease in the estimate for ore recovery.

    No changes have been made to assumptions contained within the Feasibility Study for diamond price, exchange rate, or marketing costs. The cost of diesel fuel is based on an assumed oil price of US$95/barrel compared to US$90/barrel previously.

    The Optimization Study incorporates the impact of a Framework Agreement between Stornoway and the Québec Ministère des Transports, the Ministère des Ressources Naturelles, and the Ministère des Finances et de l'Économie ("MFE") for the completion of the Route 167 Extension and the Renard Mine Road, and a revised financing agreement between Stornoway and the MFE (Stornoway press releases dated November 15 and 30, 2012). The Optimization Study assumes a cost to Stornoway of $78 million (after escalation) to complete the road. The MFE loan to Stornoway funding the Renard Mine Road is in two tranches, $77 million at 3.35% and, to the extent required, an additional $7.7 million at 6.3%, both with a term of 15 years, with interest accruing from January 2016 and interest and principal payments beginning in December 2016. As a result of these agreements, the new project development schedule assumes first road access to the project site by the fourth quarter of 2013 rather than July 2013 previously. Plant commissioning is now scheduled to begin in December 2015 with commercial production achieved by June 2016, compared to July 2015 and January 2016 previously.

    The Optimization Study also incorporates certain financial terms of the Mecheshoo Agreement, the Impacts and Benefits Agreement between Stornoway, the Cree Nation of Mistissini, the Grand Council of the Crees (Eeyou Istchee) and the Cree Regional Authority (Stornoway press release dated March 27, 2012). The Mecheshoo Agreement includes a mechanism by which the Cree parties will benefit financially from the success of the project on a long term basis, consistent with mining industry best practices for social engagement.
     
  9. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Reports Arrival of Winter Road at Renard Project Site

    Stornoway (SWY.TO) Reports Arrival of Winter Road at Renard Project Site

    MONTREAL, QUEBEC--(Marketwire - Feb 14, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to report that the Québec Ministère des Transports ("MTQ") has successfully completed the construction of a winter road to the Renard Diamond Project site, two weeks ahead of schedule. The winter road is expected to be open for approximately 6 weeks, and will be used by Stornoway to mobilize heavy equipment required for the construction of the all-season Renard Mine Road. With today''s news, the Renard project has become accessible for vehicles for the first time since its discovery in 2001.

    The MTQ winter road has been constructed under a Framework Agreement executed on November 15th 2012 by Stornoway, the MTQ, the Québec Ministère des Ressources Naturelles, and the Québec Ministère des Finances et de l''Économie ("MFE"). Under the terms of this agreement, a 240km long all-season road linking Renard to the Québec highway network is currently being constructed in four segments, A to D. Progress is well established on segments A and B, which are being completed by the MTQ as a 70km/hr two-lane gravel highway. Stornoway will complete the remaining 97km covered by segments C and D as a 50km/hr single lane mining road under the terms of a Financing Agreement executed on December 6th 2012 between Stornoway and the MFE. The timely arrival of the MTQ winter road will allow Stornoway to commence construction of the Renard Mine Road in April, as previously planned. First all-season road access to Renard is scheduled for the 4th quarter of this year.

    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. NI 43-101 compliant Probable Mineral Reserves stand at 17.9 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project, and the press release dated 28th January 2013 in respect to the January 2013 Optimization Study, for further details and assumptions relating to the project.
     
  10. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Completes Renard 65 Diamond Recovery

    Stornoway (SWY.TO) Completes Renard 65 Diamond Recovery



    MONTREAL, QUEBEC--(Marketwire - Feb. 25, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to report that it has completed diamond recovery from the Renard 65 bulk sample recently collected at Stornoway's 100% owned Renard Diamond Project located in north-central Quebec. In total, 962.8 carats of diamonds larger than a +1 DTC size sieve were recovered from 5080.8 dry tonnes. The size of the diamond sample recovered and the incidene of large diamonds are consistent with Stornoway's expectations for the Renard 65 kimberlite at this sample location. The objective of the Renard 65 bulk sample was the collection of approximately 1,000 carats of Renard 65 diamonds for valuation purposes. Having achieved this objective, a diamond valuation exercise has been scheduled to take place shortly in Antwerp, Belgium.

    As previously announced (Stornoway press release dated December 11th 2012) the largest diamond recovered from the sample was a 9.78 carat white octahedral gem with a preliminary valuation of $7,000 per carat. The next largest diamond was a 6.41 carat white gem also of high quality, with a preliminary valuation of $4,700 per carat.

    The Renard 65 bulk sampling is being undertaken with a view to the potential conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and, if warranted, to a Mineral Reserve for inclusion in the project's mine plan. Within the larger Renard Mineral Resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 million carats (representing 12.9 million tonnes at an average grade of 29 carats per hundred tonnes) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 million carats (29.5 to 41.6 million tonnes at between 23 and 33 cpht) from 290m to 775m in depth. The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource. The current bulk sample was extracted from a site that is known to represent a lower grade portion of the kimberlite, but which is easily accessible from surface. In 2008, a 266 tonne trench sample from the same location returned 51.8 carats for a diamond recovery of 19 cpht, identical to the current result. Large Diamonds in Exploration Samples at Renard

    A feature of the Renard Diamond Project has been the incidence of large, high value stones that have been recovered at each stage of exploration sampling since the project's discovery in 2001. The current Renard 65 bulk sample has continued this trend. In 2003 a white octahedral gem of at least 4 carats was discovered embedded in drill core at Renard 65. During the Renard bulk sampling program of 2007 a 15.46 carat top light brown "makeable" gem was recovered from Renard 2, a 10.15 carat white octahedral gem was recovered from Renard 3, and a broken 21.53 carat brown octahedral gem was recovered from the Lynx Dyke in three pieces of 11.73, 5.96 and 3.94 carats. In all, at least seven large stones have now been recovered from Renard with values in excess of US$4,000 per carat. Scientific and Technical Data

    Diamond results reported in this release are based on dense media separation (DMS) processing work completed by Stornoway at its wholly owned and operated 10 tonne per hour (tph) DMS plant situated in northern Quebec. Kimberlite was prepared through a primary jaw crusher, with -50 mm material fed directly into the DMS which is configured to recover stones retained on a 1.0 x 12.0mm slotted screen. Recovery of +1 DTC diamonds from the DMS concentrate was carried out at Stornoway's wholly owned diamond laboratory in North Vancouver whereby concentrates were processed through x-ray sorter equipment with a grease table finish to generate a final concentrate which was hand sorted to extract diamonds. Quality assurance protocols, security and actual operating procedures for the processing, transport and recovery of diamonds conform to industry standard Chain of Custody provisions. As part of Stornoway's ongoing QA/QC program, all aspects of the bulk sample program are subject to audit. Any material changes to the recovered diamond contents provided above will be reported when available. Qualified Persons

    Mr. David Skelton, P.Geo. (QC), P.Geol (AB), Vice President, Project Development for Stornoway is a Qualified Person as defined under National Instrument ("NI") 43-101 and was responsible for supervising the Renard 65 bulk sample program on the Renard Diamond Project. Mr. Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration for Stornoway is a Qualified Person as defined under NI 43-101 and was responsible for supervising the diamond recovery. Messrs. Skelton and Hopkins have reviewed and approved the scientific and technical information contained in this release. Diamond valuations were performed by Mr. Shlomo Tidhar of Galaxy Diamond Expertise (HK), a consultant to Stornoway. 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 under NI 43-101 stand at 17.9 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources, and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. Readers are referred to the technical report dated December 29, 2011 in respect of the November 2011 Feasibility Study for the Renard Diamond Project, and the press release dated 28th January 2013 in respect to the January 2013 Optimization Study, for further details and assumptions relating to the project.

    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 also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. 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
     
  11. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Options Non-Core Exploration Projects

    Stornoway (SWY.TO) Options Non-Core Exploration Projects

    MONTREAL, QUEBEC--(Marketwire - Mar 14, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to report that it has entered into option agreements with 0954506 B.C. Ltd. (the "Optionee"), a private company controlled by Ms. Eira Thomas, formerly a director of Stornoway, relating to Stornoway''s interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects. Under the terms of the option agreements, the Optionee will acquire an 80% interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects upon completion of a defined exploration program (the "option work program") specific to each project. The option work programs will be funded and operated by the Optionee. Stornoway retains a one-time back-in right to re-acquire a 20% interest in each project, thereby increasing its interest to 40%, by paying the Optionee an amount equal to three times the cost incurred by the Optionee in connection with the project-specific option work program. Stornoway has a 100% interest in each of these projects; the Qilalugaq project is subject to a 3% net smelter returns royalty on metals produced and a 3% gross-overriding royalty on the sale of industrial minerals, including diamonds.

    The Optionee has notified Stornoway of its intent to assign its interest and obligations in the option agreements to North Arrow Minerals Inc. (TSX VENTURE:NAR) ("North Arrow"), as permitted under the terms of the option agreements. Upon closing of the assignment, North Arrow, as optionee, will assume the rights and obligations of 0954506 B.C. Ltd. under these agreements.

    The option work program for the Qilalugaq, Nunavut project is designed to evaluate the potential of the Q1-4 kimberlite by the surface collection and subsequent processing of a 1,000 tonne bulk sample. The option work programs for the Pikoo, Saskatchewan and Timiskaming, Ontario projects are designed to evaluate the potential for bedrock kimberlite occurrences at each project. The Pikoo option work program will consist of a minimum of 2,000 meters of diamond drilling within the project, with a minimum of two drill holes for each of the North and South Target areas. The Timiskaming option work program will consist of single core drill holes testing three separate geophysical targets. The Timiskaming option agreement excludes the previously identified 95-2 kimberlite. Stornoway expects that exploration on these projects will commence in 2013, subject to receipt of all required permits and authorizations.

    Matt Manson, Stornoway''s President and CEO commented: "This option agreement allows us to move these promising exploration projects forward while allowing our management team to focus on the development of the Renard Diamond Project, our core asset. The bulk sample program at Qilalugaq, for which an Inferred Mineral Resource of 26 million carats was declared by Stornoway in June 2012, is designed to recover a large enough parcel of diamonds for a preliminary valuation and economic assessment. The Pikoo and Timiskaming work programs are designed to test for the presence of kimberlite with economic potential. At the end of each program Stornoway and the Optionee will be well placed to make a determination on whether to advance each project further within a joint venture, if results warrant."

    About the Qilalugaq, Pikoo, Timiskaming Exploration Projects

    The Qilalugaq Diamond Project, located on the Rae Isthmus of Nunavut close to the hamlet of Repulse Bay, includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes. The project was originally optioned by Stornoway and subsequently acquired from BHP Billiton Diamonds Inc. in July 2006 and July 2010, respectively. The project includes the 12.5 hectare Q1-4 kimberlite, the largest kimberlite pipe in the eastern Canadian Arctic. In June 2012 Stornoway announced an Inferred Mineral Resource at Q1-4 of 26.1 million carats from 48.8 million tonnes of kimberlite with an average +1 DTC total diamond content of 53.6 carats per hundred tonnes (cpht) extending from surface to a depth of 205m. Additional resource upside in the form of a target for further exploration was estimated at between 7.9 to 9.3 million carats from 14.1 to 16.6 million tonnes of kimberlite with an average +1 DTC total diamond content of 56.1 cpht, extending from 205m depth to 305m depth.

    The Pikoo Project comprises 33,374 hectares of contiguous claims located in central Saskatchewan, approximately 140 km east of La Ronge Saskatchewan and 100 km west of Flin Flon Manitoba and close to the community of Deschambault Lake. Previous geochemical and geophysical work by Stornoway has outlined the potential for several kimberlites with diamond potential on the property. In 2012 kimberlite float was discovered that returned a single microdiamond from 73.8 kilograms of material submitted for caustic dissolution.

    The Timiskaming Project comprises 3,865 hectares of claims located close to the community of New Liskeard, Ontario. Stornoway and its predecessor companies have discovered a total of 9 kimberlites out of over 50 kimberlites that are believed to have been discovered in the region. Stornoway''s 95-2 kimberlite, the best delineated and most promising Timiskaming kimberlite discovered to date, contains an Inferred Mineral Resource of 2.3 million carats from 20.2 million tonnes of kimberlite with an average +1 DTC total diamond content of 11.3 cpht extending from surface to a depth of 300m. The 95-2 kimberlite is excluded from the Timiskaming option agreement
     
  12. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Reports Positive Renard 65 Diamond Valuation Result

    Stornoway (SWY.TO) Reports Positive Renard 65 Diamond Valuation Result

    MONTREAL, QUEBEC--(Marketwired - April 11, 2013) -Stornoway Diamond Corporation (TSX:SWY) is pleased to provide the results of an independent valuation on the Renard 65 bulk sample diamonds recently recovered at the Renard Diamond Project in north-central Quebec. The valuation was undertaken in Antwerp, Belgium by WWW International Diamond Consultants ("WWW") utilizing their March 2013 price book. Highlights are as follows: •An average price of US$250 per carat on the total Renard 65 parcel of 997 carats. •A diamond price model for Renard 65 of US$180 per carat, with a "High" sensitivity of US$203 per carat and a "Minimum" sensitivity of US$169 carat. •Valuations of US$8,500 per carat and US$5,900 per carat on the two largest stones of 9.77 carats (G colour) and 6.40 carats (F colour) respectively.

    Matt Manson, President and CEO commented "This new valuation work has confirmed a high quality diamond population at Renard 65 that we anticipate will now allow the addition of a substantial quantity of new, open-pit resources to the project's mine plan. Two features of this work stand out. Firstly, the two large stones in the sample, previously announced by Stornoway, have been confirmed by WWW as amongst the most valuable stones recovered at the project to date. Their large impact in the parcel valuation has been tempered, appropriately, in the recommended base case price model, but their presence confirms a key characteristic of the Renard Project: upside value potential in large gems. Secondly, the WWW work has determined that Renard 65 possesses a diamond population with a different, and generally better, assortment of qualities than is seen in the other Renard kimberlite pipes. This has prompted a re-evaluation of the valuation models used in the project generally, which have previously been based on the assumption that Renard exhibits a single diamond population sampled by multiple pipes. The consequences of these findings for the project are significant, and positive."

    Renard 65 and the Renard Mine Plan

    The Renard 65 bulk sample was undertaken with a view to the potential conversion of material that is currently classified as an Inferred Mineral Resource to an Indicated Mineral Resource and, if warranted, to a Mineral Reserve. Within the larger Renard Mineral Resource inventory, Renard 65 contains an Inferred Mineral Resource of 3.7 million carats (representing 12.9 million tonnes at an average grade of 29 carats per hundred tonnes) to a depth of 290m, with an exploration potential estimated at between 6.8 and 13.7 million carats (29.5 to 41.6 million tonnes at between 23 and 33 cpht) from 290m to 775m in depth. As outlined in November 2011 Feasibility Study and subsequent Optimization Study, the Renard mine plan currently contemplates the mining of a 17.9 million carat Mineral Reserve from Renard 2, 3 and 4 from a combined open pit and underground mine at a processing rate of 6000 tonnes per day. Consistent with Canadian disclosure standards, this mine plan does not include the mining and processing of any of the project's Inferred Mineral Resources. The addition of new open-pit resources at Renard 65 is expected to allow an increase in processing capacity to 7000 tonnes per day and the extension of the project's reserve life.

    The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource

    Diamond Market Survey

    The Renard 65 valuation exercise has also afforded an opportunity to calibrate the value of the Renard 2, 3 and 4 diamond parcels in the current market against the May 2011 price assumptions that were used in the November 2011 Feasibility Study and subsequent Optimization Study. Over this period the diamond market has experienced a high degree of price volatility, including a sustained period of weakness in 2012. However, the market has recovered in the first quarter of 2013 and WWW have reported that prices for Renard-specific diamond assortments are currently within 7% to 8% of May 2011 levels.



    Table 1: Summary of Parcel Valuations1



    Kimberlite

    Sample Size (Carats)

    Average of Independent Valuations (May 2011)2

    WWW Valuation(May 2011)3

    Average of Independent Valuations (Mar 2013)2

    WWW Valuation(Mar 2013)3

    Price Change Due to Market



    Renard 2

    1,581

    $173

    $195

    $161

    $180

    -7%



    Renard 3

    2,752

    $171

    $190

    $157

    $173

    -8%



    Renard 4

    2,674

    $100

    $107

    $93

    $100

    -7%



    Renard 65

    997

    n/a

    n/a

    n/a

    $250

    n/a

    Notes 1.All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off. 2.Based on the average of 5 independent diamantaire valuations, as established in the May 2011 open market valuation exercise. This average is adjusted into March 2013 terms based on the application of the relative price changes seen by WWW over this period. 3.Based on WWW alone. In each case WWW's own valuation was higher than the average of the five valuations.

    Renard Diamond Price Models

    The May 2011 valuation exercise utilized valuations by 5 independent valuators, including WWW, from which diamond price models were derived for mine planning purposes. At that time, the diamond samples from each kimberlite pipe were interpreted by Stornoway to have similar characteristics and represented a single diamond population. This interpretation led to the recommendation that employing a single diamond price model, derived from combining the Renard 2 and Renard 3 datasets, would be the most appropriate method for establishing diamond price estimates for the Renard project.

    The determination that the Renard 65 kimberlite has a markedly different assortment of diamond qualities than the other kimberlite pipes has led WWW to recommend that individual price models for each pipe now be considered, and that the small differences in diamond quality and size distribution that can be observed in the diamond samples be treated as real. This has the effect of increasing the base case diamond price model for Renard 2 and decreasing the diamond price models for Renard 3 and Renard 4. The Renard kimberlites can now be said to exhibit similar, but different, diamond populations meriting individual consideration for pricing and valuation modeling. This is consistent with what is seen in most other diamond mines in the world that are based on a cluster of individual kimberlite pipes. Since Renard 2 contains 83% of the current Mineral Reserve at Renard, this adjustment to individual valuation models is expected to yield a net positive impact on project value.



    Table 2: Diamond Price Models1



    WWW Price Models (May 2011) Utilizing Common Value and Size Distribution Models

    WWW Price Models (Mar 2013) Utilizing Independent Value and Size Distribution Models



    Kimberlite

    Base Case Model

    Sensitivities

    Base Case Model

    Sensitivities



    High

    Minimum

    High

    Minimum



    Renard 2

    $182

    $236

    $163

    $190

    $214

    $151



    Renard 3

    $182

    $205

    $153

    $151

    $185

    $141



    Renard 4

    $112 ($164)2

    $185

    $105

    $104 ($150)2

    $168

    $98



    Renard 65

    n/a

    n/a

    n/a

    $180

    $203

    $169

    Notes 1.All prices in US$/carat. Samples utilizing a +1 DTC sieve size cut-off. 2.Should the Renard 4 diamond population prove to have a diamond population with a size distribution equal to the average of Renard 2 and 3, WWW have estimated that a base case diamond price model of $164 per carat would apply based on May 2011 pricing and $150 per carat based on March 2013 pricing.

    For purposes of comparison, updated diamond price models based on the same assumptions used in May 2011 have been estimated by WWW as US$166 per carat for Renard 2 and 3 (with a High sensitivity of US$183 and a Minimum sensitivity of US$155) and US$150 for Renard 4 (with a High sensitivity of US$168 and a Minimum sensitivity of US$140), consistent with recent market price movements.

    In the case of Renard 4, independent studies on diamond breakage and poor plant performance during the processing of the bulk sample have previously indicated that the size distribution of the Renard 4 diamond sample has been artificially modified during recovery. Should this prove to have been the case, a higher diamond price estimate for the Renard 4 kimberlite might still be expected.
     
  13. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Provides Renard Project Update

    Stornoway (SWY.TO) Provides Renard Project Update

    Progress on Project Financing, Access Road Construction, and Final Permitting



    MONTREAL, QUEBEC--(Marketwired - June 3, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide an update on progress at the Renard Diamond Project, Stornoway's 100% owned diamond development project located in north-central Québec. Stornoway's principal focus at this time is the timely completion of project financing on a schedule defined by the development of the Renard Mine Road, which is currently in construction under Stornoway's management. Stornoway's development team is also engaged in detailed mine engineering work, the completion of all outstanding permitting, and an update to the project's NI 43-101 Mineral Resource estimate following the completion of the recent bulk sample at the Renard 65 kimberlite.

    Matt Manson, Stornoway's President and CEO, stated: "We are pleased to report continued good progress on the construction of the Renard Mine Road, where we are forecasting completion on schedule and within budget. We are also encouraged by the progress made to date on project financing. Stornoway is pursuing a financing strategy based on a combination of debt, equity and the forward sale of diamonds. Despite challenging market conditions, the project has been well received by potential financing partners based on, among other things, its scale of resource, accessibility, strong social acceptability, and long potential mine life. Our aim is the completion of this financing on a schedule that allows us to utilize the Renard Mine Road for mine construction as soon as it becomes available for all-season traffic later in the year. This schedule offers Stornoway the opportunity to develop the Renard Project over a period when the diamond market is expected to strengthen markedly, and when the global mining sector has entered a period of cost stabilization and contractor availability."

    The Renard Mine Road

    On March 27th Stornoway announced that construction on the 97km long Renard Mine Road had commenced ahead of schedule due to favourable winter weather conditions. Good progress has continued to be made through April and May, and overall completion currently stands at 22% with 7 of 16 permanent bridges in place. First all-season vehicle access to Renard is currently scheduled for October 2013, well within the previously announced schedule.

    The cost of the Renard Mine Road has been budgeted at $77 million, including a 15% contingency. This cost is being funded through a credit facility provided to Stornoway by the Québec Ministère des Finances et de l'Économie bearing interest at the rate of 3.35% and amortized over a period of 15 years. Stornoway is also entitled to draw an additional $7.7 million bearing interest at the rate of 6.3%, for a total facility of up to $84.7 million, should extra contingencies be required. The schedule of repayment of these loans will be based on the financing and construction schedule of the Renard Diamond Project. To-date, Stornoway has drawn $26.3 million from the credit facility and anticipates completing construction work within the base budget.

    Project Financing

    On September 6th, 2012 Stornoway announced that it had entered into a Mandate Letter and draft term sheet with seven financial institutions (the "Mandated Lead Arrangers") in connection with a potential senior debt financing of up to US$475 million. Since that time, the Mandated Lead Arrangers have undertaken their due diligence and are well advanced in this process. When all due diligence has been completed, the parties will establish a final view on the quantum of debt, equity, forward sale proceeds and contingent overrun facilities required to be in place at closing. The Mandate Letter does not itself constitute a commitment to underwrite, provide or secure financing, which remains subject to, among other things, the terms and conditions of the term sheet attached to the Mandate Letter, credit and other approvals, and the completion of definitive loan documentation. However, based on the progress made to date, Stornoway has engaged in discussions with potential equity investors and off-takers with a view to completing the balance of project funding forthwith. These discussions are ongoing.

    Project Permitting and Social Acceptance

    The Renard Diamond Project Mining Lease was issued by the Québec Ministère des Ressources naturelles in October 2012 and the Québec Certificate of Authorization was issued by the Ministère du Développement Durable, de l'Environnement,de la Faune et des Parcs ("MDDEFP") in December 2012. The accompanying Government of Canada review of the project under the Canadian Environmental Assessment Act remains ongoing. Federal authorizations are required from Fisheries and Oceans Canada and Natural Resources Canada with respect to the Fisheries Act and the Explosive Act. Successful local hearings on the project were held by the federal regulators in June 2012, and on May 10th, 2013 the Canadian Environmental Assessment Agency ("CEEA") released its Comprehensive Study Report ("CSR"), which concluded that the Renard Project is "not likely to cause significant adverse environmental effects". The CEEA have invited public comments on the CSR before June 10th, 2013. Following completion of this process the Renard Project will become eligible to receive its federal approval, termed an "Environmental Assessment Decision", at which time all major permitting milestones will have been achieved.

    Stornoway received the transfer of the Certificate of Authorization for the construction of the Renard Mine Road from the MDDEFP in December 2012. Consistent with this transfer, and the reduced scope of the Renard Mine Road compared to the two-lane public highway that was previously contemplated, Stornoway filed an amendment to the road project's Environmental and Social Impact Assessment on February 15th, 2013 with the Evaluation Committee ("COMEX") of the James Bay and Northern Québec Agreement, the environmental protection regime for the James Bay Region of Québec. On May 30th Stornoway received the addendum to the road's Certificate of Authorisation relating to this amendment.

    Renard Resource Update

    Stornoway expects to complete an update to the project's National Instrument "NI" 43-101 Mineral Resource Estimate prior to the end of the second quarter. This new estimate is expected to incorporate the conversion of a portion of existing Inferred Mineral Resources at Renard 65 to Indicated Mineral Resources following the completion of the 2012 5000 tonne bulk sampling program and March 2013 diamond valuation exercise. In addition, Stornoway will update the existing Mineral Resource estimates for certain other kimberlite pipes, including Renard 2, based on new drill data received following normal-course geotechnical and hydrogeological studies over the past 12 months
     
  14. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Provides Renard Mine Road Update

    Stornoway Provides Renard Mine Road Update




    MONTREAL, QUEBEC--(Marketwired - June 19, 2013) - Stornoway Diamond Corporation (TSX:SWY) would like to provide an update on the status of construction activity on the Renard Mine Road, following the announcement on June 17th from the Alliance of Unionized Construction Workers of Québec of strike action. This strike action covers all unionized construction workers in Québec, and has resulted in a limited interruption of construction activities on the 97km segment of the Renard Mine Road currently under development by Stornoway. At the present time, we do not anticipate a material impact on the overall development schedule or budget for the Renard Mine Road, and we will continue to monitor the situation closely
     
  15. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Receives Federal Government Authorisation for Renard Project

    Stornoway (SWY.TO) Receives Federal Government Authorisation for Renard Project



    MONTREAL, QUEBEC--(Marketwired - Jul 16, 2013) - Stornoway Diamond Corporation (SWY.TO) is very pleased to announce the receipt of a positive Environmental Assessment Decision for the Renard Diamond Project from the Canadian Environmental Assessment Agency. The project has now received all of the major Québec and federal government authorizations required to commence construction.

    Matt Manson, Stornoway's President and CEO, stated: "Today's announcement of the completion of major project permitting at Renard comes just 18 months after the filing of the project's Environmental and Social Impact Assessment. This is an extraordinary achievement by Stornoway's environmental and community engagement team, who have been aided throughout by the close cooperation and support of the Crees of Eeyou Itschee and the communities of Chibougamau and Chapais. With this latest milestone achieved, we look forward to the opening the Renard Mine Road later this year, which will make Renard the first fully-permitted diamond mining project in Canada with a permanent road." Matt Manson continued: "With today's news we are also pleased to announce the promotion of M. Martin Boucher to the role of Vice President, Sustainable Development, in recognition of his exemplary leadership of Stornoway's permitting operations."

    The Renard Project falls under the social and environmental protection regimes of both the James Bay and Northern Québec Agreement and the Canadian Environmental Assessment Act. The project's Environmental and Social Impact Assessment ("ESIA") was filed with the regulators in December 2011, and public hearings were held in June and August of 2012. Stornoway received its Mining Lease from the Québec Ministère des Ressources naturelles in October 2012 and its Québec Certificate of Authorization from the Québec Ministère du Développement Durable, de l'Environnement,de la Faune et des Parcs in December 2012. Today's announcement represents the culmination of all public consultations and regulatory assessments arising from the project's ESIA. Operating permits can now be sought for site specific activities under the authority of the overall global authorizations.
     
  16. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Announces Updated Renard Mineral Resource Estimate

    Stornoway (SWY.TO) Announces Updated Renard Mineral Resource Estimate

    Successful Conversion of Renard 65 to Indicated Mineral Resource

    LONGUEUIL, QUEBEC--(Marketwired - Jul 23, 2013) - Stornoway Diamond Corporation (SWY.TO) is pleased to announce an updated Mineral Resource estimate by GeoStrat Consulting Services Inc. for the Renard Diamond Project, Stornoway's 100% owned flagship development project located in north-central Quebec. The update follows the successful completion of the Renard 65 bulk sample earlier in the year and, additionally, incorporates refinements to the geological models and diamond content estimates of certain other kimberlites made since the project's previous Mineral Resource statement was published in January 2011. Highlights of the new estimate are as follows: •A total Indicated Mineral Resource of 27.1 million carats representing an increase of 14.0% over the previous estimate; •The successful conversion of 2.3 million carats (7.86 million tonnes at 29.3 carats per hundred tonnes) of near-surface Renard 65 Inferred Mineral Resources to Indicated Mineral Resources, representing kimberlite amenable to open-pit mining to 150m depth; •A total Inferred Mineral Resource of 16.9 million carats, a 3.5% decrease compared to previous estimate, as increased estimates of Inferred Mineral Resources at Renard 2, 4 and 9 partially offset the conversion of material from the Inferred to the Indicated category at Renard 65. •An additional 25.7 to 47.8 million carats (54.6 to 74.9 million tonnes) have been designated a "Target for Further Exploration" to 775 m depth, below which each kimberlite remains open.

    The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any exploration target is conceptual in nature, and it is uncertain if further exploration will result in it being delineated as a mineral resource.

    Matt Manson, Stornoway's President and CEO, commented: "We are pleased to be able to confirm the successful conversion of a large part of the Renard 65 kimberlite to the Indicated Resource category, for its inclusion in the Renard mine plan. This open pit ore will allow us to utilize the designed expansion capacity of our plant from 6,000 to 7,000 tonnes per day, and is expected to provide for an extended reserve tail for the project. At the same time, we have been able to convert into new Inferred Resources the large quantity of diamonds contained within the brecciated country rock that is entrained within and around the Renard 2 kimberlite. These diamonds are derived primarily from the abundant hypabyssal kimberlite which has been drilled and sampled repeatedly within the Renard 2 eruptive envelope, but which has never been incorporated into previous resource estimates. A large part of this material is expected to be mined as waste or mining dilution, and has previously been designated a zero grade in our production schedule. Both of these resource additions offer near term production gains for the project." Matt Manson continued: "The updated Mineral Resource estimate has re-confirmed the very large upside of 25.7 to 47.8 million carats outside the formal Indicated and Inferred categories at Renard. Taken together, Renard represents one of the world's most important new sources of high value diamonds."

    Renard Diamond Project - July 2013 Mineral Resource Estimate

    The updated Mineral Resource estimate was completed in accordance with the Canadian Institute of Mining (CIM) Definition Standards for Mineral Resources and Mineral Reserves as incorporated by National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. It comprises the integration of kimberlite volumes, density, petrology and diamond content data derived from 88,887m of diamond drilling (457 holes), 6,151m of large diameter reverse circulation (RC) drilling (36 holes), 18.3t of samples submitted for microdiamond analysis, 600.8cts of diamonds (6,457 stones) recovered from RC drilling and 9,575.0cts of diamonds (92,940 stones) recovered from surface trenching and underground bulk sampling. The estimate also incorporates information derived from approximately 135 drill holes, 37 surface test pits and 12 trenches undertaken for geotechnical and hydrogeological purposes.

    Table 1: Total NI 43-101 Mineral Resource Estimate(1), (2), (3)

    INDICATED RESOURCE KIMBERLITE CONTAINED CARATS (millions) TONNES (millions) GRADE (cpht) (4), (5) Renard 2 Total 18.66 n/a 18.58 n/a 100 n/a Renard 2 (note 6) 18.38 +1.6 % 17.71 +0.4 % 104 +1.2 % Renard 2 CRB-2a 0.28 n/a 0.87 n/a 32 n/a Renard 3 1.82 -1.7 % 1.76 +0.5 % 103 -2.2 % Renard 4 4.31 +13.0 % 7.25 -- 60 +13.1 % Renard 65 2.3 n/a 7.87 n/a 29 n/a Renard 9 -- -- -- -- -- -- Lynx -- -- -- -- -- -- Hibou -- -- -- -- -- -- Total Indicated 27.09 +14.0 % 35.45 +33.1 % 76.4 -14.3 % INFERRED RESOURCE KIMBERLITE CONTAINED CARATS (millions) TONNES (millions) GRADE (cpht) (4), (5) Renard 2 Total 7.47 n/a 11.77 n/a 64 n/a Renard 2 (note 6) 6.23 +1.6 % 5.23 +0.4 % 119 +1.2 % Renard 2 CRB 1.24 n/a 6.54 n/a 19 n/a Renard 3 0.61 -4.2 % 0.54 +0.2 % 112 -4.5 % Renard 4 2.37 +13.7 % 4.75 -0.1 % 50 +13.7 % Renard 65 1.18 -68.3 % 4.93 -61.9 % 24 -16.8 % Renard 9 3.04 +13.2 % 5.7 +0.1 % 53 +13.2 % Lynx 1.92 -- 1.8 -- 107 -- Hibou 0.26 -- 0.18 -- 144 -- Total Inferred 16.85 -3.5 % 29.67 -4.6 % 57 +1.2 %

    (1) Resource categories follow the CIM Standards for Mineral Resources and Mineral Reserves. (2) Totals may not add due to rounding. (3) Changes from January 2011 Mineral Resource estimate shown in italics. (4) Carats per hundred tonnes. (5) Estimated at a +1 DTC sieve size cut-off. (6) Excludes discrete more dilute kimberlite facies not previously incorporated into January 2011 resource. Provided to facilitate more direct comparison with 2011 Mineral Resource estimate.

    n/a = not applicable or no direct comparison

    In addition to incorporating the results of the Renard 65 bulk sampling completed in February 2013, the new Mineral Resource estimate incorporates the results of recent geotechnical and hydrogeological drilling at Renard, where such drilling intersected the ore bodies, and utilizes a refined method for calculating country rock dilution within each kimberlite. The grade contribution provided by the abundant occurrences of hypabyssal kimberlite observed within each body's eruptive envelope has also been re-assessed. This has resulted in changes to the diamond content estimates of Renard 2, 3, 4 and 9, and a substantial quantity of Country Rock Breccia ("CRB") within Renard 2 being added to the Mineral Resource Estimate, including 0.87 million tonnes at 32 cpht (0.28 million carats) in the Indicated category and 6.54 million tonnes at 19 cpht (1.24 million carats) in the Inferred category. In the previous Mineral Resource Estimate, this CRB material was assigned a zero grade, and is treated within the Renard underground mine plan as waste or mining dilution.

    Material classified as a Target for Further Exploration (herein 'TFFE', and formerly known as "Potential Mineral Deposit") represents an estimate of potential upside that can be reasonably assumed for each body given the nature and grade of material within the mineral resource. The TFFE within the Renard kimberlite pipes has been determined by projecting kimberlite volumes from the base of the Inferred Resource to a depth of approximately 775m below surface, representing the base of current drilling as established at Renard 4. In the case of the Lynx and Hibou dykes, the TFFE was established on the basis of known drill intersections of kimberlite for which insufficient diamond sampling exists to adequately estimate a diamond resource grade. TFFE totals 25.7 to 47.8 million carats (54.6 to 74.9 million tonnes at diamond contents grades ranging from 25 to 168 cpht).

    Table 2: Total Target for Further Exploration (TFFE) (1), (2), (3)

    TARGET FOR FURTHER EXPLORATION KIMBERLITE RANGE OF CONTAINED CARATS (millions) RANGE OF TONNES (millions) RANGE OF GRADES (cpht) (4), (5) Renard 2 4.2 TO 7.3 4.0 to 4.6 104 to 158 Renard 3 0.8 TO 2.8 0.8 to 1.7 105 to 168 Renard 4 5.6 TO 11.8 11.1 to 15.4 50 to 77 Renard 65 7.3 TO 13.5 29.0 to 40.9 25 to 33 Renard 9 2.0 TO 4.3 3.9 to 6.3 52 to 68 Lynx 3.0 TO 3.8 3.1 to 3.2 96 to 120 Hibou 2.9 TO 4.3 2.7 to 2.9 104 to 151 25.7 TO 47.8 54.6 to 74.9 n/a Total TFFE +9.1% to -1.4% -0.8% to -0.8% n/a

    (1) Formerly known as Potential Mineral Deposit. TFFE does not constitute a mineral resource; refer to cautionary language contained within this release. (2) Totals may not add due to rounding. (3) Changes from January 2011 estimate shown in italics. (4) Carats per hundred tonnes. (5) Estimated at a +1 DTC sieve size cut-off.

    n/a = not applicable or no direct comparison

    Diamond valuation data utilized in the updated Mineral Resource estimate for the test of prospects of reasonable economic extraction is derived from the most recent valuation exercise undertaken in March 2013 by WWW International Diamond Consultants Inc ("WWW"; see Stornoway press release April 11, 2013). These diamond valuation estimates and price models are summarized in Table 3 below.

    Table 3: Diamond Price Models(1)

    DIAMOND VALUATIONS KIMBERLITE SAMPLE SIZE SAMPLE VALUATION(2) BASE CASE PRICE MODEL HIGH SENSITIVITY LOW SENSITIVITY (Carats) US$/Carat US$/Carat US$/Carat US$/Carat Renard 2 1,581 $ 180 $ 190 $ 214 $ 172 Renard 3 2,752 $ 173 $ 151 $ 185 $ 141 Renard 4 2,674 $ 100 $ 104 ($150) (3) $ 168 $ 98 Renard 65 997 $ 250 $ 180 $ 203 $ 169



    .
     
  17. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) Provides Update on Exploration Joint Ventures

    Stornoway (SWY.TO) Provides Update on Exploration Joint Ventures




    MONTREAL, QUÉBEC--(Marketwired - Aug. 7, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to provide an update on recent activities at certain non-core exploration properties under option to North Arrow Minerals Inc. ("North Arrow"; see Stornoway press release dated March 14, 2013). The option agreement allows North Arrow to acquire an 80% interest in each of the Qilalugaq, Pikoo and Timiskaming exploration projects by fully funding and completing a defined exploration program specific to each project. Drill programs have now been completed for the Pikoo and Temiskaming projects, with the following results.

    Pikoo Project, Saskatchewan

    During June and July, North Arrow completed ten drill holes (2,002 meters) at the Pikoo project, located approximately 120 kilometres east of La Ronge, Saskatchewan. Drilling targeted two separate areas with previously un-sourced kimberlite indicator trains. Hypabyssal kimberlite was intersected in nine of ten drill holes.

    The most significant discovery was in the "South" Pikoo area where target PK150 returned kimberlite intersections from three holes: 28.89 meters (hole DDH13PK06 at a -59° inclination), 22.12 meters (DDH 13PK08 at -49°) and 20.12 meters (DDH 13PK09 at -60°). The PK150 kimberlite is interpreted as a near vertical body with a drill defined strike length of at least 75 meters. It is described as a dark grey hypabyssal kimberlite containing abundant olivine as well as common ilmenite, common garnets (purple to orange) and less common chrome diopside. Internal country rock dilution is estimated as less than 5% and mantle nodules ranging up to 10 cm have been observed.

    In the "North" Pikoo area, five drill holes tested an east-west trending target over a 1.1 km strike length. The drill holes encountered between one and six individual kimberlite dykes ranging from 3 cm to 59 cm in width, interpreted to be vertical to steeply south dipping. Surficial Indicator mineral anomalies suggest the dyke system extends over a significantly greater strike length than tested by the current drill program.

    The Pikoo project drilling program has confirmed the existence of a new kimberlite field within the Sask Craton of northern Saskatchewan, as suggested by previous geochemical sampling. Kimberlite intersections from drill holes that tested PK150 will be submitted for microdiamond analyses. Results from this work are expected in approximately eight weeks.

    Temiskaming Project, Ontario

    During March and April of this year, North Arrow completed five drill holes (547 m) on four geophysical targets located up ice from an un-sourced kimberlite indicator mineral train. Kimberlite was not intersected in any of the drill holes.

    Terms of Option Agreement

    Under the terms of the option agreement, North Arrow (through assignment by 0954506 B.C. Ltd.) has the right to earn an 80% interest in each of the Temiskaming, Pikoo and Qilalugaq Projects by completing specified option work programs in each area over a specified period of time. If North Arrow completes the option work program and provides notice to Stornoway of its intent to vest an 80% interest in the project, Stornoway has a one-time right (the "Back-in Right") to buy-back a 20% interest in the project by paying to North Arrow an amount equal to three times the costs incurred in connection with the option work program. Upon earn-in by North Arrow, North Arrow and Stornoway will form a joint venture for the purpose of further potential exploration of each project, and the interests will be 80% North Arrow and 20% Stornoway, unless Stornoway exercises the Back-In Right, in which case the interests will be 60% North Arrow and 40% Stornoway.

    Following the completion of the Temiskaming work program, Stornoway informed North Arrow that it did not intend to exercise its Back-In Right, such that the interests in the Temiskaning Project now stand at 80% North Arrow and 20% Stornoway. The option work program at Pikoo is expected to be completed upon receipt of microdiamond analysis from the kimberlite intersections. Work at the Qilalugaq Project is not expected to be initiated until 2014.

    Qualified Persons

    The 2013 Pikoo drilling program was conducted under the direction and supervision of Barbara Kupsch, P.Geol., project manager for the Pikoo Project. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101. Mr. Hopkins has reviewed and approved the contents of this release.

    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
     
  18. mickymoose99

    mickymoose99 Member

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    Stornoway Diamond Corporation (SWY.TO) First Vehicle Arrives at Renard Project Site v

    Stornoway Diamond Corporation (SWY.TO) First Vehicle Arrives at Renard Project Site via New Permanent Road




    Renard Mine Road opens ahead of Schedule

    Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the opening of the Renard Mine Road to all-season vehicle traffic for the first time. All four road construction segments “A” to “D” of the Renard Mine Road and the Route 167 Extension that are currently under construction by Stornoway and the Québec Ministère des Transports (“MTQ”) have now been connected, allowing the full transit of construction vehicles from Temiscamie, at the end of the existing public highway, to the Renard project site 240 km to the north.

    Matt Manson, President and CEO commented: “With today’s news, it is now possible to drive directly to the Renard Project by permanent road. The connection of each construction segment has been achieved two months earlier than expected, and well ahead of the 4th Quarter, 2013 schedule established when construction of Stornoway’s portion of the road began in April. We are also forecasting final completion of the Renard Mine Road within budget. These achievements have been made possible by the strong performance of our construction contractors, all of whom are Cree or locally operated businesses, and the professionalism of Stornoway’s construction management team based in Longueuil, Québec.”

    Matt Manson continued: “The Renard Project is now permitted, connected by road, and ready to build. The project’s large Mineral Resource, and its extensive exploration upside, offers a project producing up to 2 million carats of diamonds per year and projected annual revenues of up to C$450m per year within its initial 11 year mine life. Renard is an outstanding, and unique, new diamond development project. Project financing discussions with lenders and prospective investors are ongoing and progressing well, with a view to first construction mobilization prior to the end of 2013.”

    Construction of the road that will provide all-season vehicle access to the Renard Project began in February 2012 as the “Route 167 Extension”. Under the terms of the November 2012 Framework Agreement between Stornoway and the Government of Québec, Québec is to complete the first 143km of road (segments “A” and “B”) as a 70km/hr two-lane gravel highway and Stornoway is undertaking the construction of a 50km/hr single lane mining road over the remaining 97km (segments “C” and “D”) as the “Renard Mine Road”. The cost of the Renard Mine Road was initially estimated at $77 million, including a 15% contingency. Under the terms of the December 2012 Financing Agreement between Stornoway and Québec, this cost is being funded through a credit facility provided to Stornoway bearing interest at the rate of 3.35% and amortized over a period of 15 years. In order to provide additional contingency, Stornoway is entitled to draw an additional $7.7 million bearing interest at the rate of 6.3%, for a total facility of up to $84.7 million. The schedule of repayment of these loans will be based on the financing and construction schedule of the Renard Diamond Project. To-date, Stornoway has drawn $61.4 million from the credit facility, and is forecasting a final cost to complete well within the base budget.
    The Renard Mine Road has opened initially for construction traffic only, and is not yet open for public use. Overall completion stands at 50%. To date, all temporary bridges have been completed, 9 of 16 permanent bridges have been installed, more than 80% of all culverts have been installed, and approximately 1.6 million tonnes of gravel has been extracted from 7 borrow pits.

    Throughout the road construction process, Stornoway has prioritized the granting of contracts to businesses located in the James Bay Region of Québec, in particular those associated with the Crees of Eeyou Istchee. Contractor productivity throughout has been excellent, and the greatest factor in Stornoway’s ability to advance the road so efficiently. Stornoway’s contractors include:
    •The Eskan Company, the Development Corporation of the Cree Nation of Mistissini, and Swallow-Fournier inc. for road construction;
    •Nordic Structures Bois, a wholly-owned subsidiary of Chantiers Chibougamau Ltée, for bridge construction;
    •Jos Ste-Croix & Fils Ltée of Chibougamau for construction management;
    •The Eenatuk Forestry Corporation for tree clearing;
    •The Kiskinchiish Corporation for camp services and catering; and
    •Petronor, a wholly owned Cree enterprise, for fuel supply.

    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 under National Instrument (“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 16.9 million carats classified as Inferred Mineral Resources, and 25.7 to 47.8million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at an estimated C$752 million, with a life of mine operating cost of C$57.63/tonne giving a 67% operating margin over an initial 11 year mine life. 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.

    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 Officer
     
  19. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) officially opens road leading to Quebec's first diamond mine

    In presence of Martine Ouellet, Natural Resources Minister -

    Stornoway (SWY.TO) officially opens road leading to Quebec's first diamond mine


    MONTREAL , Oct. 3, 2013 /CNW Telbec/ - Stornoway Diamonds, along with Quebec's Natural Resources Minister Martine Ouellet , invites journalists to a news conference on Monday, October 7 , for the inauguration of the extension of Highway 167 and the Renard mine road, which will enable construction vehicles to travel from Témiscamie (km zero) to the Renard diamond mine site, 240 km to the north. The completion of this road is an important milestone that will enable Stornoway to begin construction of the "Renard" diamond mine, the first such mine in Quebec .
    For this activity, Stornoway is offering journalists a unique opportunity to visit the site of the Renard diamond deposit, located some 275 km north of the Cree community of Mistissini and 350 km north of Chibougamau , in the James Bay region of north-central Quebec . During the visit, you will be able to speak with Patrick Godin , Stornoway's chief operating officer, about progress on the diamond mine project, the diamond industry and its economic importance, Stornoway's relations with communities and the labour challenges that lie ahead.

    Stornoway is especially proud to inaugurate this major regional infrastructure, which will open up the territory and provide access to this vast region, rich in both breathtaking landscapes and natural resources.

    DATEBOOK


    WHO: Inauguration of extension of Hwy 167 and Renard mine road and tour of Stornoway's Renard project site

    WHO:



    Martine Ouellet, Natural Resources Minister
    Luc Ferland, MNA for Ungava and parliamentary assistant to the Natural Resources Minister (northern affairs)
    Richard Shecapio, chief of the Mistissini Cree Nation
    Manon Cyr, mayor of Chibougamau
    Patrick Godin, chief operating officer, Stornoway Diamonds

    WHEN: Monday, October 7, 2013


    SCHEDULE:


    Time Activity
    6:40 a.m. Departure of flight from Saint-Hubert airport to Chibougamau
    10 a.m. News conference and inauguration of the road at km zero of the Mont Otish road
    11 a.m. Transport by helicopter to Renard mine site
    12:30 p.m. Tour of Renard mine site
    14:00 p.m. Flyover the Renard mine site and road
    6 p.m. Arrival, Saint-Hubert airport


    RSVP to Amélie Cliche (acliche@national.ca) by 5 pm . on Thursday, October 3 .
     
  20. mickymoose99

    mickymoose99 Member

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    Stornoway (SWY.TO) to Commence Early Construction of Renard Mine Airport

    Stornoway (SWY.TO) to Commence Early Construction of Renard Mine Airport

    Made Possible by the Expected Completion of the Renard Mine Road Ahead of Schedule and Below Budget




    Made Possible by the Expected Completion of the Renard Mine Road Ahead of Schedule and Below Budget


    MONTREAL, QUEBEC--(Marketwired - Oct. 10, 2013) - Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that owing to the expected completion of the Renard Mine Road significantly below budget, an agreement has been reached with the Government of Québec to allow the residual amount of the financing facility established for the construction of the road to be utilized for the immediate construction of the Renard Mine Airport. The early construction of permanent airstrip facilities close to the Renard Diamond Project will better assist Stornoway in mitigating construction risk at the Renard Diamond Project during 2014 and 2015, and will create a new regional aerodrome enhancing air transport in the Monts Otish region of Québec.

    Construction of the permanent road leading to the Renard Project began in February 2012 as the "Route 167 Extension". Under the terms of a November 2012 Framework Agreement between Stornoway and the Government of Québec, Québec is completing the first 143km of road (segments "A" and "B") as a 70km/hr two-lane gravel highway and Stornoway is undertaking the construction of a 50km/hr single lane mining road over the remaining 97km (segments "C" and "D"; the "Renard Mine Road"). On September 3rd, 2013 Stornoway announced that all four segments had been successively connected, allowing the first full transit of vehicles to the project site well ahead of schedule.

    The cost for the Renard Mine Road was originally estimated at $77 million, including a 15% contingency. Under the terms of a December 2012 Financing Agreement between Stornoway and Québec, this cost is being funded through a credit facility provided to Stornoway bearing interest at the rate of 3.35% and amortized over a period of 15 years. The schedule of repayment of this loan is based on the financing and construction schedule of the Renard Diamond Project.
    Stornoway is now forecasting the cost to complete the Renard Mine Road at $70 million, approximately 10% below budget. Stornoway and Québec have agreed that the balance of funds within the base credit facility of $77 million may be drawn for the construction of the Renard Mine Airport. The airport's capital cost estimate contained within the January 2013 Renard Optimization Study was $15.5 million, including all site infrastructure and operating facilities. Given the competitive cost environment currently existing in Québec for major capital projects, and the on-site presence of Stornoway's contractors, fuel and equipment already mobilized for road construction, Stornoway has estimated that sufficient funds will be available within the road credit facility for the completion of all major civil works at the airport, well within budget and schedule. Work will commence immediately
     
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