Stornoway Diamond Corporation (TSX:SWY)
(the "Corporation" or "Stornoway") is pleased to
announce an update to the Renard Diamond Project Mineral Resource
estimate.
Highlights
- A 16% increase in the Indicated Mineral Resources of Renard 2
to 21.6 million carats achieved through the conversion of Inferred
Mineral Resources to 700 meters depth.
- An 11% increase in the total Indicated Mineral Resources of the
project (inclusive of the Mineral Reserve) to 30.2 million
carats
- New Inferred Mineral Resources at Renard 2 defined to 850
meters depth.
- The inclusion of over 4 million tonnes of lower grade Renard 2
Country Rock Breccia ("CRB") material in the Indicated Mineral
Resource category for the first time.
- Substantial new exploration potential at Renard 2 and Renard 3
identified to 1,250 meters depth, where both kimberlites are
interpreted to retain sizeable widths and remain open.
- Updated mine plan now under development to incorporate
increased Indicated Mineral Resources.
Matt Manson, President and CEO, commented "Midway through our
construction of the Renard Diamond Project, we are pleased to be
reporting today continued growth in the project's overall Indicated
Resources. As we explore these ore bodies at depth, we are
delineating new Mineral Resources that represent potential mine
production well past the current 11 year Mineral Reserve based mine
life. Our drilling has shown that while Renard 2 at 600 meters
depth is moderately smaller in cross-section than we had previously
estimated, it is continuing downwards to a depth and on a scale
that makes it unique amongst Canadian kimberlites. In a development
that is particularly exciting, we now see the potential to mine the
high grade Renard 3 kimberlite deeper than we had previously
thought possible, following its re-discovery during the drilling at
1,000 meters depth, 500 meters below the previous drill
intersection. The successful addition of over 4 million tonnes of
lower grade CRB material at the top of Renard 2 into the Indicated
category also now allows us to contemplate additional diamond
production potential in both the open pit and underground mine,
where CRB was previously designated as either zero grade stripping
waste or zero grade mining dilution. We will now incorporate all of
these Mineral Resource changes into an updated mine plan due for
completion in the second calendar quarter 2016 prior to our
production start-up."
Support materials that illustrate the updated Renard Mineral
Resource Estimate can be found on Stornoway's website at
www.stornowaydiamonds.com/English/our-business/renard-project/technical-resources/default.aspx.
Stornoway will file a Technical Report for the Renard Diamond
Project under National Instrument ("NI") 43-101 – Standards for
Disclosure for Mineral Projects ("NI 43-101") within 45 days of
this release.
September 2015 Mineral Resource Estimate
Changes to the Mineral Resources and exploration potential of
the Renard 2 kimberlite were derived from a deep directional drill
program completed in 2014. In total, 12,493 meters of new drilling
was completed at Renard 2, with the deepest kimberlite intersection
being at 1,012 vertical metres below surface. In support of this
work approximately 4.8 tonnes of Renard 2 samples were processed
for microdiamond analysis by caustic dissolution and 57.4 tonnes of
samples processed for macrodiamond analysis by dense media
separation, with additional thin section analysis, indicator
mineral characterization, geochemical analysis, density
determinations, dilution measurements and geological modeling.
Table 1: Renard NI 43-101 2015 Mineral Resource
Estimate
Changes from July 2013 Mineral Resource estimate shown in
italics
Indicated Mineral
Resources(1,2,4) |
|
Contained Carats
(millions) |
Tonnes
(millions) |
Grade
(cpht)(3) |
Renard 2, All Units |
21.58 |
+15.6% |
25.70 |
+38.3% |
84 |
-16.4% |
Renard 2, w/o CRB-2A,
CRB |
20.39 |
+11.0% |
20.52 |
+15.9% |
99 |
-4.3% |
CRB-2A |
0.29 |
+2.6% |
0.90 |
+2.6% |
32 |
-- |
CRB |
0.90 |
n/a |
4.28 |
n/a |
21 |
n/a |
Renard 3 |
1.86 |
+2.3% |
1.82 |
+3.4% |
102 |
-1.0% |
Renard 4 |
4.44 |
+3.0% |
7.25 |
-- |
61 |
+3.0% |
Renard 65 |
2.30 |
-- |
7.87 |
-- |
29 |
-- |
Total Indicated
Mineral Resources |
30.17 |
+11.4% |
42.63 |
+20.2% |
71 |
-7.4% |
Inferred Mineral
Resources(1,2) |
|
Contained Carats
(millions) |
Tonnes
(millions) |
Grade
(cpht)(3) |
Renard 2, All Units |
3.88 |
-48.0% |
6.59 |
-44.0% |
59 |
-7.2% |
Renard 2, w/o CRB |
3.36 |
-46.1% |
4.08 |
-22.0% |
82 |
-30.9% |
CRB |
0.53 |
-57.6% |
2.51 |
-61.6% |
21 |
+10.5% |
Renard 3 |
0.61 |
-- |
0.54 |
-- |
112 |
-- |
Renard 4 |
2.46 |
+3.5% |
4.75 |
-- |
52 |
+3.5% |
Renard 65 |
1.18 |
-- |
4.93 |
-- |
24 |
-- |
Renard 9 |
3.04 |
-- |
5.70 |
-- |
53 |
-- |
Lynx |
1.92 |
-- |
1.80 |
-- |
107 |
-- |
Hibou |
0.26 |
-- |
0.18 |
-- |
144 |
-- |
Total Inferred
Mineral Resources |
13.35 |
-20.8% |
24.49 |
-17.5% |
54 |
-4.0% |
Notes
1 Resource categories follow the CIM Standards for Mineral
Resources and Mineral Reserves.
2 Totals may not add due to rounding.
3 Carats per hundred tonnes. Estimated at a +1 DTC sieve size
cut-off.
4 Diamond valuation data utilized for the test of prospects of
reasonable economic extraction are derived from a diamond valuation
exercise undertaken in March 2014 (see Stornoway Annual Information
Form dated July 2015).
The Indicated Mineral Resources at Renard 3 have also been
revised to accommodate changes in the shape of the kimberlite at
surface following the discovery of ore earlier than expected during
pre-stripping. The exploration potential of Renard 3 has increased
due to implications for a deep extension that arose during the 2014
drilling. Additionally, the processing of 0.9 tonnes of Renard 4
samples for microdiamond analysis by caustic dissolution has
prompted a revision of the Indicated and Inferred Mineral Resource
grades for this kimberlite. Geological modeling and related work is
ongoing for Renard kimberlites 1, 7 and 10 with a view to assessing
their exploration potential for future Mineral Resources. This work
is nearing completion and will be reported separately.
This updated Mineral Resource estimate for the Renard Diamond
Project was completed in accordance with the Canadian Institute of
Mining (CIM) Definition Standards for Mineral Resources and Mineral
Reserves as incorporated by NI 43-101, Standards of Disclosure for
Mineral Projects. It comprises the integration of kimberlite
volumes, density, petrology and diamond content data derived from
101,078 meters of diamond drilling (497 holes), 6,151 meters of
large diameter reverse circulation (RC) drilling (36 holes), 23.7
tonnes of samples submitted for microdiamond analysis, 196 carats
of diamonds (3,107 stones) recovered from drill core, 605 carats of
diamonds (7,181 stones) recovered from RC drilling and 4,404 carats
of diamonds (40,521 stones) recovered from underground bulk
sampling and 5,273 carats of diamonds (53,224 stones) recovered
from surface and trench sampling. The estimate also incorporates
information derived from additional drill holes, surface test pits
and trenches undertaken for geotechnical, hydrogeological and
infrastructure construction purposes.
Table 2: Renard Targets for Further
Exploration
Changes from July 2013 shown in italics
Target for
Further Exploration(1,2) |
|
Contained Carats
(millions) |
Tonnes
(millions) |
Grade
(cpht)(3) |
Renard 2, All Units |
3.7 |
to |
15.5 |
6.1 |
to |
15.5 |
60 |
to |
100 |
Renard 3 |
3.6 |
to |
6.4 |
3.4 |
to |
3.8 |
105 |
to |
168 |
Renard 4 |
5.6 |
to |
11.9 |
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 |
2.8 |
to |
4.4 |
2.7 |
to |
2.9 |
104 |
to |
151 |
Total
TFFE |
27.8 +8% |
to |
59.7 +25% |
59.3 +9% |
to |
88.0 +17% |
|
|
|
Notes
1 Target for Further Exploration: represents potential upside
that can be reasonably assumed given the nature and grade of
material within the current 2015 Mineral Resource. The Renard 2
shape has been projected 250m below the deepest kimberlite
intersection at 1,000m depth. Tonnage and grade ranges are not
directly applicable to potential total carats.
2 Totals may not add due to rounding.
3 Carats per hundred tonnes. Potential at a +1 DTC sieve size
cut-off.
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, there has been insufficient
information to define a mineral resource and it is uncertain if
further exploration will result in it being delineated as a mineral
resource.
Changes Compared to the 2013 Mineral Resource
Estimate
Renard 2
The total Indicated Mineral Resources at Renard 2 are estimated
to have increased 16%, or 2.92 million carats, to 21.58 million
carats at a depth cut-off of 700m (comprising 25.70 million tonnes
at a grade of 84 carats per hundred tonnes, or "cpht"). This
estimate includes 0.90 million carats (comprising 4.28 million
tonnes at a grade of 21 cpht) derived from CRB material between
surface and 200 meters depth, which was previously categorized as
Inferred Mineral Resources and which forms a distinct halo around
the higher grade units. The inclusion of this material in the total
estimate is the principal reason for the reduction in overall
Indicated Resource grade from 100 cpht to 84 cpht. Of note, the
grades and proportions of the underlying Kimb2a and Kimb2b
geological units, which comprise the bulk of the Renard 2 Indicated
Resource from surface to 700 meters depth and which were re-sampled
in the new drilling, have not changed materially from the previous
estimate.
Table 3: Renard 2 Average Mineral Resource Grades, by
Geological Unit
Changes from July 2013 Mineral Resource estimate shown in
italics
Within the
Indicated Mineral Resources |
|
Average Grade
(cpht)(1) |
Average Dilution
(%)(2,3) |
Kimb 2a ("Blue") |
76 |
+3.0% |
52 |
-0.9% |
Kimb 2b ("Brown") |
145 |
+1.0% |
30 |
-0.9% |
Kimb 2c (HK) |
229 |
+0.5% |
12 |
-3.1% |
CRB-2a |
32 |
-- |
93 |
-- |
CRB |
21 |
n/a |
96 |
n/a |
Within the
Inferred Mineral Resources |
|
Average Grade
(cpht)(1) |
Average Dilution
(%)(2,3) |
Kimb 2a ("Blue") |
67 |
-2.4% |
65 |
+9.2% |
Kimb 2b ("Brown") |
145 |
+0.3% |
30 |
+1.5% |
Kimb 2c (HK) |
229 |
+0.5% |
12 |
-3.1% |
CRB |
21 |
+10.5% |
96 |
-- |
Notes
1 Carats per hundred tonnes. Estimated at a +1 DTC sieve size
cut-off.
2 Represents the average amount of non-diamond bearing country
rock estimated within each geological unit.
3 The Kimb 2c (Hypabyssal Kimberlite, or "HK") unit is a
constituent component of each of the Kimb2a, Kimb2b, CRB and CRB-2a
units.
Between 500 and 600 meters depth the new drilling shows Renard 2
to be 1.55 hectares in dimension compared to 1.89 hectares in the
previous estimate, below which the kimberlite appears to taper
gently with depth on a slight easterly plunge. New Indicated
Mineral Resources have been added between 600 and 700 meters,
representing conversion from the previous Inferred Mineral
Resources. All Mineral Resources above 700 meters depth are
expected to be accessible for mining utilizing the underground mine
infrastructure currently under construction at the project.
Inferred Mineral Resources of 3.88 million carats (comprising
6.59 million tonnes at 59 cpht) have been estimated between 700 and
850 meters depth, including 0.53 million carats derived from
additional CRB material below 200 meters depth (comprising 2.51
million tonnes at 21 cpht). The Inferred Mineral Resources have an
estimated grade of 82 cpht (after removal of the effect of the CRB
unit) compared to 99 cpht in the overlying Indicated Mineral
Resources (as calculated on the same basis) due to a larger
proportion of the Kimb2a unit over Kimb2b in this section of the
kimberlite. It might be expected that the ratio of Kimb2a to Kimb2b
within Renard 2 will continue to vary with depth, a feature now
recognized as characteristic of this ore body.
Exploration potential exists at Renard 2 in the form of a Target
for Further Exploration ("TFFE") to 1,250 meters depth at between
3.7 and 15.5 million carats (comprising 6.1 to 15.5 million tonnes
between 60 and 100 cpht). Each of the four principal geological
units of Renard 2 (kimb2a, kimb2b, kimb2c and CRB) have been
intersected to the base of the current drilling, indicating that
the kimberlite is maintaining its emplacement style over at least
1,000 meters of vertical depth. At this level Renard 2 is
interpreted to maintain a substantial cross sectional area of
between 0.62 and 1.38 hectares (based on the "low" and "high" range
interpretations of the TFFE) and to remain open to depth. There is
no indication that the kimberlite's "root zone" has been
reached.
Renard 3
The total Indicated Mineral Resources at Renard 3 are estimated
to have increased modestly by 2% to 1.86 million carats at a depth
cut-off of 255 meters (comprising 1.82 million tonnes at a grade of
102 cpht). No change has been made to the Inferred Mineral
Resources. The exploration potential of Renard 3 is interpreted to
have increased considerably after the discovery of a 126.6 meter
intersection of kimberlite in drill hole R2-81J between 942.2 and
1,068.8 meters downhole that appears to represent the deep
extension of Renard 3 over a true width of 47 meters on a slight
westerly plunge. No drilling exists between the base of the
Inferred Mineral Resources at 405 meters depth and this new
intersection. This represents over 500 meters of untested
exploration potential and a new TFFE for Renard 3 of between 3.6
and 6.4 million carats (comprising 3.4 to 3.8 million tonnes
between 105 and 168cpht). No mining has previously been
contemplated at Renard 3 below the existing Inferred Mineral
Resources. The potential for new high grade resources at mineable
widths so close to the Renard 2 underground mine infrastructure
makes Renard 3 a priority for future exploration drilling. With the
Renard 2 and Renard 3 kimberlites now appearing to plunge towards
each other, a potential convergence is implied in the high range
TFFE models at approximately 1,000 meters depth.
Renard 4
The total Indicated Mineral Resources at Renard 4 are estimated
to have increased modestly by 3% to 4.44 million carats at a depth
cut-off of 250 meters (comprising 7.25 million tonnes at a grade of
61 cpht). Inferred Mineral Resources are estimated to have
increased by 4% to 2.46 million carats at a depth cut-off of 390
meters (comprising 4.75 million tonnes at a grade of 52 cpht).
These changes arise from an adjustment to the interpreted grade of
the Kimb4c geological unit following the processing of additional
samples collected from archived drill core. No changes have been
made to other Renard 4 units compared to the previous estimate.
Next Steps: Updated Mine Plan
The September 2015 Mineral Resource Estimate will now be
incorporated into an updated mine plan for the Renard Project. The
new plan will contemplate extended mine production from the new
Mineral Resources, a deepening of the Renard 2-Renard 3 open pit,
the commensurate deepening of the underground mine infrastructure,
the inclusion of Indicated Mineral Resources at Renard 65 for open
pit mining, and an optimized schedule for plant commissioning and
ramp-up. This work is expected to be completed in the second
quarter of 2016 and will include a revised statement of project
Mineral Reserves, if warranted.
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. On July 8th 2014
Stornoway announced the completion of a $946 million1 project
financing transaction to fully fund the project to production, and
construction commenced on July 10th, 2014. First ore is scheduled
to be delivered to the plant in the second half of 2016 with
commercial production scheduled for the 2nd quarter of 2017. In
January 2013, Stornoway released the results of an Optimized
Feasibility Study at Renard which highlighted the potential of the
project to become a significant producer of high value rough
diamonds over a long mine life. Probable Mineral Reserves, as
defined in NI 43-101, stand at 17.9 million carats. Total Indicated
Mineral Resources as at September 2015, inclusive of the Mineral
Reserve, stand at 30.2 million carats, with a further 13.35 million
carats classified as Inferred Mineral Resources, and 27.8 to 59.7
million carats classified as non-resource exploration upside.
Average annual diamond production is forecast at 1.6mcarats/year
over the first 11 years of mining, at an average valuation of
US$190/carat based on a March 2014 assessment by WWW International
Diamond Consultants Ltd. Readers are cautioned that the potential
quality and grade of any target for further exploration is
conceptual in nature, there has been insufficient exploration to
define a Mineral Resource and it is uncertain if further
exploration will result in the target being delineated as a Mineral
Resource. All kimberlites remain open at depth. Readers are
referred to the technical report dated February 28th, 2013 in
respect of the January 2013 Optimization Study for further details
and assumptions relating to the project. Disclosure of a scientific
or technical nature in this press release was prepared under the
supervision of Patrick Godin, P.Eng. (Québec), Chief Operating
Officer and Robin Hopkins, P.Geol. (NT/NU), Vice President,
Exploration, both "qualified persons" under NI 43-101. Darrell
Farrow, PrSciNat, P.Geo.(BC), Ordre des geologues du Quebec
(Special Authorisation # 332) of GeoStrat Consulting Services Inc.
is the independent Qualified Person responsible for preparation of
the mineral resource estimate for the Renard Diamond Project.
GeoStrat Consulting Services Inc, a mineral resources consultancy,
focuses on client interaction and involvement in developing
resource models, and has experience in exploration, geological
modeling, resource evaluation, production, resource reconciliation
and accounting of diamond deposits around the globe. GeoStrat has
verified the results disclosed herein with respect to the mineral
resources, and has conducted appropriate verification on the
underlying data, including visitations to the Renard site and the
primary process laboratories.
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
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation. This information
and these statements, referred to herein as "forward-looking
statements", are made as of the date of this press release and the
Corporation does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
law.
These forward-looking statements include, among others,
statements with respect to Stornoway's objectives for the ensuing
year, Stornoway's medium and long-term goals, and strategies to
achieve those objectives and goals, as well as statements with
respect to Stornoway's beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. Although management
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
Forward-looking statements relate to future events or future
performance and reflect current expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to: (i) the amount of Mineral Resources and exploration
targets; (ii) the amount of future production over any period;
(iii) net present value and internal rates of return of the mining
operation; (iv) assumptions relating to recovered grade, average
ore recovery, internal dilution, mining dilution and other mining
parameters set out in the 2011 Feasibility Study or the
Optimization Study; (v) assumptions relating to gross revenues,
operating cash flow and other revenue metrics set out in the 2011
Feasibility Study or the Optimization Study; (vi) mine expansion
potential and expected mine life; (vii) expected time frames for
completion of permitting and regulatory approvals related to
construction activities at the Renard Diamond Project; (viii) the
expected time frames for the completion of the open pit and
underground mine at the Renard Diamond Project; (ix) the expected
time frames for the completion of construction, start of mining and
commercial production at the Renard Diamond Project and the
financial obligations or costs incurred by Stornoway in connection
with such mine development; (x) future exploration plans; (xi)
future market prices for rough diamonds; (xii) the economic
benefits of using liquefied natural gas rather than diesel for
power generation; (xiii) sources of and anticipated financing
requirements; (xiv) the effectiveness, funding or availability, as
the case may require, of the Stream, the Senior Secured Loan, the
COF and the Equipment Facility and the use of proceeds therefrom;
(xv) the Corporation's expectations regarding receipt of the
remaining deposits under the Stream and its ability to meet its
delivery obligations thereunder; and (xvi) the impact of the
Financing Transactions on the Corporation's operations,
infrastructure, opportunities, financial condition, access to
capital and overall strategy. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or
phrases such as "expects", "anticipates", "plans", "projects",
"estimates", "assumes", "intends", "strategy", "goals",
"objectives", "schedule" or variations thereof or stating that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements.
Forward-looking statements are made based upon certain
assumptions by Stornoway or its consultants and other important
factors that, if untrue, could cause the actual results,
performances or achievements of Stornoway to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business prospects and strategies and the environment in
which Stornoway will operate in the future, including the price of
diamonds, anticipated costs and Stornoway's ability to achieve its
goals, anticipated financial performance, regulatory developments,
development plans, exploration, development and mining activities
and commitments. Although management considers its assumptions on
such matters to be reasonable based on information currently
available to it, they may prove to be incorrect. Certain important
assumptions by Stornoway or its consultants in making
forward-looking statements include, but are not limited to: (i)
required capital investment and estimated workforce requirements;
(ii) estimates of net present value and internal rates of return;
(iii) receipt of regulatory approvals on acceptable terms within
commonly experienced time frames; (iv) anticipated timelines for
completion of construction, commencement of mine production and
development of an open pit and underground mine at the Renard
Diamond Project, which heavily depend, among other things, on
adequate availability and performance of skilled labour,
engineering and construction personnel, performance of mining and
construction equipment and timely delivery of components; (v)
anticipated geological formations; (vi) market prices for rough
diamonds and the potential impact on the Renard Diamond Project;
(vii) the satisfaction or waiver of all conditions under each of
the Stream, the Senior Secured Loan, the COF and the Equipment
Facility to allow the Corporation to draw on the funding available
under those financing elements for the completion of the
development and construction of the Renard Diamond Project; (viii)
Stornoway's interpretation of the geological drill data collected
and its potential impact on stated Mineral Resources and mine life;
(ix) future exploration plans and objectives; and (x) the receipt
of the remaining deposits under the Stream and the Corporation's
ability to meet its delivery obligations thereunder. Additional
risks are described in Stornoway's most recently filed Annual
Information Form, annual and interim MD&A, and other disclosure
documents available under the Corporation's profile at:
www.sedar.com.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. We caution readers not to place
undue reliance on these forward-looking statements as a number of
important risk factors could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates, assumptions and intentions expressed in
such forward-looking statements. These risk factors may be
generally stated as the risk that the assumptions and estimates
expressed above do not occur, including the assumption in many
forward-looking statements that other forward-looking statements
will be correct, but specifically include, without limitation: (i)
risks relating to variations in the grade, kimberlite lithologies
and country rock content within the material identified as Mineral
Resources from that predicted; (ii) variations in rates of recovery
and breakage; (iii) the uncertainty as to whether further
exploration of exploration targets will result in the targets being
delineated as Mineral Resources; (iv) developments in world
diamond markets; (v) slower increases in diamond valuations
than assumed; (vi) risks relating to fluctuations in the
Canadian dollar and other currencies relative to the US dollar;
(vii) increases in the costs of proposed capital and operating
expenditures; (viii) increases in financing costs or adverse
changes to the terms of available financing, if any; (ix) tax
rates or royalties being greater than assumed; (x) uncertainty
of results of exploration in areas of potential expansion of
resources; (xi) changes in development or mining plans due to
changes in other factors or exploration results; (xii) changes
in project parameters as plans continue to be refined;
(xiii) risks relating to the receipt of regulatory approvals
or the implementation of the existing Impact and Benefits Agreement
with aboriginal communities; (xiv) the effects of competition
in the markets in which Stornoway operates; (xv) operational
and infrastructure risks; (xvi) execution risk relating to the
development of an operating mine at the Renard Diamond Project;
(xvii) failure to satisfy the conditions to the effectiveness,
funding or availability, as the case may require, of each of the
Stream, the Senior Secured Loan, the COF and the Equipment
Facility; (xviii) changes in the terms of the Stream, the
Senior Secured Loan, the COF or the Equipment Facility;
(xix) the funds of the Stream, the Senior Secured Loan, the
COF or the Equipment Facility not being available to the
Corporation; (xx) the Corporation being unable to meet its
delivery obligations under the Stream; (xxi) future sales or
issuances of Common Shares lowering the Common Share price and
diluting the interest of existing shareholders; and (xxi) the
additional risks described in Stornoway's most recently filed
Annual Information Form, annual and interim MD&A and
Stornoway's anticipation of and success in managing the foregoing
risks. Stornoway cautions that the foregoing list of factors that
may affect future results is not exhaustive, and new, unforeseeable
risks may arise from time to time.
1 For illustrative purposes. Assumes a C$: US$ conversion
rate of $1.10. Actual proceeds of each financing tranche are
measured at the C$: US$ exchange rate in effect the date the funds
are received.
CONTACT: For more information, please contact
Matt Manson (President and CEO) at 416-304-1026 x2101
or Orin Baranowsky (Director, Investor Relations) at 416-304-1026 x2103
or toll free at 1-877-331-2232
Pour plus d'information, veuillez contacter
M. Ghislain Poirier, Vice-president Affaires publiques de Stornoway au
418-254-6550, gpoirier@stornowaydiamonds.com
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **