Star Diamond expands Star-Orion indicated resources, Saskatchewan

Star Diamond Corp. [TSX-DIAM] reported a significant increase in the estimated mineral resources for the Star-Orion South diamond project, Saskatchewan.

Highlights: Indicated mineral resources on Star have increased 22% to 34.8 million carats and the grade has increased 20% to 19.4 cpht (carats per hundred metric tonnes).

Indicated mineral resources on Orion South have increased 37% to 36.9 million carats and the grade has increased 32% to 17.9 cpht.

Star Diamond has determined that no additional bulk sampling is required on the Orion South kimberlite for the rigorous estimation of these mineral resources and this results in the savings of millions of dollars in exploration expenditures and shaves significant time off the completion of the prefeasibility study (PFS).

Ewan Mason, President and CEO, said: “Our technical team and outside consultants have been working extremely hard for the last year and a half to arrive at this incredible outcome. Not only has the requirement for a bulk sample costing tens of millions of dollars been removed but we have reduced the time to complete a feasibility study significantly. We intend to have a feasibility study completed by the end of 2026, with hopes that shovels could be in the ground within three to five years, subject to project financing, permitting and updated environmental approvals. Additionally, such a significant increase in grade and total carats across both pipes bodes well for project economics. It is full speed ahead on the PFS.”

George Read, Senior vice-president corporate development, said: “Star Diamond is very pleased with the substantial increase in grade and carats in the indicated resource category of this revised mineral resources estimate, which has been rigorously prepared to diamond industry standards using meticulously reviewed datasets.

“Revised diamond grade estimates are assigned to the company’s established geological models for the Star and Orion South diamond deposits using robust parameters consistent with previous studies. Rio Tinto Exploration Canada’s (RTEC) successful development and execution of the trench cutter (TC) sampling program and diamond recovery in the modern Consulmet bulk sample plant, generated a diamond parcel that can be integrated with diamond parcels from previous underground bulk sampling and LDD programs. The TC diamond parcel has improved the overall diamond grade and size frequency distribution (SFD) used by Star Diamond to estimate the revised mineral resources of both Star and Orion South. The consequent reduction in the average diamond price due to the addition of smaller stones from enhanced recovery, is significantly offset by the larger grade increase. We are also pleased to have diamond expert Mr. Peter Ravenscroft supervise this mineral resources update after the completion of RTEC’s 10-hole TC program at the Star Kimberlite in 2019, as he not only brings over 40 years of diamond resource estimation expertise with some of the major diamond companies in the world, but also clearly aligns our Star-Orion South Diamond project mineral resources estimate with established diamond industry standards.

The diamond populations of the EJF and Cantuar kimberlite units at Star and the EJF kimberlite unit at Orion South have significantly coarse diamond SFD, from which we can anticipate the recovery of large, high-quality (Type IIa) diamonds in future production.”

Star Diamond, working in close consultation with Mr. Ravenscroft, has determined that only limited improvements in precision could be achieved by additional, prohibitively costly bulk sample programs and that the extensive work already completed will allow for robust diamond price estimates on both Star and Orion South, with associated confidence limits allowing for quantified risk analysis as part of the PFS.

Star Diamond will file a technical report in respect of the revised mineral resources estimate as soon as it is available. The revised mineral resources estimate will now be incorporated into a reoptimized open pit mine plan for the project, which will include a re-evaluation of mineral reserves and an economic assessment based thereon. It is anticipated this work will be completed during 2024 to 2025 and will result in a revised PFS, including a revised statement of mineral reserves for the project, if warranted, and an economic assessment based thereon. Accordingly, the mineral resources and economic assessment previously disclosed by Star Diamond for the project should no longer be relied upon.

The project is located in central Saskatchewan approximately 60 km east of Prince Albert. The project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.