STORNOWAY
FILES NI 43-101 TECHNICAL REPORT ON THE RECENTLY REVISED RESOURCE ESTIMATE
FOR RENARD DIAMOND DEPOSIT
Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the February
07, 2011 SEDAR filing of a National Instrument ("NI") 43-101
technical report in support of the recently updated mineral resource estimate
at the Renard Diamond Project in North Central
Qu�bec. The Renard Diamond Project, which includes
the Renard kimberlite
pipes and the Lynx-Hibou system of kimberlite dykes, is a 50:50 joint venture with DIAQUEM
INC. ("DIAQUEM"), a wholly-owned subsidiary of SOQUEM INC.
("SOQUEM"), itself a wholly-owned subsidiary of Soci�t�
g�n�rale de financement
du Qu�bec ("SGF"), the Qu�bec government's main industrial and
financial holding company.
On
December 14, 2010, Stornoway announced an agreement
to acquire DIAQUEM'S 50% interest in the Renard
Diamond Project in a transaction that would make DIAQUEM a significant
shareholder of Stornoway. Upon the closure of the
acquisition, which is subject to the approval of Stornoway's
existing shareholders at an extraordinary meeting to be held in Toronto on
February 10th, 2011, Stornoway will have acquired
100% ownership of the project.
The
newly published NI 43-101 report is based on a revised resource originally
announced on January 24, 2011 and outlines a total Indicated Mineral Resource
of 23.8 million
carats, and a total Inferred Mineral Resource of 17.5 million carats,
increases of 3% and 31% respectively
over the previous estimate. Included in the revised mineral resource
estimate is 12.9
million tonnes of near-surface kimberlite at Renard 65
containing 3.7
million carats now classified as an Inferred Mineral Resource.Additional resource upside has been identified
in the form of a potential mineral deposit of between 23.5 to 48.5 million carats,
an approximate two-fold increase over
the previous estimate.
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 potential mineral deposit is conceptual in nature, and it is
uncertain if further exploration will result in the target being delineated
as a mineral resource.
Qualified
Persons
Mr.
David Farrow, P.Geo. (BC) of GeoStrat
Consulting Inc. is the independent Qualified Person responsible for the
preparation of the mineral resource estimate for the Renard
Diamond 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. All of these Qualified Persons have reviewed
and approved the contents of this release.
About
Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading
diamond exploration and development companies, involved in the discovery of
over 200 kimberlites in seven Canadian diamond
districts. The Company benefits from a diversified diamond property
portfolio, a strong financial platform and management and technical teams
with experience in each segment of the diamond "pipeline" from exploration
to marketing.
About
SGF
Soci�t� g�n�rale de financement du Qu�bec (sgfqc.com), an industrial and
financial holding company, has a mission to carry out economic development
projects, particularly in the industrial sector, in cooperation with partners
and in compliance with accepted profitability requirements and with the
economic development policy of the Qu�bec government. As part of its new
mandate, SGF is authorized by the Qu�bec government to go beyond its
traditional role as an equity investor by offering complementary solutions,
such as loans, debentures or preferred shares.
SOQUEM,
a wholly-owned subsidiary of Soci�t� g�n�rale de financement du
Qu�bec, is to undertake exploration, development and mining activities
throughout the province of Qu�bec.
About
GeoStrat Consulting Inc.
GeoStrat Consulting Services Inc. a focused mineral resource
consultancy, was established to leverage 50 years' experience of its
founders, David Farrow and Darrell Farrow, in exploration, geological modelling, resource evaluation, production, resource
reconciliation and accounting of diamond deposits around the globe. GeoStrat focuses on client interaction and involvement in
developing resource models.
On
behalf of the Board
STORNOWAY DIAMOND
CORPORATION
/s/ "Matt Manson"
Matt Manson
President and Chief Executive Officer
For more information, please contact Matt Manson (President and CEO) at
416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754, toll free at
1-877-331-2232
For more information, please contact
Mr. Ghislain Poirier, VicePresident,
Public Affairs,Stornoway at 418-780-3938, gpoirier@stornowaydiamonds.com or
Sophie Alarie, Director,Marketing and
Public Relations, SGF at 514-876-9368, salarie@sgfqc.comor Pierre Bertrand, General Manager, SOQUEM at 819-874-3773 ; pierre.bertrand@soquem.qc.ca
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **
This
document contains "forward-looking information" within the meaning
of Canadian securities legislation and "forward-looking statements"
within the meaning of the United States Private Securities Litigation Reform
Act of 1995. This information and these statements, referred to herein
as "forward-looking statements" are made as of the date of this
document and the Company does not intend, and does not assume any obligation,
to update these forward-looking statements, except as required by law.
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 potential mineral deposits; (ii) the amount of future production over any
period; (iii) net present value and internal rates of return of the proposed
mining operation; (iv) capital costs and operating costs; (v) mine expansion
potential and expected mine life; and (vi) expected time frames for
completion of permitting and regulatory approvals, completion of a
Feasibility Study and making a production decision. 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" 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
All
forward-looking statements are based on Stornoway's
or its consultants' current beliefs as well as various assumptions made by
and information currently available to them. Many of these assumptions
are set forth in the news release and include: (i) estimates of contained
carats; (ii) the amount and classification of indicated and inferred mineral
resources and potential mineral deposits; (iii) estimated completion date for
the Feasibility Study; and (iv) the completion of the acquisition of
DIAQUEM's 50% interest in Renard (including
shareholder approval)and the timing thereof.
Although management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Many forward-looking statements are made assuming the correctness of other
forward looking statement.
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 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, risks relating to variations in the grade, kimberlite
lithologies and country rock content within the
material identified as mineral resources from that predicted, variations in
rates of recovery and breakage; the greater uncertainty of potential mineral
deposits, developments in world diamond markets, slower increases in diamond
valuations than assumed, risks relating to fluctuations in the Canadian
dollar and other currencies relative to the US dollar, increases in the costs
of proposed capital and operating expenditures, increases in financing costs or
adverse changes to the terms of available financing, if any, tax rates or
royalties being greater than assumed, results of exploration in areas of
potential expansion of resources, changes in development or mining plans due
to changes in other factors or exploration results of Stornoway
or its joint venture partners, changes in project parameters as plans
continue to be refined, risks relating to receipt of regulatory approvals or
settlement of an Impact and Benefits Agreement, the effects of competition in
the markets in which Stornoway operates,
operational and infrastructure risks and the additional risks described in Stornoway's most recently filed Annual Information Form,
annual and interim MD&As, 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. When relying on our
forward-looking statements to make decisions with respect to Stornoway, investors and others should carefully consider
the foregoing factors and other uncertainties and potential events. Stornoway does not undertake to update any
forward-looking statement, whether written or oral, that may be made from
time to time by Stornoway or on our behalf, except
as required by law.
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