Buffalo Hills Joint Venture High Diamond Prices and Elevated Proportions of Type Iia Diamonds
NEWS RELEASE F ebruary 21, 2023
TSX: DIAM Saskatoon, Saskatchewan
BUFFALO HILLS JOINT VENTURE
HIGH DIAMOND PRICES AND ELEVATED PROPORTIONS OF TYPE IIa DIAMONDS
SASKATOON, Saskatchewan, February 21, 2023 – Star Diamond Corporation (TSX: DIAM) (“Star Diamond”
or the company) is pleased to announce that the company has completed a n estimate of the diamond
valuation and the abundance of Type IIa diamonds from the from K6, K14, K91 & K252 kimberlite s of
Buffalo Hills Joint Venture in north-central Alberta. Star Diamond and Canterra Minerals Corp oration
(CTM: TSX.V) each hold a 50 percent interest in the Buffalo Hills project.
Highlights
• The diamond valuation exercise has shown that kimberlites K14 and K6 have elevated modelled
diamond prices, US$ 160 per carat and US$ 180 per carat, respectively. The K6 parcel includes
three fancy yellow stones, the K14 four fancy yellow and the K252 a fancy orange stone. The two
highest value stones, which are both from the K6, are 1.06 carats (US$ 532) and 1.07 carats (US$
506). These diamond parcels are too small (carats and stones) for rigorous diamond value
estimates.
• The diamond typing exercise has shown presence of Type IIa diamonds, in elevated proportions,
in all four of these Buffalo Hills kimberlites. The diamonds analysed represent a spectrum of
diamond sizes from +3 DTC (+0.026 carats) to 5 grainer (1.2 carats).
Ewan Mason, Interim CEO said: "We are encouraged that the high diamond price estimates for these
kimberlites are significantly above the world average rough price of US $116 (2021). This work has also
shown elevated proportions of Type IIa diamonds, in addition to the stunning colours in these sample
parcels. We will be discussing with our partner what further work may be warranted at site.”
Diamond Valuation
Diamond valuations and characterisations as shown in the table below were completed by Mr. Nelson
Karun, Diamond Specialist, Saskatchewan Research Council (“SRC”) Diamond Services, on behalf of Star
Diamond
Kimberlite Carats Stones % Gem
Quality
% White
Colour
Faint to no
Fluorescence
Average US$/Ct
Parcel
Model Price
(US$/ct)
K6 16.73 86 29.5 70.5 82.9 103.54 185*
K14 69.32 1,362 17.9 73.8 92.6 54.32 160
K91 4.17 103 17.9 54.6 89.7 53.61 N/A
K252 12.41 328 22.0 82.1 92.1 72.79 140*
*Very speculative due to the small sample size
As observed by Mr. Karun, diamonds from these kimberlite bodies exhibit good quality, colour and very
low to no fluorescence. All the parcels of diamonds appear to be statistically very similar in terms of their
graded characteristics. There is an inadequate sample size for K91 to model the average diamond price.
Extremely speculative model prices are given for samples K6 and K252 , due to the small parcel size. K14
is a larger parcel size, and a price can be modeled, but should still be used with caution.
Diamond Typing
These four kimberlites ha ve diamond parcels with sufficient diamonds to conduct preliminary diamond
typing studies. The number and the percentage of Type IIa diamonds for the Buffalo Hills kimberlites
studied are documented in the table below and shows that these kimberlites have an anomalously high
percentage of Type IIA diamonds.
Diamonds +3 DTC (0.026 carats) to 5 Grainer (1.2 carats)
Number of
Diamonds Typed
Number of Type IIa
Diamonds
Percentage Type IIa
Diamonds
K6 +3 (0.026 ct) & above 78 4 5.1
K14 +7 (0.12 ct) & above 126 3 2.4
K91 +3 (0.026 ct) & above 47 3 6.4
K252 +3 (0.026 ct) & above 153 7 4.6
Senior Technical Advisor to Star Diamond, George Read, states: “The presence of Type IIa diamonds in
the Buffalo Hills kimberlites increases the potential for the recovery of large (plus 100 carat), high -value
diamonds from a future mine. Many high-value, top colour, large specials (greater than 10.8 carats) found
in existing diamond deposits are Type IIa diamonds, including all ten of the largest known rough diamonds
recovered worldwide. The presence of Type IIa diamonds strengthens the future potential diamond
pricing of these Buffalo Hills kimberlites.”
Type IIa diamonds are very rare and generally account for less than 2 percent of all natural rough
diamonds mined world-wide from kimberlite deposits. Only a small number of active diamond mines
regularly produce Type IIa diamonds with the most important of these mines being Cullinan Diamond
Mine in South Africa, Letseng Diamond Mine in the Kingdom of Lesotho and, more recently , Karowe
Diamond Mine in Botswana.
Fourier Transform Infrared (“FTIR”) Spectrometry is used to determine the concentration and aggregation
state of nitrogen within the diamonds using industry standard methods. All analyses of nitrogen content
and aggregation state were carried out at the SR C high security diamond facility, with 24 -hour video
surveillance. The SRC’s Geoanalytical Laboratories is accredited to the ISO/IEC 17025 standard by the
Standards Council of Canada as a testing laboratory.
The Buffalo Hills Kimberlite District, which contains at least 38 individual kimberlite bodies , a number of
which outcrop at surface, is located within the East Peace District of north -central Alberta, Canada.
Exploration on these kimberlites started in 1996, from which small parcels of diamonds have been
collected from various exploration programs on many of those considered most prospective.
Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration, and
development of mineral properties. Shares of the Corporation trade on the TSX Exchange under the
trading symbol “DIAM”.
All technical information in this press release has been prepared under the supervision of George Read,
Senior Technical Advisor to Star Diamond, a registered Professio nal G eoscientist i n the Provi nces of
Saskatchewan a nd British Columbi a and Ma rk Shimell, Project Manager, a registered Prof essional
Geoscientist in the Province of Saskatchewan and Alberta, who are the Corporation’s “Qualified Persons”
under the definition of NI 43-101.
About Star Diamond Corporation
Star Diamond is a Canadian-based corporation engaged in the acquisition, exploration and development
of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading
symbol “DIAM”. Star Diamond’s most significant asset is its interest in the Fort à la Corne property in
central Saskatchewan. These kimb erlites are located in close proximity to established infrastructure,
including paved highways and the electrical power grid, which provide significant advantages for future
mine development.
For further information, please contact:
Phone: (306) 664-2202
Email: [email protected]
Website www.stardiamondcorp.com
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Caution Regarding Forward-looking Statements
This press release contains "forward -looking statements" and/or "forward -looking information" (collectively, "forward -looking
statements") within the meaning of applicable securities legislation. All statements, other than statements of historical fac t, are
forward-looking statements. Forward -looking statements in this press release include, but are not limited to, Star Diamond’s
assessment of its cost and management structure going forward.
These forward-looking statements are based on Star Diamond's current beliefs as well as assumptions made by and information
currently available to Star Diamond and involve inherent risks and uncertainties, both general and specific. Risks exist that
forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world
diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and other currencies relative to
the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of
Rio Tinto or Star Diamond, the impact of changes in the laws and regulations regulating mining exploration, development, closure,
judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in
Star Diamond's most recently filed Annual Information Form, annual and interim MDA.