FORT À LA CORNE KIMBERLITES BROWNFIELDS EXPLORATION PROGRAM UNDERWAY George H. Read, P. Geo., Senior Vice President Exploration and Development of Star Diamon d Corporation (“Star Diamond” or the “Corporation”) is pleased to announce that Rio Tinto Exploration Canada (”RTEC”)
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NEWS RELEASE October 25, 2018
TSX: DIAM Saskatoon, Saskatchewan
FORT À LA CORNE KIMBERLITES
BROWNFIELDS EXPLORATION PROGRAM UNDERWAY
George H. Read, P. Geo., Senior Vice President Exploration and Development of Star Diamon d Corporation
(“Star Diamond” or the “Corporation”) is pleased to announce that Rio Tinto Exploration Canada (”RTEC”)
have commenced a Brownfields exploration program to investigate and prioritise the Fort à la Corne
kimberlites outside of the Star and Orion South kimberlites. While the Star and Orion South kimberlites are
the focus of present and future bulk sampling by RTEC, respectively, there are some 60 other kimberlite s
within in the Fort à la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions held
100 percent by Star Diamond . In the past Star Diamond and other companies completed extensive
exploration on these Fort à la Corne kimberlites, including geophysical surveys, pa ttern core drilling, large
diameter drilling and mic ro- and macrodiamond analyses, which resulted in the documentation of
geological models for a number of these bodies. The aim of RTEC’s Brownfields program is to reinvestigate
these other kimberlites to assess and prioritise them for future exploration and evaluation work. Programs
currently underway include detailed core logging, indicator mineral abundance and composition studies ,
and studies of diamond results, in addition to an extensive airborne geophysical survey of the Fort à la
Corne diamond district.
The geophysical survey currently being flown over the Fort à la Corne diamond district is an airborne gravity
gradiometry ( “AGG”) survey, conducted by Mississauga based geophysical contractor CGG. CGG are
currently conducting the survey and have deploy ed their Falcon AGG system in a DC -3 aircraft. RTEC have
indicated that t wo blocks are being flown: 1) the Main Block, with flight lines oriented in an east -west
direction and spaced at 200 m etres with perpendicular north -south tie lines being flown 2 ,000 metres
apart; and 2) the West Block, flight line separation and tie line separation also 200 m etres and 2 ,000
metres, respectively. The flight lines of the west block are oriented NE -SW. Nominal flying height for the
survey is 100 m etres, mean terrain clearance. It is anticipated that the survey will include 5,350 line
kilometres of survey flying. Magnetic field data and LiDAR (Light Detection and Ranging or Laser Altimeter
Survey) data are being collected concurrent with the AGG data , producing a complete set of gravity field,
magnetic field and topographic data over the surveyed area. These data will be processed at CGG’s
processing hub in Perth, Australia.
Senior Vice President Exploration and Development, George Read, states: “ While RTEC’s work under th e
Option Agreement between Star Diamond and RTEC involves the bulk sampling of the Star and Orion South
kimberlites, this additional Brownfields exploration program by RTEC aims to investigate and prioritise the
Corporation’s other kimberlite bodies in the Fort à la Corne diamond district . RTEC is using current
exploration methods, in addition to in-house exploration methods to reinvestigate the other Fort à la Corne
kimberlites to assess and prioritise them for future exploration and evaluation work.”
About Star Diamond Corporation
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
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symbol “DIAM”. The Corporation’s Star - Orion South Diamond Project is located in central Saskatchewan
some 60 kilometres east of the city 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. The Project recently received provincial approval by the Saskatchewan
Ministry of Environment (see News Release dated October 25, 2018), along with a previous positive Federal
environmental decision.
The Corporation recently announced the positive results of the independent Preliminary Economic
Assessment (“PEA”) on the Project. The PEA estimates that 66 million carats of diamonds could be
recovered in a surface mine over a 38-year Project life, with a Net Present Value (“NPV”) (7%) of $2.0
billion after tax, an Internal Rate of Return (“IRR”) of 19% and an after-tax payback period of 3.4 years
after the commencement of diamond production (see News Release dated April 16, 2018). Star Diamond
commissioned the PEA and related Technical Report for the Star and Orion South Kimberlites and, as such,
the PEA and Technical Report are the sole responsibility of the Corporation. The PEA is based on
exploration and evaluation work conducted up to and including March 2017.
During 2017, the Corporation granted RTEC an option to earn up to a 60% interest in the Corporation’s Fort
à la Corne mineral properties (including the Star - Orion South Diamond Project) on the terms and
conditions contained in the Option Agreement (see News Release dated June 23, 2017). RTEC refers to Star
Diamond’s mineral dispositions in the Fort à la Corne diamond district as Project FalCon.
All technical information in this p ress release has b een p repared un der the su pervision of George Read,
Senior Vice-President of Exploration and Development, a registered P rofessional Geoscientist in the
Provinces of Saskatchewan a nd British Columbia and Mark Shimell, Project Manager, a registered
Professional Geoscientist in the Province of Saskatchewan, who are the Corporation’s “Qualified Persons”
under the definition of NI 43-101.
Caution Regarding Forward-Looking Statements
This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions
of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward -looking
information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect" , "plan", "intend",
"forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggest ing future
outcomes or language suggesting an outlook. In particular, statements regarding the Corporation's future operations, future
exploration and development activities or other development plans constitute forward- looking statements. B y their nature,
statements referring to mineral reserves, mineral resources, PEA or TFFE constitute forward-looking statements.
Forward-looking statements contained or implied in this press release include, but are not limited to , disclosure regarding the
economics and project parameters presented in the PEA, including, without limitation, IRR, NPV and other costs and economic
information, carats of diamonds to be recovered, after-tax payback period, tonnes of kimberlite to be mined, carats per tonne to be
recovered (grade), diamond prices, project life, life of mine, capital costs, and length of pre- production period, as well as
statements with respect to environmental permitting and approvals and RTEC’s and the Corporation’s objectives for the ensuing
year, including the proposed bulk sampling and Brownfields programs.
These forward-looking statements are based on the Corpora tion's current beliefs as well as assumptions made by and information
currently available to it 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 fa ctors including, but not limited to,
developments in world diamond markets, changes in diamond prices, risks relating to fluctuations in the Canadian dollar and o ther
currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing
budget priorities of the Corporation or its partners, the effects of competition in the markets in which the Corporation operates,
the impact of changes in the laws and regulations regulating mining exploration, dev elopment, closure, judicial or regulatory
judgments and legal proceedings, operational and infrastructure risks and the additional risks described in the Corporation's most
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recently filed Annual Information Form, annual and interim MD&A. The Corporation's anticipation of and success in managing the
foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward- looking statements to be reasonable based on information
currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to the Corporation ,
investors and others should not place undue reliance on these statements and should careful ly consider the foregoing factors and
other uncertainties and potential events. Unless required by applicable securities law, the Corporation does not undertake to
update any forward-looking statement that is made herein.
For further information: [email protected] or (306) 664-2202
www.stardiamondcorp.com
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