STAR – Orion South Diamond Project Technical Update and Future Outlook
NEWS RELEASE December 04, 2023
TSX: DIAM Saskatoon, Saskatchewan
STAR – ORION SOUTH DIAMOND PROJECT
TECHNICAL UPDATE AND FUTURE OUTLOOK
SASKATOON, Saskatchewan, December 04, 2023 – Star Diamond Corporation ( TSX: DIAM ) (“Star
Diamond” or the “Company”) is pleased to announce that, subsequent to the recently announced
transaction with Rio Tinto Exploration Canada Inc. ("RTEC") whereby Star Diamond has agreed to acquire
all of RTEC's interest in the Fort à la Corne Joint Venture, Star Diamond’s technical team is once again now
focussed on the technical investigation and evaluation of the Star – Orion South Diamond Project, with
the aim of a future development decision. The initial work aims to prepare a revised Mineral Resource
estimate for the Star – Orion South Diamond Project, which will form the foundation of an updated Pre-
Feasibility (“PFS”) study. The PFS study will enable a Feasibility Study, on which a production decision can
be based.
Highlights
• The revised Mineral Resource estimate for the Star and Orion South kimberlites will integrate
Star trench cutter diamond data, adding improvement to the diamond size frequency curves for
both kimberlites.
• The mitigation of risk in the Orion South diamond price estimate: the 2018 Preliminary Economic
Assessment (“PEA”) demonstrated that it is economically efficient to mine the Orion South
kimberlite first. However, Orion South has a significantly smaller evaluation diamond parcel than
Star, adding some risk to the diamond price estimate for Orion South. We believe there is
opportunity to mitigate the risk in the Orion South diamond price estimate, without the necessity
of additional bulk sampling to obtain a larger diamond evaluation parcel.
• The scoping of an updated PFS is scheduled to commence early in Q1 2024.
• These developments will likely give rise to the ability to complete the updated PFS within a two-
year time frame and the Feasibility Study shortly thereafter. We anticipate these major studies
will be completed at a substantially lower expenditure level than was previously contemplated.
Revised Mineral Resource Estimate
The aim of the revised mineral resource estimate is to integrate all of the drilling and diamond results
recently generated by the Fort à la Corne Joint Venture , with archival data used to build the geological
model, which forms the basis of the mineral resource estimate. I mportantly, the diamond parcels
recovered from the ten T rench Cutter (“TC”) holes drilled on the Star kimberlite were recovered in an
efficient, modern Bulk Sampling Plant (“BSP”) that ensures excellent diamond liberation and recovery.
The BSP includes High Pressure Grinding Rolls that ensure liberation of the small diamonds (1-6 millimetre)
locked in kimberlite, that are subsequently recovered by an efficient Dense Media Separator that operates
in the same narrow 1 to 6 millimetre size range. The small diamonds (+1, +3 and +5 DTC) from the Early
Joli Fou (“EJF”) kimberlite unit of both Star and Orion South include significant proportions of D coloured
octahedral diamonds, which have significant value (US$30 -US$50 per carat), which is unusually high for
these small diamonds. The integration of the TC diamond data in the evaluation parcel aims to strengthen
the diamond grade and price used in the Mineral Resource estimate. The aim of this work is to prepare a
rigorously constrained Mineral Resource estimate by the end of Q2 2024. This revised Mineral Resource
estimate will provide an improved foundation for the revised PFS.
Orion South Diamond Price
Orion South has s hallower overburden (Orion South 100 metres, Star 140 metres) and higher diamond
grade (Orion South 17 cpht, Star 10 cpht) kimberlite in direct contact with overburden , both of which
ensure more rapid access to cash flow after overburden removal in a future mine. Consequently, the PEA
demonstrated that it is economically efficient to mine Orion South first. However, there is a significant
difference in the size of the evaluation diamond parcels recovered from the EJF, the principal economic
unit in both Sta r and Orion South. The Orion South evaluation parcel includes only 1,399 carats, as
opposed to the Star EJF parcel of 7,122 carats. In order to commence mining on Orion South, the risk
associated with the estimation of diamond price on a smaller evaluation parcel needs to be mitigated.
We believe that the close similarities of the kimberlite geology and diamond parcel characteristics for Star
and Orion South can enable better estimation of the Orion South diamond price. We have developed a
plan to conduct an in-depth investigation of the extent of similarities between the Star and Orion South
EJF diamond populations, with the aim of mitigating the risk in the estimation of the diamond price for
the Orion South EJF diamond parcel. The goal of this investigation is to accurately estimate the Orion
South diamond price without the requirement of additional bulk sampling, which is both expensive and
time consuming. The confidence generated in the Orion South diamond price will add to the precision of
the mineral resource estimate.
Updated PFS
The scoping of an updated PFS is scheduled to commence early in 2024 with the initial work focussed on
updating the hydrogeology and geotechnical models, in addition to the management of fines in plant
process water. Changes in environmental legislation , since the PEA , require that deep groundwater
pumped from the Mannville sediment s to stabilize the open pits of a future mine will require a revised
method of disposal. Geotechnical work will focus on the engineering of pit slopes, particularly in parts of
the overburden, to ensure steeper pit slopes and , consequently, a significant reduction in overburden
removal. The processing of some Orion South kimberlite results in plant process water from which the
fines do not settle quickly or easily. Investigations will be made into the mechanical separation of the fines
and the future of a fines management area, as this will minimize the use of “tailings ponds”. Significant
parts of the work completed for the 2018 PEA, including the mining method, process plant design, site
layout and infrastructure, can be updated and incorporated into the updated PFS.
Senior VP Corporate Development Star Diamond, George Read, states: “ The revised mineral resource
estimate will potentially provide an improved foundation on which a well constrained updated PFS can be
built. It is estimated that some $3 million in flow-through funding is required for 2024 to cover the revised
resource estimate, the technical team expenses, scoping of the PFS, overall site management and
environmental compliance. A n additional financing of at least $3 to $ 5 million is required to cover the
costs of the updated engineering work required by the PFS in the latter part of 2024 and early 2025.”
RTEC Transaction
Star Diamond and RTEC have entered into an agreement dated November 28, 2023 (the “Agreement”)
which provides, subject to the terms and conditions set forth therein, for Star Diamond’s acquisition of
RTEC’s interest in the Fort à la Corne Joint Venture. Completion of the transactions contemplated by the
Agreement is subject to various closing conditions including receipt of all required Governmental
approvals and the approval of the Toronto Stock Exchange for the issuance of additional common shares
of Star Diamond to RTEC.
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 t he Fort à la Corne property in
central Saskatchewan. These kimberlites 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 fact, ar e forward -looking statements. The use of any of the words “anticipate”, “plan”,
“aim”, “target”, “contemplate”, “continue”, “estimate”, “expect”, “intend”, “propose”, “might”, “may”, “will”,
“shall”, “project”, “should”, “could”, “would”, “believe”, “predict”, “forecast”, “pursue”, “potential”, “possible”,
“capable” and similar expressions are intended to identify "forward -looking statements. Forward -looking
statements in this press release include, but are not limited to, expectations regarding the complet ion of the
transactions that are the subject of the Agreement and the Project's potential to be a significant contributor to both
the local communities and the broader Saskatchewan economy.
These forward-looking statements are based on Star Diamond'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 factors including, but not limited to,
the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or
regulatory judgments and legal proceedings and the additional risks described in Star Diamond's most recently filed
Annual Information Form, annual and interim MD&A.
Although management of Star Diamond considers the assumptions contained in forward- looking statements to be
reasonable based on information currently available to Star Diamond, those assumptions may prove to be incorrect.
When making decisions with respect to Star Diamond, investors and others should not place undue reliance on these
statements and should carefully consider the foregoing factors and other uncertainties and potential events.
Star Diamond does not undertake any obligation to release publicly revisions to any forward -looking statement to
reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws. Investors should not assume that any lack of update to
a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on
forward-looking statements is at investors’ own risk.
For further information: [email protected] or (306) 664-2202
www.stardiamondcorp.com
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