STAR Diamond Announces Initial Results from Seventh Bulk Sample Trench of STAR – Orion South Diamond Project
NEWS RELEASE December 1, 2020
Stock Symbol: DIAM: TSX Saskatoon, Saskatchewan
STAR DIAMOND ANNOUNCES INITIAL RESULTS FROM SEVENTH
BULK SAMPLE TRENCH OF STAR – ORION SOUTH DIAMOND PROJECT
• 2,755 DIAMONDS WEIGHING 178.98 CARATS RECOVERED
• 15 DIAMONDS GREATER THAN 1 CARAT RECOVERED, INCLUDING
16.96 and 6.35 CARAT “D” COLOUR TYPE IIa DIAMONDS AND
8.05, 3.72, 3.53 and 3.29 CARAT TYPE I DIAMONDS
SASKATOON, Saskatchewan, December 1 , 2020 – Star Diamond Corporation (“Star Diamond” or the
“Corporation”) today announced that a total of 2,755 diamonds weighing 178.98 carats have been recovered
to date from the seventh (19FALCT005) bulk sample trench excavated on the Star Kimberlite by Rio Tinto
Exploration Canada Inc. (“Rio Tinto Canada”) in 2019.
“We are pleased by the recovery of two larger 16.96 and 6.35 carat D colour Type IIa diamonds from Rio Tinto
Canada’s seventh trench ,” said Ken MacNeill, President and CEO of Star Diamond. “ Star Diamond’s own
underground bulk sampling and large diameter drilling programs conducted between 2004 and 2009 previously
recovered diamonds as large as 49.5 and 45.9 carats from the Star and Orion South Kimberlites, respectively.
We have been disappointed by Rio Tinto Canada’s failure to date to recover larger diamonds, which we believe
is a consequence of its unproven and inadequately tested extraction and/or diamond recovery methodologies
causing undue diamond breakage. Nevertheless, the diamonds recovered from the seventh trench continue to
highlight the excellent potential for the recovery of large high value diamonds from the Star Kimberlite.”
Mr. MacNeill continued, “We are also pleased that t he initial results from the first seven reported trenches
continue to validate the grades outlined in our Preliminary Economic Analysis that was based upon Star
Diamond’s own prior underground bulk sampling and large diameter drilling programs.”
The breakdown of the kimberlite intercepted and diamonds recovered to date from trench 19FALCT005 is
detailed in the table below.
Senior Technical Advisor, George Read, states: “T he seventh trench (19FALCT005) has produced a total of 1 5
diamonds ranging from 1. 10 carats to 16 .96 carats. The six largest diamonds recovered to date from
19FALCT005 are 16.96, 8.05, 6.35, 3.72, 3.53 and 3.29 carats, respectively, and were all recovered from Early
Joli Fou (“EJF”) kimberlite. The EJF is the dominant kimberlite unit within the Project in terms of ore volume and
diamond grade. The 16.96 and 6.35 carat diamonds have been confirmed as being Type IIa using Fourier
transform infrared spectrometry and their colour has also been confirmed as D. The recovery of these high
colour, Type IIa diamonds in this bulk sample strengthens the expectation for recovery of large, high value
diamonds in a future producing diamond mine. It is important to also note that the three large diamonds
included in these trench results were all recovered from a soft EJF kimberlite breccia unit, from which kimberlite
would have been more easily extracted with minimal mechanical attrition.”
Star Diamond has now publicly reported initial results from seven of the ten bulk sample trench es excavated
by Rio Tinto Canada. Until critically important and comprehensive diamond breakage studies are completed,
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the processing, diamond recovery and reporting of all diamond results on the bulk sample trenches excavated
by Rio Tinto Canada will not be complete.
Initial diamond stone and grade results for Trench 19FALCT005:
Kimberlite1
Type
Kimberlite
Intercept (metres)
Drilled2
Tonnes
Carats3
(+1 DTC)
Grade4
(cpht)
Stones
(+1 DTC)
Stones
per tonne
(+1 DTC)
Largest
Stone (ct)
LJF 112.00-148.70 321.79 2.443 0.759 124 0.39 0.051
EJF 148.70-230.30 882.05 176.536 20.01 2,631 2.98 16.961
Total 118.30 1,203.84 178.979 2,755
Notes
1. Kimberlite Types: LJF: Late Joli Fou Kimberlite; EJF: Early Joli Fou Kimberlite. The LJF was not included in the Star
Diamond PEA mineral resource estimate
2. The excavated tonnes are calculated using theoretical trench volumes and core pilot hole dry densit ies provided
by Rio Tinto Canada. These are equivalent to dry tonnes
3. Commercial diamonds are defined as diamonds that will not pass through a +1 DTC screen, which has round
apertures of 1.09 millimetres
4. cpht: diamond grade in carats per hundred tonnes
Diamond results reported in this news release are based on diamond recovery processing conducted by SRC’s
Geoanalytical Laboratories Diamond Services located in Saskatoon Saskatchewan. Primary recovery processing
consisted of X-ray transmission (XRT) sorting, , magnetic separation and grease table recovery methods. SRC is
an independent mineral processing facility which is accredited to the ISO/IEC 17025:2017 standard by the
Standards Council of Canada as a testing laboratory for specific tests.
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 Toronto Stock Exchange under the
trading symbol “DIAM”. The Corporation’s Fort à la Corne kimberlites (including the Star - Orion South Diamond
Project) are located in central Saskatchewan in close proximity to established infrastructure, including paved
highways and the electrical power grid, which prov ide significant advantages for future mine development.
During 2018, the Corporation announced the positive results of an independent Preliminary Economic
Analysis (the “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).
All technical information in this press release has been prepared under the supervision of George Read, Senior
Technical Advisor, a registered Professional Geoscientist in the Provinces of Saskatchewan and 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 suggesting 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. By their nature, statements referring to mineral reserves,
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mineral resources or the Corporation’s PEA constitute forward-looking statements. Forward-looking statements contained or implied in
this press release include, but are not limited to, statements regarding the processing and analysis of, and reporting of results from, the
bulk samples previously collected by Rio Tinto Canada and all timelines; statements related to diamond breakage; disclosure regarding
the economics and project parameters presente d 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; statements related to
mineral resources and/or reserves; statements related to the approval of the development of the Star - Orion South Diamond Project;
statements relating to future development of the Star - Orion South Diamond Project and associated timelines; statements with respect
to environmental permitting and approvals ; the Corporation’s need for and intention to seek additional financing; statements with
respect to metallurgical investigations, assessments and test work including Diamond breakage studies; and the potential proportion of
Type IIa diamonds in the Star and Orion South kimberlites and the potential for the recovery of large high quality diamonds.
These forward-looking statements are based on the Corporation’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 i ncluding, but not limited to, developments in world diamond markets,
changes in diamond valuations, 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 Canada or the
Corporation, the effects of competition in the markets in which the Corporation operates, risks related to the l egal proceedings
commenced by the Corporation against Rio Tinto Canada, the impact of the COVID -19 pandemic, risks related to the operation of the
on-site Bulk Sample Plant and the processing methods being used by Rio Tinto Canada and the effectiveness thereof, risks related to
diamond breakage and cost overruns and other consequences arising from Rio Tinto Canada’s extraction and diamond recovery
methodologies, risks related to the Corporation’s need for additional financing and the Corporation’s ability to raise that financing, the
impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal
proceedings, operational and infrastructure risks and the additional risks described in the Corporation’s m ost recently filed Annual
Information Form, an nual and interim MD&A, news releases and technical reports. 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 the Corporation 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 carefully 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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