STAR Diamond Announces Initial Results from Tenth Bulk Sample Trench of STAR – Orion South Diamond Project
NEWS RELEASE January 12, 2021
Stock Symbol: DIAM: TSX Saskatoon, Saskatchewan
STAR DIAMOND ANNOUNCES INITIAL RESULTS FROM TENTH
BULK SAMPLE TRENCH OF STAR – ORION SOUTH DIAMOND PROJECT
• 3,423 DIAMONDS WEIGHING 199.36 CARATS RECOVERED
• 14 DIAMONDS GREATER THAN 1 CARAT RECOVERED, INCLUDING
8.59, 6.52 (TYPE IIa), 5.09, 4.04 CARAT DIAMONDS
SASKATOON, Saskatchewan, January 12, 2021 – Star Diamond Corporation (“Star Diamond” or the
“Corporation”) today announced that a total of 3,423 diamonds weighing 199.36 carats have been recovered
to date from the ten th (19FALCT006) 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 four larger 8.59, 6.52 (Type IIa), 5.09, 4.04 carat diamonds from Rio Tinto
Canada’s tenth trench,” said Ken MacNeill, President and CEO of Star Diamond. “ The initial results from the
ten 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
recovery of larger diamonds from Rio Tinto Canada’s bulk sample program, including larger Type IIa diamonds,
also continues to strengthen our expectation for recovery of large, high value diamonds in a future producing
diamond mine.”
Senior Technical Advisor, George Read, states: “T he tenth trench (19FALCT006) has produced a total of 1 4
diamonds greater than 1 carat namely: 8.59, 6.52, 5.09, 4.04, 2.89, 2.10, 1.99, 1.65, 1.45, 1.44, 1.22, 1.21, 1.20
and 1.08 carats, respectively, and all were 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 breakdown of the
kimberlite intercepted and diamonds recovered to date from trench 19FALCT006 is detailed in the table below.”
Initial diamond stone and grade results for Trench 19FALCT006:
Kimberlite1
Type
Kimberlite
Intercept (metres)
Drilled2
Tonnes
Carats3
(+1 DTC)
Grade4
(cpht)
Stones
(+1 DTC)
Stones
per tonne
(+1 DTC)
Largest
Stone (ct)
LJF 111.35-120.90 95.57 1.71 1.79 61 0.64 0.28
MJF 120.90-160.30 405.66 25.51 6.29 721 1.78 0.82
EJF 160.30-241.48 889.28 172.14 19.36 2,641 2.97 8.59
Total 130.13 1,390.51 199.36 3,423
Notes
1. Kimberlite Types: LJF: Late Joli Fou Kimberlite; MJF: Mid 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 densities 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
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Star Diamond has now publicly reported initial results from all ten bulk sample trenches excavated by Rio Tinto
Canada in 2019. Until all required work is completed, including critically important comprehensive diamond
breakage studies, complete sample processing and the necessary audits of the work, the processing, diamond
recovery and reporting of all diamond results on the se ten bulk sample trenches is not complete. Once all
required work is complete, a summary of the diamond results from the ten trenches will be reported.
As previously disclosed by Star Diamond, Rio Tinto Canada has provided a binding undertaking (the
“Undertaking”), which was relied upon by the Court of Queen’s Bench for Saskatchewan (Judicial Centre of
Saskatoon) (the “Court”) in its August 10, 2020 decision involving the ongoing litigation between Star Diamond
and Rio Tinto Canada. Pursuant to the Undertaking, Rio Tinto Canada has agreed that it will not call and/or
conduct any meeting of the management committee under the joint venture agreement between Star Diamond
and Rio Tinto Canada for a period of 120 days following Rio Tinto Canada completing the processing, diamond
recovery and reporting of all diamond results on the samples previously taken from the ten b ulk sample
trenches excavated by Rio Tinto Canada in 2019 . Star Diamond will vigorously resist any attempt by Rio Tinto
Canada to resile from its obligations pursuant to the Undertaking.
Initial diamond results reported in this news release are based on diamond recovery processing conducted by
the Saskatchewan Research Council through Geoanalytical Laboratories Diamond Services located in Saskatoon
Saskatchewan (the “SRC”). Primary recovery processing consisted of X -ray transmission (XRT) sortin g, X-ray
luminescence (XRL) , magnetic separation and grease table recovery methods. The 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 estab lished infrastructure, including paved
highways and the electrical power grid, which provide 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 estimated 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 suggesti ng 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,
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 and other actions to
complete the processing, diamond recovery and reporting of all diamond results on the samples previously taken from the ten bulk
sample trenches excavated by Rio Tinto Canada in 2019 ; statements related to Star Diamond’s intention to enforce the Undertaking;
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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; 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 t he potential f or 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 and any future legal proceedings to enforce the Undertaking , 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, annual 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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