STAR DIAMOND CORPORATION ANNOUNCES FIRST QUARTER 2023 RESULTS S tar Diamond Corporation (“Star Diamond” or the “Company”) reports that the unaudited financial
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EWS RELEASE May 11, 2023
TSX: DIAM Saskatoon, Saskatchewan
STAR DIAMOND CORPORATION ANNOUNCES FIRST QUARTER 2023 RESULTS
S
tar Diamond Corporation (“Star Diamond” or the “Company”) reports that the unaudited financial
results for the quarter ended March 31, 2023, will be filed today on SEDAR and may be viewed at
www.sedar.com once posted.
O
verview
Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing
Saskatchewan's diamond resources. Star Diamond holds, through a joint venture arrangement with Rio
Tinto Exploration Canada Inc. (“Rio Tinto Canada”), a wholly -owned subsidiary of Rio Tinto plc, a 25%
interest in certain mineral properties (which includes the Star – Orion South Diamond Project, or the
“Project”) within the Fort à la Corne diamond district of central Saskatchewan, Canada. These properties
are in close proximity to established infrastructure, including paved highways and the electrical power
grid, which provide significant advantages for future mine development.
T
he Company also holds a 50% interest in the exploration and evaluation properties and assets of the
Buffalo Hills -JV located in north -central Alberta, Canada. Canterra Minerals Corporation (“Canterra”)
holds the remaining 50% interest. Canterra is the operator of the Buffalo Hills-JV.
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ort à la Corne mineral properties
On June 28, 2022, Rio Tinto Canada exercised its voting power at a meeting of the Fort à la Corne joint
venture management committee to place the Project on care and maintenance through D ecember 31,
2022. Rio Tinto Canada also advised that, subject to fulfilling its existing obligations, it did not intend to
commit additional capital to the Fort à la Corne properties during 2022 beyond what was necessary for
care and maintenance. Rio Tinto Canada also advised Star Diamond that it intend ed to conduct a near -
term review of its alternatives regarding the Fort à la Corne properties, which included its potential exit.
On October 21, 2022, Star Diamond announced that Rio Tinto Canada had stated that it intended to fully
de-mobilize the leased on-site camp. During the quarter, the site was fully de -mobilized and the Project
was placed on care and maintenance.
R
ecent activities relating to the Star - Orion South Diamond Project and Fort à la Corne mineral
properties
During the quarter ended March 31, 2023, the Company continued negotiations with Rio Tinto Canada to
assess alternatives regarding the Project.
Recent activities relating to the Buffalo Hills mineral properties
In February 2023, the Company announced the completion of the diamond valuation from the K6, K14,
K91 and K252 kimberlites of the Buffalo Hills-JV.
Diamond valuations and characterizations as show n in the table below were completed by Mr. Nelson
Karun, Diamond Specialist, Saskatchewan Research Council 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.
Th
e 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).
T
hese four kimberlites have 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 show thes e 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
Th
e 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).
T
ype 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 Afric a, Letseng Diamond Mine in the Kingdom of Lesotho and, more recently, Karowe
Diamond Mine in Botswana.
Y
ear to Date Results
For the quarter ended March 31, 2023, the Company recorded a net loss of $ 0.3 million, or $0.00 per
share (basic and fully diluted) , compared to a net loss of $ 0.9 million, or $0.00 per share , for the
comparative period in 2022. The decrease in net loss was due primarily to reduced expenditures, period
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over period, combined with a $0.3 million non-cash gain on the fair value measurement of the Company’s
marketable securities.
A
t March 31, 2023 the Company had $ 1.5 million (December 31, 2022 – $ 2.6 million) in cash and cash
equivalents and working capital of $ 1.3 million ( December 31, 2022 - $2 .0 million). The decrease in
working capital was a result of general and administrative and exploration and evaluation expenditures
incurred during the quarter. The Company believes it has sufficient liquidity to fund general and
administrative costs and certain exploration expenditures through to the end of 2023.
S
elected financial highlights include:
Condensed Consolidated Statements of Financial Position
As at
March 31,
2023
As at
December 31,
2022
Current assets $ 1.8 M $ 2.7 M
Investments and other assets 0.6 M 0.4 M
Current liabilities 0.4 M 0.7 M
Shareholders’ equity 2.0 M 2.4 M
Condensed Consolidated Statements of Loss
Quarter Ended
March 31,
2023
Quarter Ended
March 31,
2022
Interest and other income $ - M $ - M
Expenses 0.6 M 0.7 M
Loss before undernoted items 0.6 M 0.7 M
Investment in Wescan Goldfields Inc. (0.3) M 0.2 M
Net loss for the period 0.3 M 0.9 M
Net loss per share for the period (basic and diluted) 0.00 0.00
Condensed Consolidated Statements of Cash Flows
Quarter Ended
March 31,
2023
Quarter Ended
March 31,
2022
Cash flows (used in) from operating activities $ (1.1) M $ 1.1 M
Cash flows from investing activities - M - M
Cash flows from financing activities - M 0.5 M
Net increase (decrease) in cash (1.1) M 1.6 M
Cash – beginning of period 2.6 M 1.3 M
Cash – end of period 1.5 M 2.9 M
Outlook
Fort à la Corne mineral properties
Star Diamond continues to work with Rio Tinto Canada in assessing alternatives regarding the Project.
These discussions remain ongoing and there is no certainty that any agreement will be reached between
Star Diamond and Rio Tinto Canada regarding any such potential arrangements. Management believes
that the negotiated return of the Project on reasonable terms is critical to its long-term success.
Buffalo Hills mineral properties
Management continues to review the recent results from the diamond valuation and typing analysis.
Discussions are ongoing with Canterra to determine possible future work programs and a potential
strategic path forward for the property. A more detailed update on activities at the Buffalo Hills-JV will be
provided as it becomes available.
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About Star Diamond Corporation
Star Diamond Corporation 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 holds, through a joint venture arrangement with Rio Tinto
Canada, a 25% interest in certain Fort à la Corne kimberlites (including the Star – Orion South Diamond
Project). These properties are located in central Saskatchewan, in close proximity to established
infrastructure, including paved highways and the electrical power grid, which provide significant
advantages for future mine development. The Company also holds a 50% interest in the exploration and
evaluation properties and assets of the Buffalo Hills-JV located in north-central Alberta, Canada. Canterra
Minerals Corporation (“Canterra”) holds the remaining 50% interest. Canterra is the operator of the
Buffalo Hills-JV.
T
echnical Information
All technical information in this press release has been prepared under the supervision of George Read,
Senior Technical Advisor, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia
and Mark Shimell, Project Manager, Professional Geoscientist in the Province of Saskatchewan and
Alberta, who are the Company’s “Qualified Persons” under the definition of NI 43-101.
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or further information, please contact:
Phone: (306) 664-2202
Email: [email protected]
Website www.stardiamondcorp.com
S
tay Connected with Us:
Twitter: https://twitter.com/StarDiamondCorp
LinkedIn: https://www.linkedin.com/company/star-diamond-corp
Facebook: https://www.facebook.com/people/Star-Diamond-Corp/100058096376664/
Instagram: https://www.instagram.com/stardiamondcorp/
Cau
tion 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, 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 uncertaint ies, 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, statements regarding
Rio Tinto Canada’s future plans and intentions including with respect to the Fort à la Corne mineral properties; the Company's
management structure, 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, the impact of changes in the laws and regulations regulating mining
exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure ris ks
and the additional risks described in Star Diamond's most recently filed Annual Information Form, and annual and interim MDA.
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