STAR – Orion South Diamond Project Initial Results from Second Bulk Sample Trench: 2,409 Diamonds Weighing 123.27 Carats Recovered
NEWS RELEASE August 20, 2020
Stock Symbol: DIAM: TSX Saskatoon, Saskatchewan
STAR – ORION SOUTH DIAMOND PROJECT
INITIAL RESULTS FROM SECOND BULK SAMPLE TRENCH:
2,409 DIAMONDS WEIGHING 123.27 CARATS RECOVERED
Star Diamond Corporation (“Star Diamond” or the “Corporation” ) announces that a total of 2,409 diamonds
weighing 123.27 carats have to date been recovered from the second bulk sample trench ( 19FALCT004)
excavated on the Star Kimberlite. Th ese initial results are from the second of ten bulk sample trenches that
were excavated by Rio Tinto Exploration Canada Inc. (“RTEC”) in 2019 (see news releases dated June 3, and
October 8, 2019). The breakdown of the kimberlite intercepted, and diamonds recovered to date from trench
19FALCT004, are detailed in Table 1 below. The preliminary results from the first bulk sample trench were
previously disclosed by Star Diamond on August 4, 2020.
The average diamond grades from the first two trenches are similar to historical diamond grade results detected
from the underground bulk sampling and large diameter drilling (“LDD”) completed on the Star Kimberlite
between 2004 and 2009. These results are also similar to the overall weighted average grade (14 cpht) reported
in Star Diamond’s Preliminary Economic Assessment (“PEA”) of the Star and Orion South kimberlites (the
“Project”) (see news release dated April 16, 2018).
The three largest diamonds recovered to date from 19FALCT004 are 2.98, 2.03 and 1.99 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.
As disclosed by Star Diamond on August 4, 2020, there are indications that recent diamond breakage has
occurred in the diamond parcels recovered thus far from RTEC’s trench cutter bulk sampling program ,
suggesting that the extraction and /or processing systems being used by RTEC ma y be resulting in diamond
breakage. Comprehensive diamond breakage studies are required to assess the nature and extent of the
diamond breakage resulting from RTEC’s methods and the possibility that l arger diamonds would have been
recovered absent such breakage.
Senior Vice President Exploration and De velopment, George Read, states: “ The initial diamond results from
19FALCT004 and 19FALCT001 continue to show grades similar to the previous underground bulk sampling and
LDD performed by Star Diamond on the Star Kimberlite. Individual EJF kimberlite samples recovered in the first
two trenches exhibit a range of grades ( 9.81 to 21.22 cpht for 19FALCT004 and 4.88 to 23.34 cpht for
19FALCT001), which are as expected for the EJF kimberlite.”
To date, kimberlite material from five trenches (19FALCT001, 19FALCT004 , 19FALCT003, 19FALCT010 and
19FALCT008) has been processed by RTEC through the on-site Bulk Sample Plant (the “BSP”), with concentrates
forwarded to the Saskatchewan Research Council (“SRC”) for diamond recovery and reporting. Currently, only
the initial diamond results for the first and second trenches have been reported to Star Diamond by the SRC.
Star Diamond continues to seek to engage with RTEC regarding various technical and operational issues arising
from RTEC’s processes, including those that were identified in Star Diamond’s August 4, 2020 news release.
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Table 1. Initial d iamond stone and grade r esults provided for each kimberlite type sampled in Trench
19FALCT004
Kimberlite1
Type
Kimberlite
Intercept
(metres)
Drilled2
Tonnes
Carats3
(+1 DTC)
Grade4
(cpht)
Stones
(+1 DTC)
Stones
per tonne
(+1 DTC)
Largest
Stone
(ct)
URVKU 107.76-119.55 114.67 0.87 0.76 34 0.30 0.21
LJF 119.55-149.57 267.20 3.96 1.48 165 0.62 0.11
EJFMUDST 153.00-157.87 53.60 2.08 3.88 30 0.56 0.70
EJFMUDST 162.55-165.05 28.54 0.21 0.74 6 0.21 0.08
EJF5 149.57-233.89 840.34 116.15 13.82 2,174 2.59 2.98
Total 126.13 1,304.35 123.27 2,409 2.98
Notes
1. Kimberlite Types: URVKU Undifferentiated, reworked volcaniclastic kimberlite units; LJF: Late Joli Fou
Kimberlite; MJF: Mid Joli Fou Kimberlite; EJFMUDST: EJF with significant mudstone dilution; EJF: Early
Joli Fou Kimberlite. The URVKU and the LJF were 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 RTEC. 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
5. EJF total excludes two zones of EJFMUDST – mudstone dilution, which are listed separately
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. Secondary processing consisted of magnetic separation, grease table, X -ray luminescence (XRL)
sorting and caustic fusion. 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 provide significant advantages for future mine development.
During 2018, the Corporation announced the positive results of an independent 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
Vice-President of Exploration and Development, a registered P rofessional Geoscientist in the Provinces of
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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 PEA constitute forward-looking statements. Forward-looking statements contained or implied in this press release
include, but are not limited to, the Corporation’s expectations regarding the processing and analysis of , and reporting of results from,
the bulk samples previously collected by RTEC and the timeline for doing so , and disclosure s regarding the economics and project
parameters presented in the PEA.
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 including, but not limited to, 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, changes in exploration, development or mining plans due to exploration results and changing budget priorities of RTEC
or the Corporation, risks related to the legal proceedings commenced by the Corporation against RTEC , including the determination of
the Corporation’s pending injunction application by the Court, the effects of competition in the markets in which Star Diamond operates,
the impact of the COVID -19 pandemic, risks related to the operation of the BSP and the pr ocessing methods being used by RTEC and
the effectiveness thereof, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial
or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in the
Corporation's most 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 ca use 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 carefully consider the foregoing factors and other
uncertainties and potent ial 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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