Geotechnical Drilling Program Underway ON Orion North Kimberlite to Assess Future Open Pit Design
NEWS RELEASE January 19, 2021
Stock Symbol: DIAM: TSX Saskatoon, Saskatchewan
GEOTECHNICAL DRILLING PROGRAM UNDERWAY ON ORION
NORTH KIMBERLITE TO ASSESS FUTURE OPEN PIT DESIGN
SASKATOON, Saskatchewan, January 19, 2021 – Star Diamond Corporation (“Star Diamond” or the
“Corporation”) today announced that Rio Tinto Exploration Canada Inc. (“Rio Tinto Canada”) commenced an
eight hole geotechnical drilling program on and in proximity to the Orion North Kimberlite in early January 2021.
Star Diamond understands that Earth Drilling Co. Ltd of Regina Saskatchewan was contracted to drill an eight-
hole program at four locations, with two holes at each location. The drill rigs being utilized are capable of sonic
drilling to obtain representative samples of the glacial overburden and core drilling for the underlying kimberlite
or host rock sediments. These rigs can sample to a depth of 220 metres below surface. Two of the drilling
locations are situated over the Orion North kimberlite and two drilling locations are just to the south of the
Orion North kimberlite. Star Diamond has been advised that t he aim of th is drilling is to investigate the
geotechnical properties of the overburden, kimberli te and host rock sediments ., with this information to be
used for future open pit design. Parts of the Orion North Kimberlite have shallower overburden ( of
approximately 95 metres) than both the Star and Orion South Kimberlite.
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 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 Orio n North drilling program by Rio Tinto Canada and
expected use of information from such drilling program ; disclosure regarding the economics and project parameters presente d in the
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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 including, 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 th e legal proceedings
commenced by the Corporation against Rio Tinto Canada and any future legal proceedings between them, the impact of the COVID -19
pandemic, risks related to the operation of the on -site Bulk Sample Plant and the processing methods being u sed by Rio Tinto Canada
and the effectiveness thereof, risks related to diamond breakage and cost overruns and other consequences arising from Rio Ti nto
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 c ause 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 sho uld 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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