Stornoway Announces Positive Renard Feasibility Study

Stornoway Diamond Corporation (TSX:SWY) announced the results of the Feasibility Study for the Renard Diamond Project located in North Central Québec.

As quoted in the press release:

Highlights of the study are as follows:

• Base case estimates of Net Present Value (“NPV”) of C$672 million at a 7% discount rate and Internal Rate of Return (“IRR”) of 18.7% before taxes and mining duties, and C$376 million and 14.9% after taxes and mining duties.
• Probable Mineral Reserves of 18.0 million carats representing 23.0 million tonnes at an average grade of 78 carats per hundred tonnes (“cpht”), after allowance for mining dilution and ore recovery, and at a weighted average diamond valuation of US$180/carat.
• 11 year reserve-based mine life with maximum diamond production peaking at 2.1 million carats/annum, and averaging 1.7 million carats/annum life of mine.
• Gross revenue, in real terms, of C$4,112 million and operating cash flow of C$2,677 million.
• Initial estimated capital cost of C$802 million, including contingencies.
• An estimated operating cost averaging C$54.71/tonne ($70.27/carat) life of mine, and yielding an operating margin of 68%.

Stornoway Diamond Corp. President and CEO, Matt Manson, said:

“Today’s announcement is a significant milestone on the road towards Québec’s first diamond mine. This Feasibility Study presents a project with strong cash flow, a low risk operating profile, and robust margins. Our estimates for each capital, operating and revenue parameter are blue-chip and realistic.”

Click here to read the Stornoway Diamond Corporation (TSX:SWY) press release