STAR DIAMOND CORPORATION ANNOUNCES SECOND QUARTER 2024 RESULTS

TSX: DIAM

Star Diamond Corporation ("Star Diamond" or the "Company") reports that the unaudited financial results for the quarter ended June 30, 2024 will be filed today on SEDAR+ and may be viewed at www.sedarplus.ca once posted.

Star Diamond Corporation logo (CNW Group/Star Diamond Corporation)

Overview

Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing Saskatchewan's diamond resources. Star Diamond holds a 100% interest in the Fort à la Corne Project (the "Project") which includes the Star – Orion South Diamond Project located in 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.

The Company also holds a 100% interest in the exploration and evaluation properties and assets of the Buffalo Hills Diamond Project (see August 1, 2024 news release " Star Diamond Corporation Completes Acquisition of Buffalo Hills Diamond Project ") (the "BH Project").  Located approximately 400 kilometres northwest of Edmonton, Alberta, Canada , the BH Project includes 21 mineral leases covering 4,800 hectares and is a significant and accessible field of diamond bearing kimberlites, with similarities to the Company's Fort á la Corne kimberlites. The BH Project is located in the Buffalo Hills Kimberlite District, which contains at least 38 individual kimberlite bodies, of which 26 kimberlites are diamond bearing and a number of which outcrop at surface.

Fort à la Corne Project

On July 24, 2024 , the Company announced a revised Mineral Resources Estimate ("MRE") for the Star – Orion South Diamond Project. This 2024 MRE exhibits a significant increase over the previous MRE, which was published in November 2015 . The table below highlights the increases in tonnes, grade and carats from the 2015 MRE to the 2024 MRE.

Star and Orion South Combined Indicated MRE of 2015 and 2024

MRE Year

Kimberlites

Total
Tonnes

Grade
(cpht)

Total
Carats

Tonnes
% Increase

Grade
% Increase

Carats
% Increase

2015

Star & Orion South

377,184,000

14.7

55,530,580




2024

Star & Orion South

386,186,281

18.6

71,733,763

2 %

26 %

29 %

While there is a relatively small overall increase in tonnage (2%), the significant increases in diamond grade and total carats results from the integration of Star Diamond's underground bulk sample diamond data and large diameter drilling diamond data with RTEC's Trench Cutter ("TC") diamond data. The TC diamond samples benefitted from their processing through an efficient bulk sample plant using a modern flow sheet that ensures excellent liberation and recovery of diamonds throughout the diamond size range, but particularly in the smallest commercial size fractions (+1, +3, and +5 DTC). Diamond valuation exercises have shown that diamonds from Star and Orion South , in these three small size fractions, are unusually valuable, compared to other kimberlites, due to their excellent colour and abundance of octahedral stones. Nelson Karun , the Diamond Specialist appointed in the first quarter of 2024, was responsible for the diamond valuations that are used in the 2024 MRE.

Star Diamond , working in close consultation with statistician Peter Ravenscroft , has determined that only limited improvements in precision could be achieved by additional, prohibitively costly bulk sample programs, and that the extensive work already completed will allow for robust diamond price estimates on both Star and Orion South , with associated confidence limits allowing for quantified risk analysis as part of the Pre-Feasibility Study ("PFS"). Consequently, Star Diamond has determined that no additional bulk sampling is required on the Orion South Kimberlite for the rigorous estimation of these Mineral Resources, and this results in the savings of millions of dollars in exploration expenditures and shaves significant time off the completion of the PFS. This significantly increased 2024 MRE establishes an excellent foundation on which the PFS can now be built.

On March 26, 2024 , Star Diamond and Rio Tinto Exploration Canada Inc. ("RTEC") completed the previously announced transaction (the "Transaction") whereby RTEC has transferred to Star Diamond its 75% interest in the Project. As consideration for the Transaction, the Company issued RTEC 108,204,112 common shares with a deemed fair value of $9.2 million . In exchange for the common shares and RTEC's 75% interest in the Project, RTEC also transferred certain pieces of property, plant and equipment and $4.0 million .

After the close of the Transaction:

  • RTEC owns or controls, in the aggregate, 119,315,222 common shares representing a 19.9% interest in Star Diamond ;
  • Star Diamond has full control and responsibility for the Project and the previous joint venture agreement has been terminated;
  • RTEC has transferred to Star Diamond ownership of the trench cutter drill rig used by RTEC to complete its prior bulk sampling program at the Project;
  • RTEC has transferred to Star Diamond the Bulk Sample Plant located at the Project, including the TOMRA XRT diamond sorting machine;
  • RTEC and Star Diamond have entered into an Investor Rights Agreement whereby, among other things, RTEC was granted certain pre-emptive rights to maintain its 19.9% ownership interest in Star Diamond in connection with future financings undertaken by Star Diamond , and RTEC has agreed to certain standstill protections provided that RTEC will have the right to increase its 19.9% ownership position in the event that Star Diamond receives an acquisition proposal; and
  • Star Diamond has assumed responsibility for all future reclamation activities related to the Project. RTEC has provided on Star Diamond's behalf, for up to five years following closing, letters of credit in aggregate amount of $9.9 million to secure environmental remediation and reclamation activities related to the Project (as security for the letters of credit, RTEC has issued a promissory note to Star Diamond with a face value of $9.9 million which will be extinguished upon Star Diamond securing letters of credit with another party or in performing the reclamation activities).

Buffalo Hills Diamond Project

On August 1, 2024 the Company completed the acquisition of Canterra's 50% interest in the BH Project in exchange for 17,500,000 Star Diamond common shares (the "Consideration Shares"). One half of the Consideration Shares are subject to a 12-month lock-up arrangement. In addition to the common shares, Canterra was granted a 1% royalty interest in the Project. The Company now owns 100% of the BH Project.

Quarter End Results

For the quarter ended June 30, 2024 , the Company recorded a net loss of $1.6 million , or $0.00 per share, compared to a net loss of $0.9 million , or $0.00 per share, for the quarter ended June 30, 2023 . Excluding $0.5 million in non-cash charges, the increase in net loss, quarter over quarter, was due primarily to increased exploration and evaluation expenditures combined with an increase in corporate development costs (marketing).

Year to Date Results

For the six months ended June 30, 2024 , the Company recorded a net loss of $2.5 million , or $0.00 per share, compared to a net loss of $1.2 million , or $0.00 per share, for the six months ended June 30, 2023 . Excluding $0.5 million in non-cash charges, the increase in net loss, period over period, was due primarily to increased exploration and evaluation expenditures combined with increases to administration and corporate development costs.

The increase in exploration and evaluation expenditures for the current year's second quarter and first half versus the comparative periods in 2023 was a result of the Company's acquisition of RTEC's 75% interest in the Project and the assumption of operations. Expenditures incurred during the current periods presented included salaries, site labour and maintenance, site security, environmental compliance costs and contractor costs related to the Star and Orion-South Mineral Resources update.

At June 30, 2024 the Company had $1.5 million ( December 31, 2023 $0.6 million ) in cash and cash equivalents and working capital of $1.0 million ( December 31, 2023 - $(0.3) million ). The increase in working capital was a result of proceeds received from RTEC on the completion of the Transaction combined with net proceeds received from the January 2024 close of the second and final tranche of the non-brokered private placement offset by expenses incurred during the quarter. The ability of the Company to continue as a going concern and fund its expenses in an orderly manner will require additional forms of financing.

Selected financial highlights include:

Condensed Interim Consolidated Statements of Financial Position

As at

June 30,

2024

As at

December 31,

2023

Current assets

$   1.9  M

$  0.6  M

Property, plant and equipment and Investments

4.2  M

0.6  M

Exploration and evaluation assets

10.3  M

0.0  M

Current liabilities

0.9  M

0.9  M

Non-current liabilities

7.7  M

0.1  M

Shareholders' equity

$  7.8  M

$  0.2  M

Condensed Interim Consolidated Statements of Loss

Three months

ended

June 30, 2024

Three months

ended

June 30, 2023

Six   months

ended

June 30, 2024

Six months

ended

June 30, 2023

Expenses

$ 1.5 M

$ 0.6 M

$ 2.4 M

$ 1.2 M

Loss before undernoted items

1.5 M

0.6 M

2.4 M

1.2  M

Unwinding of discounts

0.1 M

0.00  M

0.1 M

0.00  M

Investment in Wescan Goldfields Inc.

0.05 M

0.3  M

0.1 M

0.00  M

Net loss

1.6 M

0.9 M

2.5 M

1.2 M

Net loss per share (basic and diluted)

$  0.00

$ 0.00

$  0.00

$ 0.00

Condensed Interim Consolidated Statements of Cash Flows

As at

June 30, 2024

As at

June 30, 2023

Cash flows used in operating activities

$ (2.3) M

$ (1.5) M

Cash flows from in investing activities

2.6  M

0.0  M

Cash flows from (used in) financing activities

0.7   M

(0.1) M

Net increase (decrease) in cash

1.0  M

(1.6) M

Cash – beginning of period

0.5   M

2.6  M

Cash – end of period

$  1.5  M

$  1.0  M

Outlook

Fort à la Corne Project

Subsequent to the successful close of the Agreement with RTEC (see "Corporate Developments"), Star Diamond's technical team will focus on the technical investigation and evaluation of the Star – Orion South Diamond Project, with the goal of a future development decision. The recent completion and publication of the 2024 MRE for the Star – Orion South Diamond Project lays the foundation of an updated PFS. The PFS, which is scheduled to commence in late 2024, will enable a Feasibility Study upon which a production decision can be based.

Buffalo Hills Diamond Project

The BH Project is now 100% under the control of Star Diamond . The Company is currently working with Canterra to ensure the efficient transfer of the mineral leases that cover the kimberlites of interest. A more detailed update on activities at the BH Project will be provided as it becomes available.

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 a 100% interest in the Project. The Project is 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 100% interest in the exploration and evaluation properties and assets of the BH Project located in north-central Alberta , Canada.

Technical Information

All technical information in this press release has been prepared under the supervision of George Read , Senior Vice President Corporate Development, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimell , Vice President Exploration, Professional Geoscientist in the Provinces of Saskatchewan and Alberta , who are the Company's "Qualified Persons" under the definition of NI 43-101.

Stay Connected with Us:
X (Twitter) - https://twitter.com/StarDiamondCorp
LinkedIn - https://www.linkedin.com/company/star-diamond-corp/
Facebook - https://web.facebook.com/stardiamondcorp
Instagram - https://www.instagram.com/stardiamondcorp
YouTube - https://youtube.com/@StarDiamondCorp

Caution 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. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, "may", "could", "would", "will", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. All statements, other than statements of historical fact, are forward-looking statements.

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 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, the Company's ability to obtain financing to further the exploration, evaluation and/or development of exploration and evaluation properties in which the Company holds interest, the economic feasibility of any future development projects, 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 risks and the additional risks described in Star Diamond's most recently filed Annual Information Form,  and annual and interim MDA.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this news release are made as of the date hereof and Star Diamond assumes no obligation to update any forward-looking statements, except as required by applicable laws.

SOURCE Star Diamond Corporation

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2024/08/c3801.html

News Provided by Canada Newswire via QuoteMedia

DIAM:CA
The Conversation (0)
Close up of diamonds in a mine.

Rio Tinto: Phase 1 of Diavik's A21 Pipe Complete, Diamond Production Next

Mining giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) said in a press release on Thursday, October 3, that it has completed the development and construction of Phase 1 of the A21 underground mine at its 100 percent-owned Diavik diamond mine.

The company detailed the construction process, which involved over 1,800 meters of underground tunnel development.

The Diavik diamond mine is located at the bottom of Lac de Gras in Canada's Northwest Territories. A21 is the fourth diamond pipe of the project and was opened by Rio Tinto in 2018. The company made the decision to go ahead with Phase 1 in February 2023, investing US$40 million.

Phase 1 of mining at A21 is expected to produce 1.4 million carats of diamonds.

Keep reading...Show less
A locked gate.

Burgundy Diamond Pauses Ekati Development, Asks Northwest Territories for More Support

Burgundy Diamond Mines (ASX:BDM,OTC Pink:BDMMF) has paused plans for further development at the Ekati diamond mine, saying diamond prices have fallen at least 20 percent since it acquired the project.

In a letter to RJ Simpson, premier of Canada's Northwest Territories (NWT), Burgundy said that along with the decreasing prices, the diamond industry has been receiving “very little support."

“Environmental requirements are getting unnecessarily more onerous, government agencies are inflexible to change and the burden placed on the asset is increasing,” the company said, adding that it may need to revisit the viability of the Ekati asset and focus on growth elsewhere should these problems continue.

Keep reading...Show less
1,094 carat rough diamond from Lucara Diamond's Karowe mine.

Lucara Continues Streak of Big Diamond Discoveries with 1,094 Carat Find at Karowe

Only a month after the discovery of the second largest diamond ever recorded, Lucara Diamond (TSX:LUC,OTC Pink:LUCRF) has announced the recovery of another significant stone from its Karowe mine in Botswana.

The new find is 1,094 carats compared to the massive 2,942 carat rough diamond uncovered by Lucara in August, solidifying Karowe’s reputation as one of the world’s most prolific sources of large diamonds.

The rough diamond is the sixth stone over 1,000 carats that Lucara has unearthed from the mine. According to the company, the EMPKS ore type at Karowe's South Lobe hosts these large, high-value stones.

Keep reading...Show less

STAR - ORION SOUTH DIAMOND PROJECT REVISED MINERAL RESOURCES ESTIMATE TECHNICAL REPORT FILED ON SEDAR+

Star Diamond Corporation ("Star Diamond" or the "Company") is pleased to announce that the Technical Report documenting the Revised Mineral Resources Estimate (see News Release dated July 24, 2024 ) for the Star Orion South Diamond Project (the "Project") has been filed on SEDAR+ ( www.sedarplus.ca ). This Technical Report has also been posted on the Star Diamond website: Technical Report 2024 .

Star Diamond Corporation logo (CNW Group/Star Diamond Corporation)

The scientific and technical information contained in this press release has been prepared and verified by A.C.A. Howe International Limited ("Howe"), under the supervision of Mr. Daniel C. Leroux, M.Sc., P. Geo. and the Mineral Resource estimation methodology under the supervision of Peter Ravenscroft , FAusIMM, of Ravenscroft Mining Advisors, an independent mining consultant, and a Qualified Person ("QP") within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. This Revised Mineral Resources estimate uses diamond industry standard methods which are rigorously applied to the Star and Orion South evaluation data, acknowledging the significant control that fundamental kimberlite geology has on the distribution of diamonds within these deposits.

The Revised Mineral Resources estimate will now be incorporated into a re-optimized open pit mine plan for the Project, which will include a re-evaluation of Mineral Reserves and an economic assessment based thereon. It is anticipated this work will be completed during 2024-25 and will result in an updated Pre-feasibility Study including a revised statement of Mineral Reserves for the Project, if warranted, and an economic assessment based thereon. Accordingly, the Mineral Resources and economic assessment previously disclosed by Star Diamond for the Project should no longer be relied upon.

All technical information in this press release has been prepared under the supervision of George Read , Senior Vice President Corporate Development, a registered Professional Geoscientist in the Provinces of Saskatchewan and British Columbia and Mark Shimell , Vice President Exploration, a registered Professional Geoscientist in the Provinces of Saskatchewan and Alberta , who are Star Diamond's QP's under the definition of NI 43-101.

About Star Diamond Corporation

Star Diamond 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's most significant asset is its 100% interest in the Fort à la Corne Project in central Saskatchewan.  These kimberlites are located in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.

Stay Connected with Us:
X (Twitter) - https://twitter.com/StarDiamondCorp
LinkedIn - https://www.linkedin.com/company/star-diamond-corp/
Facebook - https://web.facebook.com/stardiamondcorp
Instagram - https://www.instagram.com/stardiamondcorp
YouTube - https://youtube.com/@StarDiamondCorp

Caution 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 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 suggesting future outcomes or language suggesting an outlook. In particular, statements regarding Star Diamond's future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves or mineral resources constitute forward-looking statements.

Forward-looking statements in this press release include but are not limited to statements with respect to the Revised Mineral Resources Estimate; improvement in the Mineral Resource estimate; the re-optimization of the Star and Orion South open pits; the publication of the Technical Report; and the aim of the Company to undertake a PFS and Feasibility Study and timelines.

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 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 Star Diamond, 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 Star Diamond's most recently filed Annual Information Form, annual and interim MDA.

SOURCE Star Diamond Corporation

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2024/05/c1009.html

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
2,492 carat diamond recovered at Lucara Diamond's Karowe mine.

Lucara Unearths 2,492 Carat Diamond in Botswana, Second Largest in History

Lucara Diamond (TSX:LUC,OTC Pink:LUCRF) announced the discovery of an "epic" 2,492 carat diamond at its Karowe mine in Botswana on Wednesday (August 21), saying it is one of the largest rough diamonds ever found.

Media reports indicate that it is second only to the 3,106 carat Cullinan diamond found in South Africa in 1905.

The site where the diamond was discovered is no stranger to producing large stones. Previous significant discoveries from Karowe include the 1,758 carat Sewelô and the 1,109 carat Lesedi La Rona diamonds.

Keep reading...Show less
Burgundy Diamond Mines Limited

Burgundy Concludes Reclamation Surety Bonds Agreement

Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) is pleased to confirm that the agreement with the surety providers in relation to the reclamation bonds has been formally concluded and signed by all parties, in line with previously agreed principles (see ASX announcement dated March 13th, 2024).

Keep reading...Show less

Latest Press Releases

Related News

×