Resource Estimate for Renard Diamond Deposit
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) -
Stornoway Diamond Corporation (TSX:SWY) is pleased to announce the February 07, 2011 SEDAR filing of a National Instrument ("NI") 43-101 technical report in support of the recently updated mineral resource estimate at the Renard Diamond Project in North Central Quebec. The Renard Diamond Project, which includes the Renard kimberlite pipes and the Lynx-Hibou system of kimberlite dykes, is a 50:50 joint venture with DIAQUEM INC. ("DIAQUEM"), a wholly-owned subsidiary of SOQUEM INC. ("SOQUEM"), itself a wholly-owned subsidiary of Societe generale de financement du Quebec ("SGF"), the Quebec government's main industrial and financial holding company.
On December 14, 2010, Stornoway announced an agreement to acquire DIAQUEM'S 50% interest in the Renard Diamond Project in a transaction that would make DIAQUEM a significant shareholder of Stornoway. Upon the closure of the acquisition, which is subject to the approval of Stornoway's existing shareholders at an extraordinary meeting to be held in Toronto on February 10th, 2011, Stornoway will have acquired 100% ownership of the project.
The newly published NI 43-101 report is based on a revised resource originally announced on January 24, 2011 and outlines a total Indicated Mineral Resource of 23.8 million carats, and a total Inferred Mineral Resource of 17.5 million carats, increases of 3% and 31% respectively over the previous estimate. Included in the revised mineral resource estimate is 12.9 million tonnes of near-surface kimberlite at Renard 65 containing 3.7 million carats now classified as an Inferred Mineral Resource. Additional resource upside has been identified in the form of a potential mineral deposit of between 23.5 to 48.5 million carats, an approximate two-fold increase over the previous estimate.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. In addition, the potential quantity and grade of any potential mineral deposit is conceptual in nature, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Qualified Persons
Mr. David Farrow, P.Geo. (BC) of GeoStrat Consulting Inc. is the independent Qualified Person responsible for the preparation of the mineral resource estimate for the Renard Diamond Project. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101. All of these Qualified Persons have reviewed and approved the contents of this release.
About Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in seven Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing.
About SGF
Societe generale de financement du Quebec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Quebec government. As part of its new mandate, SGF is authorized by the Quebec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred shares.
SOQUEM, a wholly-owned subsidiary of Societe generale de financement du Quebec, is to undertake exploration, development and mining activities throughout the province of Quebec.
About GeoStrat Consulting Inc.
GeoStrat Consulting Services Inc. a focused mineral resource consultancy, was established to leverage 50 years' experience of its founders, David Farrow and Darrell Farrow, in exploration, geological modelling, resource evaluation, production, resource reconciliation and accounting of diamond deposits around the globe. GeoStrat focuses on client interaction and involvement in developing resource models.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
Matt Manson, President and Chief Executive Officer
