Stornoway Diamond Corporation (TSX-SWY) is pleased to announce that Québec ministère du Développement durable, de l’Environnement et des Parcs (the “MDDEP”) issued a Certificate of Authorisation for the Route 167 Extension highway development project that will provide year round road access to Stornoway’s 100% owned Renard Diamond Project by way of the communities of Mistissini and Chibougamau. The issuing of this Certificate of Authorization clears the way for the road’s proponent, the Québec ministère des Transports (“MTQ”), to now commence road construction activities.
Matt Manson, Stornoway’s President and CEO, commented “Today’s news is a significant milestone in the development of the Route 167 Extension, and by association the Renard Diamond Project. The granting of the road’s Certificate of Authorization, following comprehensive social and environmental review, reflects the broad community consensus in support of responsible resource development in the James Bay region of Québec. Building upon the recent release of a positive feasibility study for Renard, our own permitting process, which follows a similar path with the same permitting agencies, remains on schedule for completion during 2012.”
The Route 167 Extension Project, like the Renard Diamond Project, falls under the environmental protection regimes of the James Bay and Northern Québec Agreement (the “JBNQA”) and the Canadian Environmental Assessment Act. Stornoway expects to file an Environmental and Social Impact Assessment for the Renard Diamond Project shortly and, subject to a schedule to be established by the Review Committee of the JBNQA (“COMEX”) and the Canadian Environmental Assessment Agency, and the satisfaction of all regulatory requirements, it is currently expected that public hearings will be held in the first half of 2012 and that the project will be eligible for the receipt of Québec and Federal Certificates of Authorization by the middle of 2012.
The Route 167 Extension will be constructed as a 243 km-long, 70 km/hour two lane gravel-top highway under the supervision of the MTQ. The road will be designated as a multi-service provincial highway connecting Renard to the end of the current Route 167 at Lac Albanel (Temiscamie), and will provide access to a number of other prospective mining projects as well as the new Albanel-Temiscamie-Otish Park. Starting in 2015, Stornoway has agreed to contribute $44 million to the road’s $332 million construction cost, amortized over a ten year period, and to contribute to the cost of road maintenance (Stornoway Diamond Corporation press release dated August 1st, 2011).
About the Renard Diamond Project
The Renard Diamond Project is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of North-Central Québec. In November 2011, Stornoway released the results of a Feasibility Study for Renard that highlighted the potential of the project to become a significant producer of high value rough diamonds over a long mine life. Current NI 43-101 compliant Probable Mineral Reserves stand at 18.0 million carats, with a further 17.5 million carats classified as Inferred Mineral Resources and 23.5 to 48.5 million carats classified as non-resource exploration upside. All kimberlites remain open at depth. Pre-production capital cost stands at C$802 million, with a life of mine operating cost of C$54.71/tonne giving a 68% operating margin over an initial 11 year mine life. Production start-up is scheduled for 2015. Readers are referred Stornoway’s press release dated November 16th, 2011, and to the technical report filed on www.sedar.com and dated February 3rd 2011, for further details and assumptions relating to the Renard Diamond Project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY. Our flagship asset is the 100% owned Renard Diamond Project, on track to becoming Québec’s first diamond mine. Stornoway also maintains an active diamond exploration program with both advanced and grassroots programs in the most prospective regions of Canada. Stornoway is a growth oriented company with a world class asset, in one of the world’s best mining jurisdictions, in one of the world’s great mining businesses.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ “Matt Manson”
Matt Manson
President and Chief Executive Officer
