JOHANNESBURG (miningweekly.com) – Production is under way at TSX-listed Stornoway Diamond Corporation’s Québec-based Renard diamond mine, the only diamond mine in the province, which was officially opened on Wednesday at a ceremony presided over by Québec Energy and Natural Resources Minister Pierre Arcand.
Stornoway president and CEO Matt Manson noted that the ceremony marked the culmination of 20 years of work to bring the $946-million project from a greenfield exploration concept to a fully operating new diamond mine.
“While we celebrate the official opening ceremony today, our production ramp-up continues and we remain on schedule to achieve commercial production by the year-end,” said Manson, adding that a long list of individuals could claim a share in the success of the enterprise.
COO Patrick Godin added that Stornoway had, for several years, relied on its mineral resources, shareholders, employees and stakeholders to bring the project to fruition. “The strength, commitment, determination and ability of these four mainstays are what make us the most proud today,” he said.
The Renard diamond mine is located about 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. On July 8, 2014, Stornoway announced the completion of a $946-million project financing transaction to fully fund the project to production.
According to an updated mine plan and mineral reserve estimate, Renard has the potential to become a significant producer of high-value rough diamonds over an initial 14-year mine life.
Probable mineral reserves stand at 22.3-million carats, while total indicated mineral resources, inclusive of the mineral reserve, stand at 30.2-million carats, with a further 13.35-million carats classified as inferred mineral resources, and 33-million to 71.1-million carats classified as nonresource exploration upside.
Renard’s average yearly diamond production is forecast at 1.8-million carats a year over the first ten years of mining, at an average valuation of $155/ct, based on March 2016 terms.
Construction at Renard commenced on July 10, 2014, while processing of ore commenced on July 15, 2016.