Stornoway – Developing Quebec’s First Diamond Mine
Overview
Stornoway Diamond Corporation (TSX:SWY) is a leading Canadian diamond development and exploration company. The Company’s flagship property is the 100%-owned, Renard Diamond Project, located in north-central Quebec. Currently in the permitting stage having released a feasibility study and environmental impact assessment in December of 2011, the project is on track to becoming Quebec’s first diamond mine and Canada`s next.
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The Company also maintains a pipeline of earlier-stage projects for long-term Company growth. Two of which, Pikoo and Aeon, are early-stage projects with targets slated to be drill-tested in 2012 or 2013. Three other projects (Aviat, Qilalugaq, and Timiskaming) are in the advanced stage of assessment and have the potential to become the pipeline projects to Renard.
Investment Highlights
- Management and technical team with unparalleled experience in the Canadian diamond industry through experience from the discovery and development of the Diavik Mine in the 90`s with Aber Diamonds, now Harry Winston.
- 100% ownership of one of the best emerging, diamond development stories worldwide; a bankable feasibility study with an 18 million carat reserve with very large growth potential (17 million carat indicated resource and a potential exploration upside of 24-49 million carats) strong mining margins, road and hydro power potential, modest capex and opex numbers, located in a supportive mining jurisdiction: Quebec.
- Supportive large shareholders in Quebec: 37% owned by the Quebec Government, 9% by Agnico Eagle (both on a fully diluted basis).
- Heading into a potential 25 years of production at Renard during a time when world diamond reserves are being depleted and the market for diamonds is rapidly growing through emerging markets China and India.
- High quality Canadian diamonds with June 2011 modeled average value of $182 US per carat (above world average of ~$90-$100 US per carat).
- Undervalued compared to current project valuations. Analyst coverage by seven different firms are available.
- High potential for new discovery through grassroots projects and value growth potential in future development of Advanced Stage portfolio (Aviat, Qilalugaq, Timiskaming): excellent project pipeline.
Diamond Project Pipeline
Chief Property
Renard Diamond Project
The 100% owned Renard Diamond Project, Stornoway’s flagship asset, is located near the Otish Mountains in north-central Quebec and is well on track to becoming Quebec’s first diamond mine. The project benefits from a large and growing resource, good mining conditions, strong social acceptance, a modest environmental footprint, and the development of direct-to-mine infrastructure under the auspices of Quebec’s “Plan Nord”.
The Renard kimberlite pipes, and the nearby “Lynx Hibou” system of kimberlite dykes, were discovered starting in 2001 following five years of grass roots exploration over an area of more than 400,000 square kilometres of the eastern Archean Superior craton in northern Quebec. Initial exploration was conducted under a joint venture between Ashton Mining of Canada Inc. and SOQUEM inc. Stornoway acquired Ashton in January 2007 and in April 2011 acquired the remaining 50% in the project held by DIAQUEM Inc. a subsidiary of SOQUEM.
A positive feasibility study was announed for the project on November 16, 2011. This mine plan is based on 27 mtonnes (24 mcarats) of National Instrument (“NI”) 43-101 compliant Indicated Mineral Resources in the Renard 2, 3 and 4 kimberlites, which represents the Mineral Resources available for potential conversion to Mineral Reserves.
Separate from the Renard Feasibility Study, Stornoway is developing a Long Term Business Plan (“LTBP”) based on the addition of 31 mtonnes (17 mcarats) of NI 43-101 compliant Inferred Mineral Resources within the scope of the mine infrastructure contained within the Feasibility Study. The LTBP is expected to outline an increased production rate and extended mine life, with underground mine development at Renard 2, 3, 4 and 9 to a maximum 700 meters depth, and an open pit at Renard 65. A significant quantity of non-resource, potential mineral deposit has been identified in addition to the NI 43-101 compliant resources, and all pipes remain open at depth.
The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are referred to the NI 43-101 compliant technical report dated February 3rd, 2011 with respect to the disclosure of Mineral Resources for the Renard Diamond Project.
Renard Diamond Project Digital Fly-Through Video
Management
Matt Manson – President, Chief Executive Officer and Director
Matt Manson has over 14 years of experience in diamond exploration, development and production. He was appointed President of Stornoway in March 2007 following the acquisition of Ashton Mining of Canada and Contact Diamond Corporation, and subsequently President & CEO in January 2009. Between 1999 and 2005 he was employed by Aber Diamond Corporation (now Harry Winston Diamond Corporation) as VP Marketing and subsequently VP Technical Services & Control, during which time he participated in the US$230m project financing for the Diavik Diamond Project and oversaw Aber’s technical and marketing operations. Matt is a director of Karmin Exploration Inc., and a graduate of the University of Edinburgh (BSc Geophysics, 1987) and the University of Toronto (PhD Geology, 1996).
Patrick Godin – Chief Operating Officer, Director
Mr. Godin is a professional mining engineer with more than 20 years of experience in all aspects of mine development, construction and operation. Prior to joining Stornoway, Mr. Godin held the position of Vice President, Project Development, for G Mining Services Inc. of Montreal, with responsibility for the successful development of the Essakane Project in Burkina Faso under contract to IAMGOLD Corporation. Between 2007 and 2008 he oversaw the development of the Nunavik Nickel Project as Vice President Operations for Canadian Royalties Inc. Between 1991 and 2007 he held successively senior positions with Cambior Inc. and its affiliate companies, with experience in the development and management of several mining operations in the Abitibi-Témiscamingue region of Québec, and culminating in the role of President and General Manager of CBJ-CAIMAN S.A.S., the Cambior, and subsequently IAMGOLD, subsidiary in French Guiana.
Mr. Godin is a member of the Ordre des Ingénieurs du Québec, a director of Orbit Garant Drilling Inc. (TSX-OGD), and a member of the Technical Advisory Committee of the Canada Centre for Mineral and Energy Technology (“CANMET”).
Zara Boldt – Vice-President Finance and Chief Financial Officer
Zara Boldt has held progressive positions with several mineral exploration companies, in addition to working for a national brokerage firm for several years. Her most recent resource industry roles include CFO for Sherwood Copper Corporation from May 2006 to May 2007 and Controller for the Northair Group of Companies between May 2004 and April 2007. Ms. Boldt is a Certified General Accountant and a graduate of the University of Puget Sound in Tacoma, Washington. Beyond her role at Stornoway, Ms. Boldt currently serves as a Corporate Secretary for Strongbow Exploration Inc. and North Arrow Minerals Inc. and is a Director of Troon Ventures Ltd.
Robin Hopkins – Vice-President, Exploration
Robin Hopkins, P.Geol. (NT/NU), has held this position since January 2006 and was Chief Technical Officer for the predecessor company, Stornoway Ventures Ltd., since 2003. Mr. Hopkins was Vice-President, Exploration, for Navigator Exploration Corporation between 2000 and 2004, and prior to that a key member of the Aber Resources Ltd. exploration team that discovered the Diavik Diamond Project pipes in the Northwest Territories in 1994. With more than 20 years exploration experience throughout Canada, Greenland and southern Africa since graduating from the University of Waterloo (HBASc, Earth Sciences), Mr. Hopkins is a Qualified Person under NI 43-101, and the Company’s diamond exploration programs are conducted under his direction.
Dave Skelton – Vice-President, Project Development
Mr. Skelton brings more than 21 years of experience as a geologist including 15 years in diamond exploration and advanced evaluation. For the last 6 years, Mr. Skelton has managed the Renard Diamond Project, recently the subject of a positive Preliminary Assessment study released on October 28, 2008. Renard is Stornoway’s most advanced project and remains on track to be developed as Quebec’s first diamond mine.
Ghislain Poirier – Vice-President, Public Affairs
Ghislain Poirier is a geological engineer with more than 20 years of experience in the mining exploration industry. He is a graduate of Université Laval in 1984 and he obtained a masters degree in economic geology from Université du Québec à Montréal (UQAM) in 1987. From 1988 to 1991, he was involved as a consultant for several junior companies. From 1991 to 2005 he was employed by SOQUEM, a Quebec crown corporation involved in the mineral exploration industry.
During this period he was involved in the discovery of the Renard diamond deposit as the joint venture partner of Ashton Mining of Canada inc. He joined Ashton in 2006 as Manager Environment and Public Affairs, a position that he is still responsible for with Stornoway Diamond Corporation. He is member of the Ordre des Ingénieurs du Québec (OIQ) and he has been a board member of the Association de l’Exploration Minière du Québec (AEMQ) for 10 years. In January 2009, he was appointed president of AEMQ for a 2 years mandate.
Board of Directors
Tony Walsh – Chairman of the Board
Michel Blouin – Director, Nominee of Investissement Quebec
Yves Harvey – Director
John LeBoutillier – Director, Nominee of Investissement Quebec
Monique Mercier – Director, Nominee of Investissement Quebec
Peter Nixon – Director
Ebe Scherkus – Director, Nominee of Agnico-Eagle Mines Limited
Serge Vézina – Director
