Canadian diamond explorer Stornoway Diamond (TSX: SWY) said Tuesday it has completed its exploration drilling program at the Renard Diamond project in North Central Quebec, leading to the expectation of an increase in the project's resources.
The fall program, which comprised of six holes totaling 3,020 metres, was a continuation of a step-out program of deep drilling first initiated last winter, and was designed to assess the size and composition of several kimberlite pipes outside the project's established NI 43-101 compliant mineral resources.
Highlights from the drilling program include new intersections of kimberlite outside the current geological models in two new drill holes at Renard 3, in one hole at Renard 4 and in two holes at Renard 65.
All three of the most recent drill holes at Renard 3 demonstrated that additional kimberlite is present between approximately 295 and 434m below surface, while the four most recent drill holes at Renard 4, in conjunction with recent geotechnical drilling in the area of a potential open pit, could imply that Renard 4 has a plunge to the east and south.
Additional kimberlite at Renard 4 was intersected in both of these areas at depth, including hole R4-53 which terminated in kimberlite at a vertical depth of 759 metres.
The company said that new drilling at Renard 65 suggested that previous estimates on the dimensions of its kimberlite have been conservative, and an increase in tonnage estimates can now reasonably be expected, in particular on the eastern and southern sides. In addition, drill hole R65-34 now confirms the presence of kimberlite to a minimum depth of 513m below surface.
As a result of the findings, Stornoway anticipates an increase in the quantity of inferred mineral resources at Renard 3 and 4, and in the amount of potential mineral deposit at Renard 3, 4 and 65. The company also expects a conversion of potential mineral deposit over the uppermost elevations of Renard 65 to inferred mineral resources, it said.
During the program, the company as well completed a new drill hole at Renard 1, which does not currently form part of the project's mineral resources, confirming considerable size potential for high diamond content, and allowing the sampling of kimberlite units for microdiamond analysis. Renard 1 lies less than 500 metres north of Renard 65, and was originally discovered in 2001.
"The results of the fall drill program have confirmed that the Renard kimberlite pipes are larger at depth than previously assumed," said president and CEO Matt Manson.
"As well as the expected boost to the project's inferred mineral resources, the drilling serves to bring out the extensive resource upside below the level of the existing conceptual mine plan at Renard, and confirms the potential for a considerable mine life at the project."
Stornoway expects an updated NI 43-101 compliant mineral resource estimate following the completion of all analytical work.
The Renard diamond project is a 50:50 joint venture with Diaquem, a subsidiary of Soquem, itself a subsidiary of the Quebec government's main industrial and financial holding company.
Currently, Renard's NI 43-101 compliant mineral resource stands at 23.0 million carats of indicated mineral resource and 13.3 million carats of inferred mineral resource. An additional 26.8 to 45.7 million tonnes, containing between 12.2 and 26.5 million carats, is currently characterized as a potential mineral deposit.
Stornoway was up more than 3% on Tuesday, trading at $0.64 as of 10:54am ET.