Stornoway Diamond Corporation (TSE:SWY) Thursday said it has received the principal regulatory approval required to commence mine construction.
The global Certificate of Authorization for the Renard Diamond Project was awarded by the Québec Ministère du Développement Durable, de l’Environnement,de la Faune et des Parcs (MDDEFP). It was issued following more than 2 years of formal environmental study, community engagement and public consultation.
"Today’s news represents the most significant milestone in the development of the Renard Diamond Project achieved to date," Stornoway’s president and CEO Matt Manson said.
"It comes just 11 months since the filing of the project’s Environmental and Social Impact Assessment, an accomplishment that reflects the high quality of the work undertaken by Stornoway’s project team and partners, and the broad support that the project enjoys within the nearby communities of Mistissini, Chibougamau and Chapais.
"The MDDEFP global Certificate of Authorization is the most important element of the permitting process for mining projects in Québec. As of today we are able to say that the principal regulatory hurdle for the Renard Diamond Project is behind us.”
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. 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 an estimated $802 million, with a life of mine operating cost of $54.71 per tonne giving a 68 per cent operating margin over an initial 11 year mine life.
Stornoway is a leading Canadian diamond exploration and development company. Its flagship asset is the 100 per cent-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.