TSX: DIAM
HIGH DIAMOND PRICES AND ELEVATED PROPORTIONS
OF TYPE IIa DIAMONDS
SASKATOON, SK, Feb. 21,
2023 /CNW/ - Star Diamond Corporation (TSX: DIAM)
("Star Diamond" or the company) is pleased to announce that the
company has completed an estimate of the diamond valuation and the
abundance of Type IIa diamonds from the from K6, K14, K91 &
K252 kimberlites of Buffalo Hills Joint Venture in north-central
Alberta. Star Diamond and Canterra Minerals Corporation
(CTM: TSX.V) each hold a 50 percent interest in the Buffalo Hills
project.
Highlights
- The diamond valuation exercise has shown that
kimberlites K14 and K6 have elevated modelled diamond prices,
US$ 160 per carat and US$ 180 per carat, respectively. The K6 parcel
includes three fancy yellow stones, the K14 four fancy yellow and
the K252 a fancy orange stone. The two highest value stones, which
are both from the K6, are 1.06 carats (US$
532) and 1.07 carats (US$
506). These diamond parcels are too small (carats and
stones) for rigorous diamond value estimates.
- The diamond typing exercise has shown presence of Type
IIa diamonds, in elevated proportions, in all four of these Buffalo
Hills kimberlites. The diamonds analysed represent a spectrum of
diamond sizes from +3 DTC (+0.026 carats) to 5 grainer (1.2
carats).
Ewan Mason, Interim CEO
said: "We are encouraged that the high diamond price estimates for
these kimberlites are significantly above the world average rough
price of US$116 (2021). This work has
also shown elevated proportions of Type IIa diamonds, in addition
to the stunning colours in these sample parcels. We will be
discussing with our partner what further work may be warranted at
site."
Diamond Valuation
Diamond valuations and characterisations as shown in the table
below were completed by Mr. Nelson
Karun, Diamond Specialist, Saskatchewan Research Council
("SRC") Diamond Services, on behalf of Star
Diamond.
Kimberlite
|
Carats
|
Stones
|
% Gem
Quality
|
% White
Colour
|
Faint to
no Fluorescence
|
Average
US$/Ct Parcel
|
Model
Price
(US$/ct)
|
K6
|
16.73
|
86
|
29.5
|
70.5
|
82.9
|
103.54
|
185*
|
K14
|
69.32
|
1,362
|
17.9
|
73.8
|
92.6
|
54.32
|
160
|
K91
|
4.17
|
103
|
17.9
|
54.6
|
89.7
|
53.61
|
N/A
|
K252
|
12.41
|
328
|
22.0
|
82.1
|
92.1
|
72.79
|
140*
|
*Very speculative due
to the small sample size
|
As observed by Mr. Karun, diamonds from these kimberlite bodies
exhibit good quality, colour and very low to no fluorescence. All
the parcels of diamonds appear to be statistically very similar in
terms of their graded characteristics. There is an inadequate
sample size for K91 to model the average diamond price. Extremely
speculative model prices are given for samples K6 and K252, due to
the small parcel size. K14 is a larger parcel size, and a price can
be modeled, but should still be used with caution.
Diamond Typing
These four kimberlites have diamond parcels with sufficient
diamonds to conduct preliminary diamond typing studies. The number
and the percentage of Type IIa diamonds for the Buffalo Hills
kimberlites studied are documented in the table below and shows
that these kimberlites have an anomalously high percentage of Type
IIA diamonds.
Diamonds +3 DTC
(0.026 carats) to 5 Grainer (1.2 carats)
|
|
Number of
Diamonds Typed
|
Number of Type
IIa
Diamonds
|
Percentage Type
IIa
Diamonds
|
K6 +3 (0.026 ct)
& above
|
78
|
4
|
5.1
|
K14 +7 (0.12 ct)
& above
|
126
|
3
|
2.4
|
K91 +3 (0.026 ct)
& above
|
47
|
3
|
6.4
|
K252 +3 (0.026 ct)
& above
|
153
|
7
|
4.6
|
Senior Technical Advisor to Star
Diamond, George Read,
states: "The presence of Type IIa diamonds in the Buffalo Hills
kimberlites increases the potential for the recovery of large (plus
100 carat), high-value diamonds from a future mine. Many
high-value, top colour, large specials (greater than 10.8 carats)
found in existing diamond deposits are Type IIa diamonds, including
all ten of the largest known rough diamonds recovered worldwide.
The presence of Type IIa diamonds strengthens the future potential
diamond pricing of these Buffalo Hills kimberlites."
Type IIa diamonds are very rare and generally account for less
than 2 percent of all natural rough diamonds mined world-wide from
kimberlite deposits. Only a small number of active diamond mines
regularly produce Type IIa diamonds with the most important of
these mines being Cullinan Diamond
Mine in South Africa,
Letseng Diamond Mine in the Kingdom of Lesotho and, more recently, Karowe Diamond
Mine in Botswana.
Fourier Transform Infrared ("FTIR") Spectrometry is used to
determine the concentration and aggregation state of nitrogen
within the diamonds using industry standard methods. All analyses
of nitrogen content and aggregation state were carried out at the
SRC high security diamond facility, with 24-hour video
surveillance. The SRC's Geoanalytical Laboratories is accredited to
the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory.
The Buffalo Hills Kimberlite District, which contains at least
38 individual kimberlite bodies, a number of which outcrop at
surface, is located within the East Peace District of north-central
Alberta, Canada. Exploration on
these kimberlites started in 1996, from which small parcels of
diamonds have been collected from various exploration programs on
many of those considered most prospective.
Star Diamond Corporation is a Canadian based corporation engaged
in the acquisition, exploration, and development of mineral
properties. Shares of the Corporation trade on the TSX
Exchange under the trading symbol "DIAM".
All technical information in this press release has
been prepared under the supervision of George Read,
Senior Technical Advisor to Star Diamond, a registered
Professional Geoscientist in
the Provinces of Saskatchewan and
British Columbia and Mark Shimell, Project Manager, a
registered Professional
Geoscientist in the Province of Saskatchewan and Alberta, who
are the Corporation's "Qualified
Persons" under the definition
of NI 43-101.
About Star Diamond
Corporation
Star Diamond is a Canadian-based
corporation engaged in the acquisition, exploration and development
of mineral properties. Shares of Star
Diamond trade on the Toronto Stock Exchange under the
trading symbol "DIAM". Star
Diamond's most significant asset is its interest in the Fort
à la Corne property in central Saskatchewan. These
kimberlites are located in close proximity to established
infrastructure, including paved highways and the electrical power
grid, which provide significant advantages for future mine
development.
Stay Connected with Us:
Twitter: https://twitter.com/StarDiamondCorp
LinkedIn: https://www.linkedin.com/company/star-diamond-corp
Facebook:
https://www.facebook.com/people/Star-Diamond-Corp/100058096376664/
Instagram: https://www.instagram.com/stardiamondcorp/
Caution Regarding
Forward-looking Statements
This press release contains "forward-looking statements" and/or
"forward-looking information" (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking statements in
this press release include, but are not limited to, Star Diamond's assessment of its cost and
management structure going forward.
These forward-looking statements are based on Star Diamond's current beliefs as well as
assumptions made by and information currently available to
Star Diamond and involve inherent
risks and uncertainties, both general and specific. Risks exist
that forward-looking statements will not be achieved due to a
number of factors including, but not limited to, developments in
world diamond markets, changes in diamond prices, risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar, changes in exploration, development or mining
plans due to exploration results and changing budget priorities of
Rio Tinto or Star Diamond, the
impact of changes in the laws and regulations regulating mining
exploration, development, closure, judicial or regulatory judgments
and legal proceedings, operational and infrastructure risks and the
additional risks described in Star
Diamond's most recently filed Annual Information Form,
annual and interim MDA.
SOURCE Star Diamond Corporation