Stornoway's Renard Diamond Mine Half Complete, Resource Estimates Rise

Mining and Exploration
10/12/2015 12:32

Stornoway Diamond Corp. has announced in its Q2 2016 results that progress of the Renard Diamond Project - Quebec's first diamond mine - continues in line with the planned schedule and budget. It is currently 53% complete. During the quarter, total project Indicated Mineral Resources were increased 11% to 30.2 million carats, including a 16% increase in Indicated Mineral Resources at Renard 2 to 21.6 million carats. New Inferred Mineral Resources at Renard 2 were defined to 850 meters depth. Stornoway's net earnings decreased by C$1.4 million ($1.03 million) to C$10.3 million ($7.6 million) in Q2 2016. Currency rate adjustments enabled them to end the quarter with a cash position of $290.3 million, compared with $270.1 million at the end of the previous quarter.

Matt Manson, President and CEO, states: “At the half way point in the construction of the Renard Diamond Project, we are pleased to report continued construction progress on or ahead of planned schedule and a forecast cost to complete within our fully funded C$811 million capital budget. For another quarter, a significant foreign exchange gain on our current and committed US dollar funds is serving to strengthen our cash position as we look forward to plant commissioning and project ramp up starting late next year. We end 2015 with a record of steady progress against plan, and a stronger financial position than expected.”