Osisko Gold Royalties, one of the secured creditors which acquired Stornoway's assets and properties a year ago as well as its debts and liabilities yesterday announced the Renard mine operations will resume later this month, after a four-month suspension due to liquidity issues. The restart plan includes a further cost reduction of $30 million and a commitment to boost working capital with another $30 million by shareholders. Stornoway is also expected to bring over 300k carats of unsold rough to the market later this year.
Stornoway Diamond Corporation has issued its annual results, detailing a memorable 2016. Their Renard Diamond Mine officially opened on October 19, 2016, and following the commencement of ore processing on July 15, 2016, commercial production was formally declared on January 1, 2017. The first sale of Renard Diamonds was held during November in Antwerp in Belgium. In total, 38,913 carats were sold at an average price of US$195 per carat, for proceeds of US$7.6 million (C$10.2 m).
Stornoway Diamond Corporation today announced a momentous occasion for the Canadian miner: processing of ore has commenced at the Renard Diamond Project in north-central Québec. This marks the beginning of a processing ramp-up designed to achieve 100% of plant nameplate capacity (2.16Mtons/yr at 78% plant utilization) within 9 months, according to their press release. As of July 13, 2016, 1,002,888 tons of ore had been stockpiled, sufficient to commence and maintain the planned ramp-up.
"Junior miners almost never make the leap into successful producers with large-scale operations and happy shareholders", writes the Financial Post. "But Stornoway Diamond Corp., which is on track to bring Quebec’s first diamond mine into production this year, showed it really can be done, even in a rough market. Unfortunately, it would be pretty tough to replicate the Stornoway model. It required being in the best possible jurisdiction, great exploration success, incredible timing and a fair bit of luck.