Following the successful conclusion of the construction and ramp-up phases for its flagship Renard Diamond Project, Stornoway Diamond Corporation has unveiled an extensive and ambitious exploration program for 2018. This strategic initiative underscores the company’s renewed focus on expanding its resource base and identifying new diamond-bearing kimberlites, charting a robust future for its operations in Canada.
Stornoway Greenlights Dual-Purpose Exploration Strategy
Yesterday, Stornoway’s board of directors formally approved a comprehensive exploration strategy encompassing both brownfield and grassroots initiatives. This two-pronged approach is meticulously designed to achieve critical objectives: first, to actively search for entirely new diamond discoveries that could form the bedrock of future projects; and second, to rigorously explore and unlock the significant upside potential inherent within the existing resource base of the Renard mine. This balanced strategy aims to deliver both immediate value enhancement and long-term pipeline development.
A Significant Investment in Future Growth: The $4.6 Million Exploration Budget
To fuel these critical exploration efforts, Stornoway Diamond Corporation has committed a substantial budget of $4.6 million. This investment signals a strong commitment to sustainable growth and underlines the company’s confidence in the geological prospectivity of its current holdings and newly acquired claims. The allocation of such a significant sum immediately after bringing the Renard mine into full production demonstrates a strategic pivot towards securing the next generation of diamond assets.
Detailed Overview of the 2018 Exploration Program Components
The 2018 exploration program is multifaceted, featuring several key components spread across Stornoway’s diverse portfolio of properties. Each element is tailored to specific geological objectives, from delineating existing resources to pioneering new discoveries:
Targeted Drilling for New Kimberlite Discoveries at Renard Property
A cornerstone of the program involves an aggressive drilling campaign focused on the Renard Property. Stornoway plans to drill 100 distinct targets, each carefully selected based on comprehensive geological and geophysical data analysis. The primary objective of this intensive effort is the discovery of new kimberlite bodies – the geological hosts for diamonds. This systematic approach aims to expand the known diamond footprint within the Renard district, potentially leading to satellite deposits or extensions of the current mining operations.
Resource Delineation and Mine Plan Acceleration at Renard 3
In parallel with new discovery efforts, the company will conduct 5,000 meters of delineation drilling specifically targeting the Renard 3 kimberlite pipe. Delineation drilling is a crucial step in mineral resource development, providing detailed geological and grade information to precisely define the boundaries, geometry, and internal characteristics of an ore body. This particular program at Renard 3 is strategically designed to achieve two vital outcomes: the conversion of existing high-grade mineral resources from inferred to indicated or measured categories, thereby enhancing confidence in the resource model; and, critically, the acceleration of these high-grade resources into the Renard mine plan, promising improved operational efficiency and potential for increased diamond production in the near to medium term.
Grassroots Exploration: Expanding Horizons Across Canada
Beyond the immediate vicinity of the Renard mine, Stornoway is also committing resources to grassroots sampling and drilling on newly acquired claims situated in both eastern and western Canada. Grassroots exploration represents the earliest stage of mineral exploration, often involving regional prospecting, geochemical sampling (such as till sampling), and preliminary geophysical surveys to identify areas with high potential for new mineral deposits. This forward-looking component of the program is essential for building a robust project pipeline for the future, ensuring Stornoway’s long-term sustainability and growth in the competitive diamond industry.
Projected Timeline and Follow-Up Actions
The execution of the 100-target drill program on the Renard Property is slated to commence in March. This initial drilling phase will be followed by meticulous micro-diamond assessment of any kimberlite samples recovered. Micro-diamond analysis is a critical early-stage evaluation technique used to determine the diamond potential of a kimberlite by analyzing the number, size, and characteristics of very small diamonds. Should any discoveries prove promising, additional delineation drilling will be conducted to further evaluate their economic viability and integrate them into future development plans.
A Renewed Strategic Vision: Matt Manson’s Perspective
Matt Manson, President and CEO of Stornoway Diamond Corporation, articulated the company’s invigorated strategic direction, stating, “In 2018, Stornoway is turning with a renewed focus to exploration and new project development. Our objective is both brownfield discovery and resource expansion at our existing Renard Mine, and new exploration geared towards the creation of a viable project pipeline for the future.” This statement encapsulates the balanced approach, aiming to maximize value from current operations while simultaneously building for long-term growth.
Leveraging Decades of Diamond Exploration Expertise
Manson further elaborated on the company’s strengths, emphasizing the critical role of the exploration budget and the unparalleled experience of Stornoway’s team. “The bulk of the 2018 exploration budget will be allocated to drilling,” he confirmed, highlighting the direct and aggressive nature of the program. He proudly noted the illustrious history of Stornoway’s exploration team: “Since the early 1990s, Stornoway’s exploration team has been involved, individually or collectively, in the discovery of more than 200 kimberlites in Canada.”
This extensive track record includes direct involvement in the discovery or advancement of several world-class diamond mines, such as Diavik, Snap Lake, and, of course, the Renard mine itself. Furthermore, their expertise extends to significant kimberlite fields including Aviat, Churchill, Pikoo, Qilalugaq, Coronation Gulf, Wales Island, Temiscaming Attawapiskat, Buffalo Hills, and most recently, Adamantin. This profound depth of experience in Canadian diamond geology provides Stornoway with a significant competitive advantage in identifying and evaluating prospective targets.
Manson also conveyed particular excitement regarding the potential for additional brownfield discoveries at Renard. He underscored two key factors: “the large number of targets that remain untested and the unusually small size of the current kimberlite cluster.” This suggests that the Renard property, despite already hosting a significant mine, may still harbor numerous undiscovered kimberlites within a relatively confined area, making it a highly attractive target for continued exploration.
Promising New Claims: The Témiscaming “MET” Project in Western Québec
Stornoway also highlighted a particularly promising new development concerning recently acquired claims near the town of Témiscaming in western Québec. A thorough review of historical till sampling records from this area has strongly indicated the potential presence of diamond-bearing kimberlite, sparking considerable interest within the company’s exploration division.
Advanced Exploration and Confirmed Targets at Témiscaming
The company confirmed that follow-up till sampling at Témiscaming was successfully completed in 2017. Till sampling is an effective exploration technique where glacial till (unconsolidated sediments left by glaciers) is sampled and analyzed for kimberlitic indicator minerals (KIMs). These distinctive minerals, such as pyrope garnet, chromite, and ilmenite, are commonly found in kimberlites and serve as a reliable guide to potential diamond deposits. The presence of KIMs often indicates that a kimberlite source is located “up-ice” from the sampling site.
Further bolstering the prospectivity of the Témiscaming area, a targeted airborne geophysical survey was completed in December. Airborne geophysical surveys, using techniques such as magnetics and electromagnetics, can detect subtle variations in the Earth’s physical properties, which often correspond to buried geological features like kimberlites. Stornoway reported that “This work has confirmed geophysical targets consistent with multiple kimberlite occurrences, supported by kimberlitic indicator mineral anomalies.” This dual confirmation – both geochemical (KIMs) and geophysical – significantly de-risks the project and points towards a high probability of discovering multiple kimberlite bodies. This exciting project, formally referred to as the “MET” project, has now reached a critical juncture where it “merits drill testing,” subject to obtaining the necessary permitting and engaging in local community consultations.
The Path Forward for Stornoway and the Diamond Market
Stornoway Diamond Corporation’s ambitious 2018 exploration program represents a pivotal moment for the company. Having successfully transitioned from developer to producer with the Renard mine, Stornoway is now strategically reinvesting in its future growth. By balancing brownfield exploration at Renard to optimize existing assets and new grassroots ventures across Canada, the company is poised to strengthen its position as a significant player in the global diamond industry. The potential for new discoveries, coupled with the optimization of current resources, promises to deliver long-term value for shareholders and contribute to the supply of ethically sourced Canadian diamonds to the international market.