Stornoway Diamond shares soar on one of the "most valuable" Renard discoveries yet Tue 1:31 pm by Deborah Bacal

The Montreal-based company said today that during the ongoing processing of the Renard 65 bulk sample at its North Vancouver diamond recovery facility, a 9.78 carat diamond was recovered. With a preliminary valuation of $7,000 per carat, the stone is one of the most valuable yet found on the property.

Shares in Stornoway Diamond Corp (TSE:SWY) rallied more than 21 per cent Tuesday, after the company discovered what it called one of the most valuable stones ever found at the Renard diamond project in Quebec.

Its stock was lately up more than 21 per cent, or 11 cents, changing hands at 62 cents this afternoon in Toronto.

The Montreal-based company said today that during the ongoing processing of the Renard 65 bulk sample at its North Vancouver diamond recovery facility, a 9.78 carat diamond was recovered. With a preliminary valuation of $7,000 per carat, the stone is one of the most valuable yet found on the property.

The 9.78 carat stone is an unbroken white octahedral gem, with the next largest diamond in the sample being 6.41 carats in size, and also a white octahedral gem with a preliminary valuation of $4,700 per carat.

Stornoway said that around one third of the bulk sample's heavy mineral concentrate has now been processed, with a total of 11 diamonds extracted that are larger than 1.8 carats in size. Sample processing is continuing, the miner added.

"Our expectation for the Renard 65 bulk sample was that, as with the other Renard kimberlites, we would have recovered a number of high quality large stones given the size of the sample and its likely diamond size distribution," said president and CEO, Matt Manson.

"To have obtained two such large diamonds so early on, both of exceptional quality, is highly encouraging."

The aim of the sampling program is to recover a parcel of diamonds large enough for valuation purposes, with a view to convert inferred mineral resources to the indicated category, and possibly to mineral reserve.

The field portion of the bulk sample program wrapped up in November, and final diamond recovery results are expected in the first quarter of next year.

Given the estimated diamond content at the sampling site, the company said it is expected that around 1,000 carats of diamonds will be recovered, which will be sent to Antwerp, Belgium for valuation.

Since the project's discovery in 2011, it has been marked by the presence of large, high value stones. The most celebrated of these was a Renard 65 white octahedral gem of at least 4 carats discovered in drill core in 2003.

In all, seven stones have now been recovered from Renard, with values in excess of US$4,000 per carat, Stornoway noted.

The project is located about 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of North-Central Québec. A feasibility study released by the company late last year showed potential for the project to become a significant producer of high value rough diamonds.

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 was estimated at C$802 million, with a life of mine operating cost of C$54.71 per tonne giving a 68% operating margin over an initial 11 year mine life.