Stornoway Diamond Corporation (TSX:SWY) is pleased to announce that
it has received the global Certificate of Authorization for the
Renard Diamond Project from the Quebec Ministere du Developpement
Durable, de l'Environnement,de la Faune et des Parcs ("MDDEFP").
The Certificate of Authorization represents the principal
regulatory approval required to commence mine construction, and has
been issued by the Quebec regulators following more than 2 years of
formal environmental study, community engagement and public
consultation under the terms of the James Bay and Northern Quebec
Agreement (the "JBNQA").
Matt Manson, Stornoway's President and CEO commented: "Today's
news represents the most significant milestone in the development
of the Renard Diamond Project achieved to date. It comes just 11
months since the filing of the project's Environmental and Social
Impact Assessment, an accomplishment that reflects the high quality
of the work undertaken by Stornoway's project team and partners,
and the broad support that the project enjoys within the nearby
communities of Mistissini, Chibougamau and Chapais. The MDDEFP
global Certificate of Authorization is the most important element
of the permitting process for mining projects in Quebec. As of
today we are able to say that the principal regulatory hurdle for
the Renard Diamond Project is behind us."
The Renard project falls under the social and environmental
protection regimes of both the JBNQA and the Canadian Environmental
Assessment Act ("CEAA"). Successful public hearings on the project
were held by the federal Canadian government and Quebec in June and
August of this year respectively. Stornoway expects to receive
regulatory authorizations from the Fisheries and Oceans Canada and
Environment Canada shortly, following the conclusion of the federal
government's evaluation of the project under the CEAA. The Quebec
Certificate of Authorization has been issued by the MDDEFP upon the
recommendation of the review committee of the JBNQA ("COMEX"). The
project's Mining Lease was issued by the Quebec Ministere des
Ressources naturelles in October.
The Renard Environmental and Social Impact Assessment, as well
as the project's Environmental Baseline Study and Restoration Plan,
are available in their entirety on Stornoway's website
(www.stornowaydiamonds.com/renard/esia).
About the Renard Diamond Project
The Renard Diamond Project is located approximately 250 km north
of the Cree community of Mistissini and 350 km north of Chibougamau
in the James Bay region of North-Central Quebec. In November 2011,
Stornoway released the results of a Feasibility Study for Renard
that highlighted the potential of the project to become a
significant producer of high value rough diamonds over a long mine
life. NI 43-101 compliant 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 stands at an
estimated C$802 million, with a life of mine operating cost of
C$54.71/tonne giving a 68% operating margin over an initial 11 year
mine life. Readers are referred to the technical report dated
December 29, 2011 in respect of the Renard Diamond Project for
further details and assumptions relating to the project.
About Stornoway Diamond Corporation
Stornoway is a leading Canadian diamond exploration and
development company listed on the Toronto Stock Exchange under the
symbol SWY. Our flagship asset is the 100% owned Renard Diamond
Project, on track to becoming Quebec's first diamond mine.
Stornoway also maintains an active diamond exploration program with
both advanced and grassroots programs in the most prospective
regions of Canada. Stornoway is a growth oriented company with a
world class asset, in one of the world's best mining jurisdictions,
in one of the world's great mining businesses.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
Matt Manson, President and Chief Executive Officer
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. This information and
these statements, referred to herein as "forward-looking
statements", are made as of the date of this press release and the
Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
law.
Forward-looking statements relate to future events or future
performance and reflect current expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to: (i) the amount of mineral resources and exploration
targets; (ii) the amount of future production over any period;
(iii) net present value and internal rates of return of the mining
operation; (iv) assumptions relating to capital costs, operating
costs and other cost metrics set out in the Feasibility Study; (v)
assumptions relating to gross revenues, operating cash flow and
other revenue metrics set out in the Feasibility Study; (vi)
assumptions relating to recovered grade, average ore recovery and
other mining parameters set out in the Feasibility Study; (vii)
mine expansion potential and expected mine life; (viii) expected
time frames for completion of permitting and regulatory approvals
and making a production decision; (ix) future exploration plans;
(x) future market prices for rough diamonds; and (xi) sources of
and anticipated financing requirements. Any statements that express
or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or
phrases such as "expects", "anticipates", "plans", "projects",
"estimates", "assumes", "intends", "strategy", "goals",
"objectives" or variations thereof or stating that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements.
Forward-looking statements are made based upon certain
assumptions by Stornoway or its consultants and other important
factors that, if untrue, could cause the actual results,
performances or achievements of Stornoway to be materially
different from future results, performances or achievements
expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which Stornoway
will operate in the future, including the price of diamonds,
anticipated costs and ability to achieve goals. Certain important
factors that could cause actual results, performances or
achievements to differ materially from those in the forward-looking
statements include, but are not limited to: (i) estimated approval
date of the Environmental and Social Impact Assessment; (ii)
required capital investment and estimated workforce requirements;
(iii) estimates of net present value and internal rates of return;
(iv) receipt of regulatory approvals on acceptable terms within
commonly experienced time frames; (v) the assumption that a
production decision will be made, and that decision will be
positive; (vi) anticipated timelines for the commencement of mine
production; (vii) anticipated timelines related to the Route 167
extension and the impact on the development schedule at Renard;
(viii) anticipated timelines for community consultations and the
impact of those consultations on the regulatory approval process;
(ix) market prices for rough diamonds and the potential impact on
the Renard Project's value; and (x) future exploration plans and
objectives.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. We caution readers not to place
undue reliance on these forward-looking statements as a number of
important risk factors could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates, assumptions and intentions expressed in
such forward-looking statements. These risk factors may be
generally stated as the risk that the assumptions and estimates
expressed above do not occur, including the assumption in many
forward-looking statements that other forward-looking statements
will be correct, but specifically include, without limitation, (i)
risks relating to variations in the grade, kimberlite lithologies
and country rock content within the material identified as mineral
resources from that predicted; (ii) variations in rates of recovery
and breakage; (iii) the greater uncertainty of exploration targets;
(iv) developments in world diamond markets; (v) slower increases in
diamond valuations than assumed; (vi) risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar; (vii) increases in the costs of proposed capital
and operating expenditures; (viii) increases in financing costs or
adverse changes to the terms of available financing if any; (ix)
tax rates or royalties being greater than assumed; (x) results of
exploration in areas of potential expansion of resources; (xi)
changes in development or mining plans due to changes in other
factors or exploration results of Stornoway; (xii) changes in
project parameters as plans continue to be refined; (xiii) risks
relating to receipt of regulatory approvals or the implementation
of the existing Impact and Benefits Agreement with aboriginal
communities; (xiv) the effects of competition in the markets in
which Stornoway operates; (xv) operational and infrastructure
risks; and (xvi) the additional risks described in Stornoway's most
recently filed Annual Information Form, annual and interim
MD&A, and Stornoway's anticipation of and success in managing
the foregoing risks. Stornoway cautions that the foregoing list of
factors that may affect future results is not exhaustive.
When relying on our forward-looking statements to make decisions
with respect to Stornoway, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Stornoway does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by Stornoway or on our behalf, except as
required by law.
Contacts: Stornoway Diamond Corporation Matt Manson President
and CEO 416-304-1026 Stornoway Diamond Corporation Nick Thomas
Manager Investor Relations 604-983-7754 or Toll Free:
1-877-331-2232 Stornoway Diamond Corporation M. Ghislain Poirier
Vice-president Affaires publiques
418-780-3938gpoirier@stornowaydiamonds.com Stornoway Diamond
Corporationinfo@stornowaydiamonds.com www.stornowaydiamonds.com