The Saskatchewan Ministry of Environment has approved Star Diamond Corp’s Star – Orion South diamond project, located in the Fort à la Corne diamond district of central Saskatchewan, Canada, on mineral dispositions held 100% by Star Diamond. The Environment Minister of Saskatchewan Dustin Duncan announced approval for the Project under The Environmental Assessment Act, indicating the “The Star-Orion South Diamond Mine is a major development with the potential to bring jobs to the area and diversify Saskatchewan’s economy”.
Kenneth E. MacNeill, President and CEO states: “This approval, alongside the previous positive Federal decision, marks a major milestone towards the development of a diamond mine in Saskatchewan. We have previously demonstrated that the proposed Star – Orion South project can be successfully constructed and operated and are very pleased that it has now received positive federal and provincial environmental decisions. This milestone is the result of the significant work and effort of the Ministry, our technical team and consultants, and represents our commitment to our stakeholders and the community surrounding the project. As illustrated by the PEA, the project has the potential to generate billions of dollars of corporate and municipal taxes and royalties, while also providing direct employment for hundreds of people throughout the construction phase and some 700 people continuously over its 38 year mine life.”
Star Diamond’s Star – Orion South diamond project is located in central Saskatchewan some 60 km east of the city of Prince Albert. The project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.
The Corporation recently announced the positive results of the PEA on the project. This estimates that 66 Mct of diamonds could be recovered in a surface mine over a 38-year project life, with an NPV (7%) of $2.0 billion after tax, an IRR of 19% and an after-tax payback period of 3.4 years after the commencement of diamond production.
