Stornoway’s principal business is the development of its 100% owned Renard Diamond Project, on schedule to becoming Québec’s first diamond mine. Now under construction following the completion of a C$946m project financing transaction in July 2014, the plant expects to take delivery of first ore in the second half of 2016, with commercial production scheduled for the second quarter of 2017.

Renard is one of only a few new diamond projects under development globally. Once in full production, the project will produce an average of 1.6 million carats per year over an initial 11-year mine life, representing approximately 2% of global supply. The potential exists to extend the mine life through the development of the project’s substantial Mineral Resource upside.

The Renard Diamond Project is located near the Otish Mountains in the James Bay region of north-central Québec, approximately 800 km north of Montréal and approximately 400 km north of Chibougamau. Discovered in 2001, the site can now be accessed by road from Chibougamau via the Route 167 extension/Renard Mine Road, newly constructed by Stornoway and the Province of Québec under the auspices of Québec’s Plan Nord. Air access is by way of the Renard airport located 8 km south of the project site. Renard is being developed under the terms of the Mecheshoo Agreement signed in March 2012 between Stornoway, the Grand Council of the Crees (Eyou Itschee), and the Cree Nation of Mistissini, as well as Partnership Agreements signed in July 2012 between Stornoway and the communities of Chapais and Chibougamau. The project will employ more than 500 people during its construction and operation.

Key Project Highlights:

Mineral Reserve (as at Jan 28, 2013): 23.79m tonnes 17.95m carats
Average diamond price (Mineral Reserve, March 2014 terms): US$190/carat
Initial mine life based on Mineral Reserve 11 years
Production rate 2.2m tonnes/yr 1.6m carats/yr
Initial capital cost (1) $811 million
Operating cost (based on LNG FS Oct 21, 2013) C$53.84/tonne
Employment during construction (persons)
Annual operating cost (C$)
Estimated percentage of purchasing in region
Employment during operation (persons)
Estimated taxes and royalties over 11-year mine life
Date of construction commencement July 10, 2014
Scheduled plant commissioning 2H 2016
Scheduled date of commercial production 2Q 2017
Mineral Resource (as at July 23, 2013)(2)
Indicated 35.45m tonnes 27.09m carats
Inferred 29.67m tonnes 16.85m carats
Target for further exploration ("TFFE"; as at July 23, 2013)(2)
54.6-4.9m tonnes 25.7-47.8m carats
(1) Includes $62 million in contingencies and $57 million in capital escalation allowance
(2) [Add disclaimer language about Mineral Resources and TFFE]