The Route 167 Extension is the road development project designed to connect the communities of Chibougamau and Mistissini to the Renard Diamond Project by way of a number of other prospective mining projects as well as the new Albanel-Temiscamie-Otish Park (see map).
Construction on the 240km long Route 167 Extension began in February of 2012, and is being undertaken in four segments, “A” to “D”.
On October 29th 2012 the newly elected Quebec Government announced it was suspending 20 infrastructure projects in Quebec for financial review, the roughly half-complete Route 167 was one of those projects.
On November 15, 2012 Stornoway announced a new agreement with Quebec designed to ensure timely road access to the Renard Diamond Project and the commencement of mine construction during 2013. Stornoway has agreed to complete segments “C” and ”D” of the Route 167 Extension as a single lane mining grade road and Québec will provide Stornoway with an unsecured credit facility of up to C$77m to complete the work, at an annual interest rate of 3.35% percent, amortized over 15 years, with a repayment schedule based upon planned commencement of commercial production at Renard.
On February 14th, 2013 as part of the new agreement with Québec, Stornoway announced that the MTQ had completed the winter road to the Renard Project, the first time since its discovery in 2001 that the project has been accessible by vehicles.
In March 2013 Stornoway announced that construction on the 97km long Renard Mine Road had commenced ahead of schedule due to favourable winter weather conditions. Good progress continued through April and May 2013, and overall completion stands at 22% with 7 of 16 permanent bridges in place. First all-season vehicle access to Renard is currently scheduled for October 2013, well within the previously announced schedule (see press release of June 3, 2013)
The cost of the Renard Mine Road has been budgeted at $77 million, including a 15% contingency. This cost is being funded through a credit facility provided to Stornoway by the Québec Ministère des Finances et de l’Économie bearing interest at the rate of 3.35% and amortized over a period of 15 years. Stornoway is also entitled to draw an additional $7.7 million bearing interest at the rate of 6.3%, for a total facility of up to $84.7 million, should extra contingencies be required. The schedule of repayment of these loans will be based on the financing and construction schedule of the Renard Diamond Project. As of June 3, 2013, Stornoway has drawn $26.3 million from the credit facility and anticipates completing construction work within the base budget.
The original release of the Certificate of Authorization for the road construction was announced on December 7, 2011 following successful public hearings held by the COMEX on August 30th and 31st, 2011 in the communities of Mistissini and Chibougamau. The Certificate for sections C and D was then transferred to Stornoway on December 17, 2013.
Year round road access to the Project will lower costs, reduce operating risk, and allow for the development of lower grade ore for eventual mine life extension. It will also make Renard the only diamond mine in Canada accessible by road vehicle all year round.
The Plan Nord
The Plan Nord is the previous Quebec Premier, Jean Charest’s plan for the development of Québec's territory north of the 49th parallel. The area included in the Plan accounted for 72% of the province of Québec, nearly 1.2 million square kilometres and was to involve $80-billion in public and private investment over the next 25 years. It was officially launched on May 9, 2011.
The Plan Nord takes a sustainable approach to energy, mining, forestry, biofood, tourism, transportation and wildlife development, as well as environmental protection and biodiversity conservation as well as support for the social development.
Under the new Quebec Government the revised scope of the Plan Nord is still being unveiled.
|Mar 27, 2013|
Stornoway Provides Construction Update On The Renard Mine Road
All-Season Road Construction Initiated Ahead of Schedule
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|Mar 12, 2013|
Stornoway Reports Fatality In Accident On The Winter Road
Stornoway Diamond Corporation (TSX-SWY) regrets to report the accidental death of a truck driver working for a transport company in an isolated incident which occurred before midnight on March 11, ...
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|Feb 14, 2013|
Stornoway Reports Arrival Of Winter Road At Renard Project Site
Stornoway Diamond Corporation (TSX-SWY) is pleased to report that the Québec Ministère des Transports (“MTQ”) has successfully completed the construction of a winter road to the Renard Diamond Proj...
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Map of the Route 167 North Extension