Star Diamond (TSX: DIAM), formerly Shore Gold, has received approval for its Star-Orion South diamond project from Saskatchewan's environment minister. The project is located near Fort ? la Corne, in the central part of the province.
The federal environment assessment agency announced its positive decision in December 2014. Additional permit approvals from the provincial and certain municipalities are required.
Star's updated preliminary economic assessment on the project from earlier this year estimates that 66 million carats of diamonds could be recovered over a 38-year project life. After taxes, the net present value at a 7% discount rate is $2 billion and the internal rate of return is 19%.
Star Diamond recently granted an option to earn up to a 60% interest to Rio Tinto (NYSE: RIO; LSE: RIO) The first stage of the agreement requires Rio Tinto to complete a 10-hole bulk sampling program or $18.5 million. The major began drilling its first bulk-sample hole in October. The option agreement covers all of Star's Fort ? la Corne properties include Star-Orion South, which Rio refers to as project FalCon.
- This article was first published in the November 2018 issue of Diamonds in Canada. (With files from www.canadianminingjournal.com)