Stornoway: Full Underground Mine Design Capacity Achieved at Renard

Stornoway: Full Underground Mine Design Capacity Achieved at Renard

Stornoway Diamond Corporation reported yesterday that it has achieved sustained underground production at the Renard Diamond Mine “at or above the mine’s design capacity”. With this milestone, the production ramp-up of the underground mine has been completed.

“Over a 20-day period ending August 29, 2018, ore mucked and trucked to surface averaged 6,039 tonnes per day against a budgeted design capacity of 6,000 tonnes per day,” the Corporation stated. “Ore production is now being sourced from 16 active draw-points developed on 4 mining panels at the 290m level of the Renard 2 kimberlite. Ore processing during this period averaged 7,085 tonnes per day, with underground feed supplemented with ore derived from the Renard 65 open pit, as planned.”

Matt Manson, President and CEO, commented while making the announcement: “Completion of the underground mine ramp-up at Renard has not been without its challenges. However, today’s news is validation of the design of the project, the quality of the Renard ore bodies, and the dedication of the Renard mining team and contractors.”

He added: “The assisted block cave is developing well and, as expected, the grade of diamond recoveries has increased as we have moved from the initial mining panel at the margin of Renard 2 into the panels closer to the centre of the ore body. Mining and processing for the remainder of the year will be focused on ore mucked from these higher quality panels.”

Also providing an update on the balance sheet and the Corporation’s financing activities, Stornoway reiterated that it is “engaged with its lenders and key stakeholders” with regards to “certain balance sheet amendments designed to provide greater financial flexibility in its operations pending the attainment of positive free cash flow”.

The Corporation said the amendments were being made to include modifications to its existing financing agreements. “Discussions with stakeholders are ongoing, progressing positively, and at an advanced stage,” the Corporation concluded. “Stornoway expects to provide further guidance on this matter prior to the end of the current quarter.”

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