Stornoway Diamond Corporation

Published : January 28th, 2008

HIGH DIAMOND CONTENT CONFIRMED AT HIBOU DYKE 126 Cpht from 31 Tonne Trench Sample

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Keywords :   Canada | Contradictory | Diamond | Recovery |

January 28, 2008

HIGH Diamond CONTENT CONFIRMED AT HIBOU DYKE
126 Cpht from 31 Tonne Trench Sample

Stornoway Diamond Corporation (TSX-SWY) is pleased to provide Diamond recovery results on a 31 tonne trench sample extracted from the Hibou dyke, located at the Foxtrot Property in North Central Qu�bec. The Foxtrot Property, which includes the Renard kimberlite pipes and the Lynx-Hibou system of kimberlite dykes, is a 50:50 joint venture with SOQUEM INC. ("SOQUEM").

The new Hibou sample represents in-situ kimberlite collected in two batches during 2006 from a single trench excavated at the southern margin of the dyke. The samples were collected to resolve an apparent contradiction in Diamond content observed at Hibou between surficial boulder samples and trenched material analyzed in 2005 and 2006. The new result represents the highest Diamond content yet observed at Hibou. In total, 39.54 carats of diamonds were recovered from 31.4 tonnes (dry weight) of kimberlite, representing an overall Diamond recovery of 126 carats per hundred tonnes (cpht) for stones retained on a +1 DTC screen. The largest intact Diamond recovered was a 1.01 carat light off-colour octahedron, a photograph of which can be found on the Stornoway website at http://www.stornowaydiamonds.com/hibou-23245.jpg. Complete Diamond recovery data, following Dense Media Separation (DMS) processing and utilizing both x-ray sorter and grease table recovery circuits, are as follows:

Sample Dry Weight (tonnes) Stones (retained on +1 DTC screen) Carats (retained on +1 DTC screen) Diamond Content1 (cpht)2 Largest Diamonds (carats)
Trench T-271A-10 sample 1 21.1 2993 26.353 125 0.705, 0.68
Trench T-271A-10 sample 2 10.3 2234 13.194 128 1.01, 0.58
Total Trench T-271A-10 31.4 522 39.54 126  

1The estimated Diamond content, expressed as carats per hundred tonnes, may not be representative of the overall Diamond content of the body due to a number of factors, including location/size of the samples and processing parameters
2Carats per hundred tonnes
3Represents only stones retained on a +1.00 mm slotted DMS screen, as discussed below
4Represents only stones retained on a +0.85 mm slotted DMS screen, as discussed below
5Interpreted to be one of two broken Diamond pieces totalling 1.11 carats in weight

CEO Eira Thomas stated, "This new trench sample confirms high Diamond grades at Hibou similar to those seen at the nearby Lynx dyke system, and its shallow dip and surface outcrop make it amenable to surface stripping. As with Lynx, Hibou has the potential to provide a substantial amount of easily accessible, high grade ore to supplement the early-years production profile of a future Diamond mine based primarily on the Renard kimberlite pipes."

The Hibou dyke was discovered in 2005 and lies approximately 1.3 kilometres northwest of Renard kimberlite pipes 2, 3, 4 and 9, and 900m east of the Lynx dyke system (see location map). Previous delineation drilling suggests the dyke has a strike extent of at least 850m with a shallow dip of approximately 10 degrees. It is open down dip and along strike to the northwest. Drill intersections suggest kimberlite thicknesses of up to 3.5m, with an average thickness of approximately 2m.

During 2005, Stornoway's wholly owned subsidiary Ashton Mining of Canada Inc. ("Ashton") and its JV partner SOQUEM collected a series of samples of varying sizes from surface boulders, trenches and drill core, and performed Diamond recovery by both caustic dissolution and DMS. The caustic dissolution analysis of 353 kilograms of boulder samples and 31.5 kilograms of drill core suggested a high Diamond content of commercial size diamonds. Two DMS samples, a 4.57 tonne sample of surface boulders recovered close to the projected surface expression of the dyke, and a 9.93 tonne sample of in-situ kimberlite extracted from a trench located approximately 150m east of the boulder locality, exhibited contradictory Diamond contents of 63 cpht and 8.7 cpht respectively (Ashton Mining of Canada Inc. press release of January 16, 2006). An additional 4.52 tonne DMS sample from the same trench processed by Ashton in May 2006, and previously un-reported, yielded a Diamond content of 13.3 cpht. The two 2005 trench samples were comprised, predominantly, of a fine grained macrocrystic kimberlite occurring at the basal contact of the dyke. The 2005 boulder samples, and subsequent drill core, exhibited a coarser macrocrystic texture similar in nature to the Lynx dyke system. The two new trench samples reported in this press release were collected from a locality approximately 70m southwest of the original sampling site. These were both comprised of coarse grained material and have returned a higher Diamond content. Further work is required to determine the representative geology of the Hibou dyke and the nature of its Diamond mineralization.

Complete DMS Diamond recovery results now from the Hibou dyke are as follows:

Disclosure Date Sample Type Dry Weight (tonnes) Carats Diamond Content1 (cpht)2 Largest Diamonds (carats)
January 28, 2008 Trench T-271A-10 31.40 39.544 126 1.01, 0.706
Unreported (Ashton May 2006) Trench T-271A-01 4.52 0.605 13 0.06, 0.04
January 16, 20063 Boulders 4.57 2.875 63 0.44, 0.28
January 16, 20063 Trench T-271A-01 9.93 0.865 9 0.12, 0.11

1The estimated Diamond content, expressed as carats per hundred tonnes, may not be representative of the overall Diamond content of the body due to a number of factors, including location and size of the samples or drill holes
2Carats per hundred tonnes
33Reported by Ashton Mining of Canada Inc.
4Represents only stones retained on a +1 or greater DTC screen, as discussed below
5Represents only stones retained on a +1.18 mm square mesh screen
6Interpreted to be one of two broken Diamond pieces totalling 1.11 carats in weight

The new Hibou sample has been processed in support of a program of geological modeling and National Instrument ("NI") 43-101 compatible resource work that is being conducted by Stornoway and AMEC Americas Ltd. within the context of the Renard pre-feasibility study, the principal author of which is Agnico-Eagle Mines Ltd.

Scientific and Technical Data

Diamond results reported in this release are based on sample processing in two batches between November 2007 and January 2008. The first 21 tonnes were processed by a 10 tph DMS plant owned by Stornoway (through Ashton) and SOQUEM in joint venture, and operated by Stornoway, at the Renard project site in Qu�bec. The second 10 tonnes were processed by a 5 tph DMS plant located at Stornoway's wholly owned and operated mineralogical laboratory in North Vancouver, British Columbia. Recovery of diamonds from concentrate generated by both plants was carried out in North Vancouver. Quality assurance protocols and actual operating procedures for the processing, transport and recovery of diamonds under the Renard Project sampling programs, including arms-length security provisions, conform to industry standard Chain of Custody provisions.

Individual samples processed at Stornoway and SOQUEM's 10 tph DMS plant in Qu�bec, such as those collected during the 2007 Renard bulk sample program and the associated large tonnage sampling programs at Lynx and Hibou, were first prepared through a primary jaw crusher. To facilitate production of a heavy mineral concentrate, -20 mm material was fed directly into the DMS and +20 mm material was reduced through a secondary cone crusher set at 10 mm. Within the DMS, +6mm coarse reject "floats" were re-crushed and re-circulated. During the processing of the current sample a 1.0mm by 12.0 mm slotted screen was employed within the DMS. The use of this screen can be expected to produce a minimum stone size greater than that retained on a +1 DTC screen which is approximately equivalent to a 0.85 mm square mesh screen. However, the bottom cut-off screen sizes used on the DMS will result in under-recovery of smaller diamonds and will not allow a direct comparison with previously reported Diamond contents.

The sample processed at Stornoway's 5 tph DMS plant in North Vancouver was prepared through a primary jaw crusher, with -14 mm material fed directly into the 5 tph DMS. The +14 mm material was reduced through secondary roll crushing set at 10 mm and within the DMS, +4.0 mm floats are re-crushed and re-circulated. During the processing, a 0.85 mm by 14 mm slotted screen was employed within the DMS, and as a consequence there will be a better recovery of smaller diamonds than from the 10 tph DMS plant.

Resultant DMS concentrates from both the 10 tph and 5 tph DMS plants were then processed twice through x-ray sorter equipment to generate a final concentrate which was hand sorted to extract diamonds. A grease table finish was used to recover diamonds from all x-ray sorter rejects. As part of Stornoway's ongoing QA/QC program, DMS tails, concentrate residues and other materials are also subject to audit. Any significant changes to the recovered Diamond grades provided above will be reported when available. The Renard bulk sample program is managed by Dave Skelton, P.Geol., Senior Project Manager. Stornoway's Diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol, Vice President, Exploration, a Qualified Person under NI 43-101.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading Diamond exploration and development companies, involved in the discovery of over 155 kimberlites in six Canadian Diamond districts. The Company benefits from a diversified Diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the Diamond "pipeline" from exploration to marketing.

SOQUEM INC.

SOQUEM is a wholly-owned subsidiary of Soci�t� g�n�rale de financement du Qu�bec ("SGF"). The SGF, the Qu�bec industrial and financial holding company, has as its mission to undertake economic development projects in the industrial sector in cooperation with partners and in compliance with the economic development policies of the Government of Qu�bec.

On behalf of the Board
STORNOWAY Diamond CORPORATION
/s/ "Eira Thomas"
Eira Thomas
Chief Executive Officer

For further information, please contact Nick Thomas , Investor Relations Manager at 604.331.2271 or 1.877.331.2232

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Stornoway Diamond Corporation

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CODE : SWY.TO
ISIN : CA86222Q8065
CUSIP : 86222Q806
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Stornoway Diamond is an exploration gold and copper company based in Canada.

Stornoway Diamond develops gold, copper, diamonds and nickel in Canada, and holds various exploration projects in Botswana and in Canada.

Its main asset in development is RENARD (FOXTROT) in Canada and its main exploration properties are RAVEN, CHURCHILL, KINGORA, LDG, DARING LAKE, JEWEL, STARFISH, WALES ISLAND, SCEPTRE AND TIARA, HAMMER, QILALUGAQ, PORTAGE MINE, MELVILLE PENIN. and MELVILLE PENINSULA (AVIAT PROJECT) in Canada.

Stornoway Diamond is listed in Canada. Its market capitalisation is CA$ 16.6 millions as of today (US$ 12.6 millions, € 11.4 millions).

Its stock quote reached its highest recent level on May 14, 2004 at CA$ 9.80, and its lowest recent point on September 06, 2019 at CA$ 0.02.

Stornoway Diamond has 828 659 968 shares outstanding.

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AU$ 0.10+8.25%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.03-3.79%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 20.35+0.54%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.05+0.00%Trend Power :