Stornoway Diamond Corporation

Published : March 09th, 2009

Provides Renard Drilling Update: Renard 2 Kimberlite Greatly Expanded

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March 9, 2009

Stornoway Provides Renard Drilling Update:
Renard 2 Kimberlite Greatly Expanded

Stornoway Diamond Corporation (TSX-SWY) is pleased to announce the completion of three deep delineation drill holes on the Renard 2 kimberlite pipe, 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 holes were drilled as part of an ongoing resource expansion and optimization program at Renard aimed at testing for the presence of additional mineral resources within the deeper and more poorly delineated portions of the Renard 2 and Renard 3 kimberlite pipes.

All three holes drilled to date have successfully extended the dimensions of the Renard 2 kimberlite pipe at depth, in comparison to the geological model used in the recent NI 43-101 compliant mineral resource statement (Stornoway Press Release dated December 15, 2008). One hole in particular, R2-55, has returned an intersection of kimberlite 176 meters longer than expected from previous geological modeling. The implied true horizontal width of this newly discovered zone of kimberlite almost triples the north-south dimension of the Renard 2 pipe to 150 meters at a depth of 500 meters below surface. Drill hole results from the three completed holes are as follows:

Hole ID

Azimuth (degree)

Dip (degree)

Length (meters)

Kimberlite Contact (meters down hole)

 

Upper

Lower

R2-54

175

-69

453

Expected

164

425

Actual

176

433

Difference1

-12

+8

R2-55

354

-63.5

650

Expected

120

395

Actual

120

571

Difference1

0

+176

R2-56

156

-66

411

Expected

152

312

Actual

109

392

Difference1,2,3

+43

+80

 

 

 

 

 

 

 

1 A negative ("-") difference indicates a decrease in geological model size. A positive (?+?) indicates an increase in model size.
Differences between expected and actual contacts have a smaller influence on the shape of the geological model at the top
of the pipe than at the bottom owing to the amount of geological control already existing.

2 Includes a 17 meter intersection of Country Rock Breccia with Kimberlite (?CRB+K?) between 117 and 134 meters.

3 Includes a 29 meter intersection of Country Rock Breccia with Kimberlite (?CRB+K?) between 331 and 360 meters.

Matt Manson, President and CEO commented: ?The thick new intersection of kimberlite returned by the R2-55 drill hole is an impressive result. It implies a substantial amount of new kimberlite in the lower section of the Renard 2 pipe, all within the scope of the existing underground mine design contained within the Renard Preliminary Assessment. We anticipate that the impact of this new discovery on the economics of the project will be positive and significant.?

R2-55 was designed to test the nature of the northern contact of the Renard 2 kimberlite within a 300 meter vertical section of the geological model (270 to 570 meters below surface) that was unconstrained by previous drilling (see illustration below). The discovery of some additional kimberlite was anticipated. However, the very long intersection, and the existing drill hole pattern in this area, are consistent with a greatly enlarged northern limb of the pipe that may extend from 570 meters up to 200 meters below surface, where kimberlite intersections not currently incorporated into the present geological model and mineral resource statement have been observed (the Renard 2 ?Bulge?). The new intersection also raises the possibility of substantial quantities of kimberlite below 570 meters depth.

Preliminary field logging indicates that the kimberlite intersected in this new area is comprised of Brown Transitional Kimberlite Breccia (?Kimb2b?), Hypabyssal Kimberlite Breccia (?HKB?) and Blue Tuffisitic Kimberlite Breccia (?Kimb2a?). The first two of these units are dominant and, as summarized in the recent NI 43-101 Report, are also the two most highly diamondiferous units within the Renard 2 kimberlite.

Illustration: Three Dimensional Renard 2 Geological Model (looking east), as utilized in the December 2008 NI 43-101 compliant mineral resource statement, showing the relative location of the new drill holes discussed above, kimberlite intersections not incorporated in the present model and past drilling. Surface at about 510m above sea level with vertical scale as shown. Kimberlite intersections in green, brecciated country rock +/- kimberlite in pink, and country rock in white.
Click image for enlarged version.


Given the potential size of the new discovery zone at Renard 2, additional delineation drilling in this area will be undertaken prior to the completion of the current winter program. Drilling of three deep delineation drill holes is also underway at the Renard 3 kimberlite pipe. It is expected that the results of the current winter drill program, together with drilling scheduled for the summer, will be incorporated into a revised NI 43-101 mineral resource statement for the project to be completed prior to the end of the year.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading Diamond exploration and development companies, involved in the discovery of over 200 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. The Renard Diamond Project is managed by Dave Skelton, P. Geol. (AB/QC), Vice President, Project Development. Mr Skelton is a Qualified Person under NI 43-101 and has reviewed the contents of this press release.

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/ ?Matt Manson?
Matt Manson
President and Chief Executive Officer

For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754 or toll free at 1-877-331-2232
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **

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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$ 0.01.

Stornoway Diamond has 828 659 968 shares outstanding.

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