Development work at the Renard 3 pit

Development work at the Renard 3 pit

Stornoway Diamonds
Canadian diamond developer Stornoway Diamond Corp. has updated its mineral resource at Renard as construction of Quebec's first diamond mine continues.

Highlights include:

  • A 16% increase in the Indicated Mineral Resources of Renard 2 to 21.6 million carats achieved through the conversion of Inferred Mineral Resources to 700 meters depth.
  • An 11% increase in the total Indicated Mineral Resources of the project (inclusive of the Mineral Reserve) to 30.2 million carats
  • New Inferred Mineral Resources at Renard 2 defined to 850 meters depth.
  • The inclusion of over 4 million tonnes of lower grade Renard 2 Country Rock Breccia ("CRB") material in the Indicated Mineral Resource category for the first time.
  • Substantial new exploration potential at Renard 2 and Renard 3 identified to 1,250 meters depth, where both kimberlites are interpreted to retain sizeable widths and remain open.

"As we explore these ore bodies at depth, we are delineating new Mineral Resources that represent potential mine production well past the current 11 year Mineral Reserve based mine life," said Stornoway president and CEO Matt Manson.

The resource increase will be incorporated into an updated mine plan expected in the second quarter of 2016. Commercial production is scheduled for the second quarter of 2017.

Stornoway turned some heads in July 2014 when it landed $946-million in project financing - including a diamond stream and convertible debentures - from partners including Orion Mine Finance and the Caisse de depot et placement du Quebec.

The stock is at 73 cents, up about 22% in the past year, for a market capitalization of about $535 million.

Renard isn't the only Canadian diamond mine expected to start producing gems in the next couple of years. Production at Gahcho Kue in Northwest Territories, a joint venture between Mountain Province Diamonds and De Beers that will be the world's largest new diamond mine when it opens, is projected for Q3 2016.

NR: Stornoway announces updated mineral resource estimate

Amerigo Resources
Ross Beaty-backed Amerigo Resources has announced the startup of an expansion at its Chilean tailings operation that will see its annual production rise to 70 million pounds of copper, from about 40 million lbs currently.

Amerigo processes tailings from Codelco's El Teniente mine, the world's largest underground copper operation. The new Cauquenes expansion is processing historic tailings from the copper mine, at a rate of 30,000 tonnes per day initially and 60,000 tpd in Q4 of this year.

The expansion will also lower Amerigo's cash costs from over US$2/lb to "significantly less than $2/lb," according to Amerigo's chairman and CEO Klaus Zeitler.

With copper prices continuing to tank, Amerigo shares are trading near 52-week lows. The stock got a bit of boost in early trading, up about 6% to 24.5 cents.

Zeitler was chairman of Rio Alto Mining when it was taken over by Tahoe Resources earlier this year and now sits on the Tahoe board.

Ross Beaty isn't Amerigo's only big player: Geologic Resource Partners is also a 10% plus shareholder.

NR: Amerigo announces successful startup of Phase 1 of Cauquenes expansion

Equitas Resources
Newfoundland exploration play Equitas Resources has begun drilling at its Garland property in the Voisey's Bay district of Labrador.

The company also announced this morning it has picked up additional claims to the west of Garland, which covers more than 23,000 hectares.

Initial drilling will focus on electromagnetic anomalies identified by Equitas, which is helmed by president Kyler Hardy.

"After initial slow start-up due to poor weather conditions, we are executing our plan to fully test the conductivity responses this year," said Everett Makela, Equitas's VP exploration.

Equitas shares have more than doubled this year, to 19 cents, as the company raised money ahead of drilling.

NR: Equitas provides update on Garland property

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