Stornoway Diamond Corporation Reports Production and Sales Results of Renard Diamond Mine for the First Quarter Ended March 31, 2018; Provides Production Guidance for the Year 2018
First quarter mine production was 285,851 carats recovered from the processing of 562,520 tonnes of ore at an attributable grade of 51 carats per hundred tonnes ("cpht"). During the quarter, mining in the Renard 2-Renard 3 open pit was hampered by poor weather conditions which restricted mining access and impacted equipment availability. In addition, approximately 55,000 tonnes of high grade Renard 2 ore which was scheduled for mining at the base of the pit could not be recovered due to unsafe working conditions adjacent to the west pit wall. This resulted in a higher proportion of low grade stockpile material being processed during the quarter than was planned, with a commensurate reduction in carat recoveries. In addition, the extreme weather conditions resulted in lower than expected plant availability, as ore froze in feed-bins. Processing rates in the quarter averaged 6,250 tonnes per day compared to an annual plan of 7,000 tonnes per day. By the end of the quarter, open pit mining at Renard 2 had been completed, and a progressively higher proportion of processed ore was being derived from the Renard 2 underground mine. Processing in March averaged 6,750 tonnes per day.
Higher than budgeted carat production in the remainder of the year will be required to achieve Stornoway's full year 2018 production guidance of 1.6 million carats produced and 1.6 million carats sold.