Rio Tinto’s huge Trench Cutting Sampling Rig during drilling earlier this year. (submitted photo/Rio Tinto)

By Glenn Hicks

diamond opportunities

Rio Tinto to exercise all options on Fort à la Corne exploration

Nov 15, 2019 | 3:50 PM

Star Diamond Corporation says a decision by Rio Tinto Exploration Canada (RTEC) to exercise its further three options on exploring the Fort à la Corne site east of Prince Albert is a very positive sign.

The company announced Friday they received notice from the mining giant that it intends to exercise all four options under the Option to Joint Venture Agreement entered into in 2017.

“It’s exciting news because it comes very early in the stage of Rio Tinto’s involvement with us,” Senior VP of Exploration and Development at Star Diamond, George Reed told paNOW.

“It’s just another very positive sign they are committed to working toward the final evaluation and ultimately, we hope, the development of a mine in the Fort à la Corne.”

Reed said the first option or phase of the exploration project – the drilling of 10 sample holes – had been completed, and the sample processing plant would be up and running “very soon” with the aim of assessing the diamonds over the winter months. He said RTEC would spend $18.5 million on the first phase and the same again on each of the second and third options, commencing next year. These involve a total of 20 more drill sample holes.

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The fourth phase involves a determination on whether a mine could go ahead and would also see Rio Tinto take a majority stake in the project.

“The fourth option – the completion of a feasibility study – would bring Rio Tinto up to their 60 per cent,” Reed said.

In an email to paNOW, RTEC said in part, today’s announcement did not mean the project was advancing to development.

Over the next few years, Rio Tinto will continue to conduct significant exploration study work and the results will be used to decide if the project will advance to a pre-feasibility stage. Completing the exploration work takes significant time and effort, and we don’t know yet if this work will result in the development of a mine.

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glenn.hicks@jpbg.ca

On Twitter:@princealbertnow