Stornoway Diamond Corporation providing an update on the “operational readiness” of the Renard Diamond Project said that first diamond production is expected later this year, earlier than was originally thought.

“At the end of May overall construction progress stood at 96% compared to the recently re-baselined plan of 90% (and the initial plan of 82%),” Stornoway revealed in a press note yesterday. “All major equipment and control systems have been installed in the project’s diamond process plant, primary crusher and processed kimberlite load-out facility, and Pre-Operational Verification (POV) procedures are well advanced.”

Other ancillary infrastructure like the project’s power plant, water treatment facility and maintenance facilities are also fully operational. “All critical path activities continue well within the planned schedule for first ore delivered to the plant by the end of September and commercial production by the end of December,” the Company said.

Stornoway reported that by the end of May, a total of 8.9 million tonnes of overburden, waste rock and ore had been extracted from the Renard 2-Renard 3 and Renard 65 open pits. This, the Company said represented a performance of 101% against plan. “This includes 697,895 tonnes of ore, at 148% of plan. Delivery of ore to the stockpiles is now being achieved at a rate sufficient to commence the project’s planned production ramp-up,” the Company stated.

Reporting that there has been no recurrence of the localised water inflow issue that slowed progress at the start of the year, the Company said development of the ramp for the underground mine stood at 1,635 meters at the end of May, or 82% of plan; compared to 74% at the end of March. “Progress on the ramp during April and May was 98% and 132% of plan respectively,” the Company said. 

Stornoway plans to mobilise a second underground development team in the third quarter of this year – a move originally scheduled for 2017.  This is “to ensure the completion of the underground mine on schedule”.

The Company confirmed that the forecast cost to complete the project remains within the re-baselined capital budget of C$ 775 million.