The huge cutter rig deployed by Rio Tinto to excavate ten massive excavation trenches at Fort à la Corne. (Submitted photo/Rio Tinto)

By Glenn Hicks

Exploration

Drilling underway ‘to assess future open pit design’ at Project Falcon: Star Diamond

Jan 19, 2021 | 5:08 PM

Despite their rocky relationship, the partners on the Fort à la Corne (Project Falcon) diamond exploration project 60 kilometres east of Prince Albert appear to be moving forward with what one analyst calls the next logical step towards a possible mining operation.

Star Diamond Corp., which owns the rights to the exploration properties, announced Tuesday that mining giant Rio Tinto has started an eight-hole geotechnical drilling program on and in proximity to the Orion North Kimberlite deposits.

Star Diamond said in a media release that it had been advised the aim of this drilling is “to investigate the geotechnical properties of the overburden, kimberlite and host rock sediments and this information would be used for future open pit design.”

Recently, the company announced diamonds had been recovered through bulk sampling from the tenth and final huge trench excavated by Rio Tinto in 2019. Although large and valuable diamonds have been recovered in the trenches in line with Star Diamond’s expectations, a full report on the bulk samples from the ten massive holes has yet to be done.

The partners are embroiled in court action over various issues including concerns raised by Star Diamond about undue breakage of diamonds because of Rio Tinto’s extraction and sampling processes, something Rio Tinto is contesting.

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Kimberlite extracted from ten deep trenches has resulted in the discovery of some large, high value diamonds but Star Diamond Corp. says a full report still needs to be completed. (Ian Gustafson/paNOW Staff)

paNOW reached out to both Star Diamond and Rio Tinto for comment on today’s announcement of the geotech drilling but neither immediately responded. However, an independent diamond analyst who has kept a close eye on the project sees things as a positive.

“It sounds as if they’re still able to advance the project,” Paul Zimnisky told paNOW from New York on hearing the news of the start of the latest drilling. “I think this is the next logical step in this process and it’s a sign we’re in a serious stage of development of this project.”

Zimnisky added it made sense for Rio Tinto – one of the biggest diversified mining companies in the world – to have more irons in the fire than just their 60 per cent stake in the Diavik diamond mine in North West Territories. Rio Tinto shuttered their Argyle mine in Australia in November after a 37-year run that produced 865 million carats of rough diamonds. An independent Preliminary Economic Analysis (PEA) of the Fort à la Corne project estimated 66 million carats of diamonds could be recovered in a surface mine over a 38-year project lifespan.

Having closed their Argyle mine in Australia in November, Rio Tinto currently has a stake in just the Diavik mine (pictured) in NWT. (Screengrab video/riotinto.com)

“Right now [Rio Tinto] are kind of in-between with just that one stake in that one mine,” Zimnisky said, while also pointing to what may be good global market timing surrounding further progress at Project Falcon.

“Diamond prices have just gone up five per cent, probably their biggest increase in five years,” he said, noting the commodity has weathered the COVID pandemic well.

“I think people are buying diamonds because they aren’t spending money on travelling or on going to experiential events as they did before the pandemic. I think some of that discretionary income is being spent on material items like diamonds and I think that’s helped the industry.”

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glenn.hicks@jpbg.ca

On Twitter:@princealbertnow