Star Diamond is showcasing diamonds on social media in February. (Star Diamond/Facebook)

By Doug Lett

Star Diamond

Star Diamond showcasing gems on social media

Feb 22, 2023 | 3:59 PM

Star Diamond is showcasing a different diamond every day on social media, throughout the month of February.

The company is doing it to remind people the company has already found tens of thousands of diamonds at its Fort a la Corne diamond site, about 60 kilometers east of Prince Albert.

“Tons of feedback, people are going like, oh my God, where did you get these from? This is what really kills me,” said interim CEO Ewan Mason. “We got them out of the ground. I think most people don’t have any clue. And a new generation of investors needs to know that,” he said.

One of the diamonds Star Diamond is highlighting in February. (Star Diamond/Facebook)

Efforts have been underway to develop a diamond mine in the Fort a la Corne area for several decades. Star Diamond had partnered with mining giant Rio Tinto, but Rio Tinto has signalled it is winding down its involvement.

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Which leads to Star Diamond looking for new investors and potential partners.

“So that’s where this whole February Diamond Month campaign came from. You know, let’s appeal to a new generation of shareholders,” Mason said. “And hopefully there will be people who will be able to see past this logjam in project development to understand where we’re going,” he said.

Another company initiative is heading to a major mining trade show in Toronto March 5-8, with more diamonds, to hopefully turn some heads.

“We’re showing up with diamonds, not just cut and polished diamonds, but we’ve actually mounted a whole suite of diamonds now [with] bracelets and rings. We want to show everybody what the end game is,” he said.

However, the company faces challenges. Last month, New York based diamond analyst Paul Zimnisky told northeastNOW that inflation has ramped up the cost of building a mine, while diamond prices dropped slightly in 2022.

“If prices rise to a level that materially changes the economics of the project, I think that could be, you know, a catalyst for a renewed interest,” Zimnisky said. At the same time, he said the Star Diamond project is huge, and potentially a “world class” mine.

University of Regina Economics Professor Jason Childs added another factor is changing demand. He said while industrial demand for diamonds is going up, consumers are not as interested in buying diamonds as earlier generations.

“That’s not the game that’s being played by younger generations anymore. And so you’re seeing a move away from those kinds of status goods and displays of wealth to other forms,” he said.

However, Childs added development of a mine would be a “game changer” for employment in the region.

Mason is hoping discussions with Rio Tinto will lead to Star Diamond getting back control of the project, and then moving forward.

“Hopefully 2023 is going to be a much better year than the previous three years,” said Mason.

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doug.lett@pattisonmedia.com

Twitter: @DougLettSK