Canadian miner Stornoway Diamond Corporation reported that there was solid progress in the construction mobilisation at the Renard Diamond Project which was in line with planned schedule and budget. The company remains on course for the first ore to be in the plant in the second half of calendar 2016 and for commercial production in the second quarter of calendar 2017.

Net earnings for the three and six months ended October 31, 2014 totaled $11.7 million and $0.2 million respectively, and include other income of $12.7 million and $4.6 million, respectively.  Net earnings were impacted by several items not reflective of Stornoway’s underlying operating performance.

During the quarter, the company reported that overall construction progress stood at 10% compared to a planned 9%, and 68% for scheduled 2014 activities compared to a planned 62%. Work progress under Stornoway's EPCM contract stood at 11% compared to a planned 14%.

Construction of the major civil works at the project site, begun in the first quarter, were 88% complete at the end of the second quarter and are expected to be substantially complete by year end.

Matt Manson, President and CEO of Stornoway stated, “Both the resource drilling and the diamond plant design optimisation completed during the quarter offer potential value upside through an extended mine life and large diamond recovery respectively. The forecast cost to complete remains within our fully funded capital budget of $811 million.”

When complete, Renard will be Quebec’s first diamond mine.

Pic caption: Construction Work in progress at Renard site