Star Diamond Corporation, a Canadian diamond exploration and development company, has announced its financial results for the third quarter of 2024 alongside updates to its mineral resource estimates.
Financial Performance
For Q3 2024, Star Diamond reported a net loss of $1.4 million, up from a loss of $0.6 million in Q3 2023. This increase was primarily due to higher exploration and evaluation costs, as well as increased administrative expenditures.
Year-to-date, the company recorded a loss of $3.9 million, nearly double the $1.8 million reported for the same period in 2023. The rise in expenses reflects the company’s expanded operations following its acquisition of Rio Tinto Exploration Canada (RTEC)’s 75% interest in the Fort à la Corne Project and the assumption of operational control.
The company ended Q3 2024 with $0.7 million in cash, compared to $0.6 million at the end of 2023, reflecting a slight improvement in liquidity despite increased expenditures.
Mineral Resource Updates
Star Diamond reported significant progress on its flagship project, the Fort à la Corne Project in Saskatchewan, which includes the Star-Orion South Diamond Project. The 2024 Mineral Resource Estimate (MRE) revealed:
- A 29% increase in total carats, reaching 71.7 million carats.
- A 26% rise in average diamond grade to 18.6 carats per hundred tonnes (cpht).
- A 2% increase in total tonnage.
These improvements were attributed to the integration of bulk sampling and trench cutter data, which enhanced the recovery of smaller commercial-sized diamonds.
Nelson Karun, Star Diamond’s Diamond Specialist, highlighted the characteristics of smaller diamonds from the project, which include favourable colour and a notable presence of octahedral shapes. The updated resource data will support the development of a forthcoming Pre-Feasibility Study (PFS).
Buffalo Hills Acquisition
In Q3, Star Diamond completed the acquisition of Canterra’s 50% interest in the Buffalo Hills Diamond Project in Alberta, granting it full ownership. This area contains 26 diamond-bearing kimberlites among 38 identified kimberlite bodies.
The acquisition was finalised with the issuance of 17.5 million Star Diamond shares, half of which are under a 12-month lock-up agreement, alongside a 1% royalty interest for Canterra.
Outlook and Implications
Looking ahead, Star Diamond plans to focus on technical evaluation and a development decision for the Star-Orion South Project, with the PFS laying the groundwork for a potential Feasibility Study.
For jewellers and industry professionals, Star Diamond’s Saskatchewan and Alberta projects indicate the potential for new diamond sources in Canada, supported by the characteristics of the diamonds identified. The company’s resource growth and project advancements are noteworthy, though its financial position indicates the need for additional funding to sustain ongoing operations.
