Toronto-listed Star Diamond Corporation has announced its intention to purchase the remaining 50% interest in the Buffalo Hills diamond project, located in Alberta, from TSX-V-listed Canterra Minerals. This acquisition will grant Star Diamond full ownership of the asset.
Reassessment Reveals Valuable Diamond Types
Early last year, Star Diamond revisited the Buffalo Hills project, which had previously undergone bulk sampling in 2010. CEO Ewan Mason stated that this reassessment unveiled promising findings, including the presence of Type IIa diamonds and fancy yellow diamonds with high modelled prices. He remarked, “It became clear to us that further work needed to be done, and with a number of pipes at surface we believe that a larger bulk sample should be taken to determine how many of the 38 pipes on the property may be economic. Our plan would be to eventually extract a bulk sample and ship it to Fort à la Corne and run the sample through our on-site bulk sample plant.”
Buffalo Hills Project Overview
The Buffalo Hills project encompasses 21 mineral leases covering an area of 4,800 hectares. It is a significant diamond-bearing field, featuring kimberlite pipes akin to those found in the Fort à la Corne region of Saskatchewan. This similarity underlines the project’s potential for economic diamond extraction.
Canterra president and CEO Chris Pennimpede expressed optimism about the transaction, stating, “We are confident that Star Diamond will be able to maximise the value of the Buffalo Hills diamond project as a dedicated diamond explorer with complementary assets in the region. Canterra is now focused on advanced-stage copper and gold exploration in the central Newfoundland mining district and looks forward to maintaining its exposure to the project as a Star Diamond shareholder. We will be watching developments with much interest as our equity participation in Star Diamond provides our company with exposure to future success.”
