Stornoway Diamond Corporation · OTC:SWYDF
Stornoway Diamond — Shareholder Meeting (October 2011)
44 slides from Stornoway Diamond's shareholder meeting presentation, Oct 20, 2011
Slide 1: Building Québec's First Diamond Mine
BUILDING QUÉBEC’S FIRST DIAMOND MINE Annual General and Special Meeting, Montreal, October 20, 2011 Matt Manson Patrick Godin President and CEO COO
Slide 2: Forward-Looking Information
2 Forward-Looking Information This presentation contains "forward-looking information" within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statement
Slide 3: Your Board and Management Team
3 Your Board and Management Team Additional Management Robin Hopkins, VP Exploration Dave Skelton, VP Project Development Ghislain Poirier, VP Public Affairs Matt Manson Pat Godin Zara Boldt Nick Thomas, Manager, Investor Relations President, CEO COO & Director CFO and VP & Director Nominee Finance
Slide 4: A Look Back at Last Year's AGM
44 A Look Back at Last Year’s AGM Taken from the September 2010 AGM Presentation
Slide 5: The Past 12 Months
55 The Past 12 Months Renard Project Resources1 +3% and +31% (Indicated and Inferred Mineral Resources respectively) Stock Price2 -32% Milestones Achieved Acquired the 100% interest in the Renard Project. Raised $35 million in a bought deal financing and rebalanced the company`s capital structure. S
Slide 6: A Future in Diamonds
6 A Future in Diamonds Stornoway is committed to building a business based on the mining of diamonds in Canada WHY? Diamond Supply is Shrinking Diamond Demand is Growing Prices are Increasing We have a World Class Asset in Renard and a Quality Project Pipeline
Slide 7: Why Diamonds?
stornoway DIAMOND CORPORATIO? Why Diamonds? OLG MEAG Sis b
Slide 8: Who Is Buying Diamonds
8 Who Is Buying Diamonds Share of World Diamond Jewelry Market, 2005 to 2020 China (and Asia-Pacific) Others 2005: $62B 10% 4% By 2020 Asia will have grown to 57% of the World Diamond Jewelry Market India (and US Asia-Arabia) 49% 13% Europe China (and Asia-Pacific) 2010: $74B 10% 15% Japan 14% US 42
Slide 9: Why? It's about Economic Growth
9 Why? It’s about Economic Growth 2020 World Total 2010-2020 GDP GDP of $136 (PPP) Growth Trillion Forecast By 2020, China’s GDP on a purchase Rest of the power parity (PPP) 35% 2010 World basis is forecast to World Total GDP of $76 grow 190% to $28 Trillion Trillion and China will rank #1 in the wo
Slide 10: Demographics
10 Mand Demographics PERCENTAGE CHANGE IN CHINESE POPULATION, 2005-2020 120% 240M 100% 160M 80% The Baby Boomers of 60% China and India are 40% 20% entering the age brackets 0% which, by experience from -20% Under 25 25-34 35-44 45-54 55-64 more developed markets, are the peak years for PERCENTAGE C
Slide 11: Interesting Facts about Diamonds and China
11 Interesting Facts about Diamonds and China (after De Beers, May 2011) Between 2010 and 2015 the middle class in both China and India will double in size with each country having a larger middle class than the next 6 developing countries combined The Chinese upper middle class (income >$30,000/a)
Slide 12: World Supply, and Renard's Role in this New World
12 World Supply, and Renard’s Role in this New World Star-Orion (SGF) Renard (SWY) 200 Gahcho Kue (MPV, De Beers) AK6 (LUC) 160 2010-2020: Maximum M Carats 120 23% increase in carat 80 supply according to the 40 most optimistic 0 forecaster (Alrosa). Alrosa Others 27.8% Stornoway 9.8% 3.0% Tans Hex
Slide 13: Diamond Prices are Responding
13 Diamond Prices are Responding Rough and Polished Diamonds Against a Basket of Indicators, 2003-Present COMMODITY INDEX DATA 700 16000 WWW Rough Diamond Index Polished Prices Index Gold Closing Fix 14000 600 IMF CPI S&P TSX Composite Index Weekly Closing IMF IPI IMF CPI NonFuel IMF Coal(Aust) 1200
Slide 14: Renard: Québec's First Diamond Mine
Renard: Québec’s First Diamond Mine
Slide 15: The Renard Diamond Project
15 The Renard Diamond Project One of the World’s Best New Diamond Development Projects In one of the World’s Best Mining Jurisdictions
Slide 16: Renard: Québec's First Diamond Mine
16 Renard: Québec’s First Diamond Mine Resource Size (24m Carats Ind. Resource, 17m Carats Inf. Resource, US$7B Contained Value) 60 0 60 120 Kilometers Resource Upside Laforge 2 (24 to 49m Carats ”Potential Mineral Deposit”, Laforge 1 Brisay US$4B to US$8B Contained Value) LG4 LG2 LG3 High Value Dia
Slide 17: Renard Kimberlite Bodies
17 Renard Kimberlite Bodies 0 1 2 Kilometers N 60 0 60 120 Kilometers Laforge 2 Laforge 1 R10 Brisay LG4 LG2 R7 LG3 Foxtrot Property Hibou R1 Eleonore Wemindji Renard R65 Western Troy Eastmain Mine R4 Strateco R8 R9 R3 Troilus Mine R2 Temiscamie Lynx Mistissini Matagami Chibougamau Kimberlite Bodies
Slide 18: Developing the Renard NI 43-101 Resource
18 Developing the Renard NI 43-101 Resource Mineral Resource Statement, January 24th, 2011 INDICATED RESOURCE Renard 65 29cpht Drill Delineated Renard 3 Micro/Macro Diamond Sampling Renard 2 106/118cpht 103/118cpht Bulk Sampling for Value 24 million carats Renard 4 53/44cpht Renard 9 INFERRED RESOUR
Slide 19: Renard's Growing Resource 2001-2011
19 Renard’s Growing Resource 2001-2011 A Project with a Long Mine Life Millions 2010 Geostrat NI 43-101 Resource (Tonnes, Carats, $) 24mcarats Indicated, 17 mcarats Inferred US$7 billion contained value 140 140 Expenditures ($) 120 120 Carats (IND+INF) Tonnes PMD High The Vision: 40+ years of 100 10
Slide 20: The Renard Kimberlite Cluster
The Renard Kimberlite Cluster 20 Mine Plan under Development in the Upcoming Feasibility Study A large proportion of the project’s total Mineral Resources, and the non-resource upside, lie within the scope of the principal infrastructure elements contained in the Feasibility Study (Shaft, Tailings F
Slide 21: Feasibility Study and ESIA
21 Feasibility Study and ESIA In July 2010 Stornoway announced the formal commencement of a $28.3m feasibility level program for Renard designed to lead to a production decision. FEASIBILITY WORK PROGRAM: Bankable Feasibility Study (SNC-Lavalin, AMEC, GMining, Golder, Itasca) Separate power line stu
Slide 22: Renard Bankable Feasibility Study
22 Renard Bankable Feasibility Study CONCEPTUAL MINE PLAN Combined open pit and underground mine based on a reserve derived from the Indicated Resources in Renard 2, 3 & 4 only. A Long Term Business Plan will contemplate the mining The Renard Bankable of additional Inferred Resources in Renards 2, 3
Slide 23: Feasibility Study: Mine Design Elements
23 Feasibility Study Mine Design Elements (Draft) Renard will have a small footprint: 3.1km2 (compared to Diavik Mine at 13km2 and Victor Mine at 28.8km2) Environmental baseline studies have been completed. Processed kimberlite disposal will be through a dry stack with no liner and minimal leach pot
Slide 24: Feasibility Study: Mine Design Elements
24 24 Feasibility Study Mine Design Elements (Draft) Renard 4 Renard 3 Underground mining method at Renard 2 & 3 will be blast-hole shrink stopage with backfill from the surface pits. Renard 2 The Renard shaft will be sunk to 740 meters, and will be rated at 7,000 tpd at 1,400m deep. Three productio
Slide 25: Permitting and Development Schedule
25 Permitting and Development Schedule 2011 2012 2013 2014 2015 2H 1H 2H 1H 2H 1H 2H 1H 2H BFS ESIA Community Hearings Certificates of Authorisation Detailed Engineering Project Financing Road Construction First Vehicle Access Mine Construction Production Project construction and production schedule
Slide 26: Infrastructure: Power and Road Access
26 Infrastructure: Power and Road Access A Canadian Diamond Project with an All Season Highway and Cheap Grid Power Road: The Québec Ministry of Transportation Caniapiscau “Route 167 Extension”, connecting Renard to Route 167 Extension Hydro Facility Existing Winter Road Existing Hydro Line the prov
Slide 27: Québec's Plan Nord: Launched May 9th 2011
27 Québec’s “Plan Nord”: Launched May 9th 2011 One of the World’s Best Mining Jurisdictions The Renard Diamond project is at the center of the Plan Nord, the visionary initiative to sustainably develop Québec north of the 47th parallel through infrastructure investment, community development and bio
Slide 28: Community Relations
28 Community Relations The Renard Diamond Project is situated close to the Cree Nation of Mistissini (CNM) and the mining community of Chibougamau. The project is under the environmental protection regime of the James Bay and Northern Québec Agreement and the New Relationship Agreement (or Paix des
Slide 29: Stornoway's Project Pipeline
Stornoway’s Project Pipeline
Slide 30: Stornoway's Project Pipeline
30 Stornoway’s Project Pipeline Mineral resources that are not mineral reserves Stornoway possess a strong pipeline do not have demonstrated economic viability. The potential quantity and grade of any non- of advanced and grassroots exploration resource potential mineral deposit” (“PMD”) is conceptu
Slide 31: Aviat, Melville Peninsula, Nunavut
31 Aviat, Melville Peninsula, Nunavut Stornoway 90% Ownership. Awaiting Bulk Sample AV1 ES 1 WEST ES 2 AV1 ES 3 ES 4 AV4 Area of Drill Intercepts Eastern Sheet CentennialFault Kimberlite February 2009: Complex (ESC) Outcrop 43 tonne sample yields 210 cpht A May 2009: AV6 148 tonne AV7 sample yields
Slide 32: Qilalugaq Project, Repulse Bay, Nunavut
32 Qilalugaq Project, Repulse Bay, Nunavut Stornoway 100% Ownership. Awaiting Bulk Sample Discovered by BHP and acquired by Stornoway. 11 pipes - 8 dykes. Includes the Q1-4 kimberlite: the largest kimberlite in the eastern Arctic at 14ha 50 carats of diamonds recovered to date from drilling and surf
Slide 33: Hammer Kimberlite, Coronation District, Nunavut
33 Hammer Kimberlite, Coronation District, Nunavut Stornoway 75% Interest Discovered by surface pitting in October 2009. Single microdiamond from 6kg sample at that time. Delineation drilling during summer 2011 Kugluktuk • 21 short drill holes; 1,800m of core; 930m of kimberlite • deepest intersecti
Slide 34: Pikoo and Aeon Exploration Projects
34 Pikoo (Saskatchewan) and Aeon (Québec) Exploration Projects Stornoway 100% Ownership. Advancing to Drilling. PIKOO, SASKATCHEWAN Brabant McLennan Lake Multiple Kimberlites Implied by Kimberlitic Indicator Pukatawagan Mineral Anomalies. Island Falls Stanley Mission Diamondiferous Geochemistry Piko
Slide 35: Pikoo Project, Saskatchewan
35 Pikoo Project, Saskatchewan Stornoway 100% Ownership. Advancing to Drilling. Brabant McLennan Lake Pukatawagan Island Falls Stanley Mission Pikoo Project Pelican Narrows La Ronge Deschambault Lake Jan Lake Flin Flon Pikoo Project 33,374 Hectares Molanosa Sturgeon Landing Pikoo Project Timber Lake
Slide 36: Aeon Project, Québec
36 Aeon Project, Québec Stornoway 100% Ownership. Advancing to Drilling. Aeon Project 95 kilometers Laforge 2 Hydro Québec facility 50 km Brisay Hydro Québec facility Aeon Project 49,350 Hectares 5 km
Slide 37: Outlook for the Year Ahead
stornoway DIAMOND CORPORATIOD Outlook for the Year Ahead OLG MEAG Sis b
Slide 38: Stornoway's Platform for Project Development and Financing
38 Stornoway’s Platform for Project Development and Financing BALANCE SHEET* Market Capitalization: C$ 216 million (based on voting and non-voting shares) Total Shares Outstanding: 146 million ANALYST COVERAGE (fully diluted) Cash and Short Term Deposits: RBC Outperform- C$ 25 million (as of July 31
Slide 39: The Year Ahead
39 The Year Ahead 12 MONTH OUTLOOK Completion of the Renard Bankable Feasibility Study Ground Breaking on the Route 167 Extension Completion of the Renard Environmental and Social Impact Assessment Community Consultations and Certificates of Authorization (end 1H-2012) Continued Renard Resource Expa
Slide 40: Questions?
stornoway MOND CORPORATION Questions? OLG MEAG Sis b
Slide 41: Building a Canadian Diamond Resource Base
41 BUILDING A CANADIAN DIAMOND RESOURCE BASE
Slide 42: Appendix: Renard Mineral Resource Estimate
Appendix: Renard Mineral Resource Estimate 42 Published January 24th, 2011 Grade Tonnes Contained Carats Kimberlite (cpht) (millions) (Millions) Renard 2 103 17.63 18.09 Renard 3 106 1.75 1.85 Renard 4 53 7.25 3.81 Renard 9 -- -- -- Lynx Dyke -- -- -- Hibou Dyke -- -- -- Total Indicated 89 26.63 23.
Slide 43: Appendix: Renard Potential Mineral Deposit
Appendix: Renard Potential Mineral Deposit 43 Published January 24th, 2011 Kimberlite Grade Tonnes Contained Carats (cpht) (millions) (Millions) Renard 2 103 to 188 4.0 to 4.6 4.1 to 8.6 Renard 3 107 to 168 0.8 to 1.6 0.8 to 2.8 Renard 4 38 to 79 11.1 to 15.3 4.2 to 12.1 Renard 9 45 to 50 3.9 to 6.3
Slide 44: Appendix: Renard Diamond Valuation
44 Appendix: Renard Diamond Valuation Published June 13th, 2011 Renard kimberlite pipes have a diamond population with a coarse size distribution and high proportion of large white gems. Lynx and Hibou kimberlite dykes have a finer distribution of browner stones. 99% by weight gem/near-gem quality.
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