Star Diamond Corporation · TSX:DIAM
Star Diamond — Investor Presentation (November 2020)
26 slides from Star Diamond's investor presentation, Nov 19, 2020
Slide 1: Advancing the world’s largest and most attractive diamond development project
Advancing the world’s largest and most attractive diamond development project Star - Orion South Diamond Project & Fort à la Corne Diamond District CORPORATE PRESENTATION November 19, 2020 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as "forward-looking statements"). Forward-looking statements are often, but not always, identified by the
Slide 3: Star Diamond is Advancing the World’s Largest and Most Attractive Diamond Development Project
Star Diamond is Advancing the World’s Largest and Most Attractive Diamond Development Project • Large, long-life mine: ~66 million carats over 38-year mine life • Outstanding geology: large, contiguous diamond bearing kimberlites hosting very attractive diamonds • Attractive economics: $2.0 billion
Slide 4: Star – Orion Results Indicate Favourable Comparison to Current Producers
Star – Orion Results Indicate Favourable Comparison to Current Producers • Valuation of diamond deposits dependent on tonnes, grade and STAR HAS AN UNUSUALLY COARSE SFD diamond price AND ONLY LETSENG IS COARSER • Diamond price is unique for each kimberlite • Star and Orion South have significant car
Slide 5: Star and Orion South Kimberlites are Well-Understood and Project is Well-Advanced
Star and Orion South Kimberlites are Well-Understood and Project is Well-Advanced • Diamond exploration began in 1995 • Bulk sampling programs conducted between 2003-2009 • 200 carats from Star bulk sample selected for cutting and polishing in 2007, proving high-quality polished diamonds could be pr
Slide 6: Ideal Location and Jurisdiction
Ideal Location and Jurisdiction Existing Mines Exploration and Evaluation Projects • Saskatchewan: very stable geo-political jurisdiction (rated #2 Mining Investment Jurisdiction by Fraser Institute) Nunavut Territories Northwest Naujaat Chidliak • Constructive and collaborative relationships Territ
Slide 7: Proximity to existing infrastructure and labour significantly lowers operating costs
Proximity to existing infrastructure and labour significantly lowers operating costs • Project is less than 20km from paved highway • Access to provincial power grid • Access to pool of local skilled workers including from local communities 7
Slide 8: Attractive Geology: Extensive Kimberlites
Attractive Geology: Extensive Kimberlites • Large, contiguous diamond bearing kimberlites hosting very attractive diamonds. • Star - Orion South Project located in the south-eastern part of Star Diamond’s properties • More than 60 additional kimberlites represent exploration upside potential 8
Slide 9: PEA Site Layout – General Arrangement
PEA Site Layout – General Arrangement • Two open pits with a centralized processing plant • Star - Orion South Project located in southern area of Star Diamond properties 9
Slide 10: Star and Orion South Kimberlites - Core, Large Diameter Drilling and Underground Bulk Sampling
Star and Orion South Kimberlites - Core, Large Diameter Drilling and Underground Bulk Sampling • Resource is well-understood as a result of extensive archival and current drilling • Core drilling to define the extent and internal structure of the kimberlite • Large Diameter Drilling for grade determ
Slide 11: Star and Orion South Kimberlites - Core, Large Diameter Drilling and Underground Bulk Sampling
Star and Orion South Kimberlites - Core, Large Diameter Drilling and Underground Bulk Sampling UNDERGROUND BULK SAMPLING RESULTS LARGE DIAMETER DRILLING Kimberlite Dry Tonnes Number of Total Grade Largest Stone Kimberlite Total Holes Kimberlite (m) Unit Processed Stones Carats (cpht) (carats) Unit C
Slide 12: Attractive Geology
Attractive Geology • Bulk samples have delivered excellent results: – Star: over 75,000 tonnes of ore yielded nearly 11,000 WEIGHTED AVERAGE PRICE carats, including a 49-carat stone (Per Carat USD) – Orion South: over 23,000 tonnes of ore yielded 2,300 Star: carats, including a 45-carat stone • Star
Slide 13: High Value Diamonds
High Value Diamonds Star 5.39 carat • Evaluation parcel IF $2,466/ct US$13,300 recovered to date includes these high value diamonds Star 4.77 carat Orion South 10.53 carat IF $4,535/ct • High value diamonds Fancy Yellow $8,000/ct US$84,240 US$21,600 include internally flawless octahedra, fancy yello
Slide 14: Star - Orion South Contains a Significant Percentage of High-Value Type IIa Diamonds
Star - Orion South Contains a Significant Percentage of High-Value Type IIa Diamonds • Type IIa diamonds: Star and Orion South Kimberlites - Type IIa Diamond Statistics (Diamonds +11 DTC (0.32 carats) to >10.8 carats) – contain no nitrogen or boron impurities Kimberlite Geological Diamonds Type IIa
Slide 15: Preliminary Economic Analysis (2018) Demonstrates Very Attractive Economics
Preliminary Economic Analysis (2018) Demonstrates Very Attractive Economics Surface Mine Recovery Base Case Net Present Value (7%) Payback Period After Tax ~66 Million Carats $2.0 Billion IRR 19% 3.4 Years Project Life 38 Years LOM plant feed Construction Capex LOM Capex 470 Million tonnes $1.41 Bil
Slide 16: Bulk Sampling Program & Site Work Underway
Bulk Sampling Program & Site Work Underway • Rio Tinto Exploration Canada (RTEC) has embarked on a complex bulk sampling program RTEC Trench Cutter Holes (10) drilled on the using new technology derived from civil Star Kimberlite during 2019, in relation to engineering applications historical underg
Slide 17: Status of RTEC Litigation
Status of RTEC Litigation1 • In 2019, RTEC provided notice to Star Diamond for the Expenditure Maximum Project Option Program exercise of all four options under the Option to Joint ($millions) Time Share Venture Agreement despite not completing the bulk Ten bulk sample holes on Star $18.5 3 years Ze
Slide 18: Experienced Management and Technical Team
Experienced Management and Technical Team Ken MacNeill George Read President, CEO, Director Senior Technical Advisor Extensive background with over 35 years Diamond exploration geologist with 36 experience in all aspects of natural years of international experience resource exploration and developme
Slide 19: With an Excellent Location, Geology & Economics, Star Diamond is Advancing the World’s Largest & Most Attractive Diamond Development Project
With an Excellent Location, Geology & Economics, Star Diamond is Advancing the World’s Largest & Most Attractive Diamond Development Project • Large, long-life mine: ~66 million carats over 38 year mine life • Outstanding geology: large, contiguous diamond bearing kimberlites hosting very attractive
Slide 20: Appendix
STAR DIAM@ND CORPORATION Appendix
Slide 21: Preliminary Economic Analysis (2018) Demonstrates Very Attractive Economics
Preliminary Economic Analysis (2018) Demonstrates Very Attractive Economics NEW TECHNOLOGY PROVIDES ATTRACTIVE ECONOMICS OF PEA Total potential plant feed 470 MT Weighted average diamond grade 14 CPHT Total recovered carats 66 MCT Life of mine 34 Years Takraf compact bucketwheel excavator for removi
Slide 22: Bulk Sampling Site Construction Completed
Bulk Sampling Site Construction Completed KIMBERLITE SEPARATION UNIT (KSU) ON-SITE SAMPLE STORAGE AREA RTEC’s KSU recovers washed kimberlite in the size range -80 to +0.85 On-site cubic metre bulk bag storage area: 6,848 bulk bags of kimberlite millimetre, from the slurry that is pumped from the Tre
Slide 23: Project Falcon Bulk Sampling Plant
Project Falcon Bulk Sampling Plant 23
Slide 24: Diamond Assortment: Star EJF +11 DTC
Diamond Assortment: Star EJF +11 DTC • Star UG EJF +11DTC diamonds sorted by Type (Type I and Type II) and Colour • 2,608 stones weighing 1,601 carats • High proportion of “white” diamonds and very low proportion of boart 24
Slide 25: Diamond Assortment: Orion South EJF +11 DTC
Diamond Assortment: Orion South EJF +11 DTC • Orion South UG EJF +11DTC diamonds sorted by Type (Type I and Type II) and Colour • 772 stones weighing 310.8 carats • High proportion of “white” diamonds and very low proportion of boart 25
Slide 26: Head Office: 600, 224 - 4th Avenue South Saskatoon, Saskatchewan
Head Office: 600, 224 - 4th Avenue South Saskatoon, Saskatchewan Canada S7K 5M5 Tel: +1 (306) 664-2202 Fax: +1 (306) 664-7181 stardiamondcorp.com @StarDiamondCorp Star Diamond Corp 26