Foxtrot 1 and 2 property

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This is the ultimate boundary of the Foxtrot 1 and 2 properties, which are part of the Renard Diamond Project and 100% owned by Stornoway Diamond Corporation. It lies directly south of the Foxtrot 3 property and is where Stornoway is developing its wholly owned Renard Project, which will be Quebec's first diamond mine. The Foxtrot 1 and Foxtrot 2 properties consist of 617 individual claims, one mining lease and one surface lease.

Tenements in the Foxtrot Property area were initially staked in 1996 by a 50:50 joint venture between Ashton Mining of Canada Inc. (Ashton) and SOQUEM Inc. (SOQUEM), with Ashton as operator. Subsequently, the Joint Venture partnership interests were reassigned to Ashton Diamonds (Canada) Inc. and DIAQUEM Inc. (DIAQUEM), a wholly-owned subsidiary of SOQUEM. Stornoway acquired Ashton and Ashton’s 50% property interest in January 2007. Stornoway acquired DIAQUEM’s 50% interest in April 2011. SDCI currently holds a 100% property interest, subject to a direct royalty on future diamond production of 2% in favour of DIAQUEM. The Renard Project is operated by Stornoway through its wholly-owned subsidiary SDCI.

The Project area is located within the eastern portion of the Superior Craton (Superior Structural Province) Figure 7.1. The Superior Province forms the Archaean core of the Canadian Shield, and is the largest contiguous region of Archaean crust remaining on the globe. It is considered to be an amalgamation of small continental fragments of Meso-Archaean age and Neo-Archaean oceanic plates, with a complex history of aggregation between 2.72 Ga and 2.68 Ga. Since about 2.6 Ga, the Province has been tectonically stable (Percival, 2006).

The Superior Province is surrounded by provinces of Paleo-Proterozoic age on the west, north and east (Churchill Province), and Meso-Proterozoic age (Grenville Province) on the southeast. Margins of the Superior Province were affected during Paleo-Proterozoic and Meso-Proterozoic tectonism. Proterozoic and younger activity is limited to rifting of the margins (Mid Continent Rift System), emplacement of numerous mafic dyke swarms, compressional reactivation and large-scale rotation at ca. 1.9 Ga, and failed rifting at ca. 1.1 Ga (Percival, 2006). Quaternary glacial cover in the area was controlled by the New Québec Ice Divide. From the divide, ice flowed north and northeast toward Ungava Bay and west to southwest toward Hudson Bay. Glacial lineaments are well developed and widespread. Eskers and hummocky to discontinuous, unmoulded, ground moraine deposits are also common.

The Renard kimberlite pipes and Lynx and Hibou dykes were emplaced into granitic and gneissic host rocks, and contain diamonds of potential economic interest. The bodies comprise a late Neo-Proterozoic to Cambrian kimberlite field in Québec. To date, nine kimberlite pipes have been identified over a 2 km2 area in the Renard Cluster (Renard 1 to Renard 10; with Renard 5 and Renard 6 forming one body, referred to as Renard 65). The kimberlite pipes are typically spaced between 50 m and 500 m from each other. Most of the Renard kimberlites are irregular and elliptical in plan view. Surface areas of the kimberlite portion of the pipes range from 0.1 ha to 2.01 ha. The Renard kimberlite pipes comprise root zone to diatreme facies rocks characterized by a complex internal geology.

A combination of open cast and underground methods will be used to mine the area. Open pit mining at Renard 2, 3 and 4 pipes will be carried out at a rate of 2000tpd for five and a half years. The pits for Renard 2 and 3 will continue till a depth of 100m. It will extend 117m below surface for Renard 4. The open pit operations will provide 9.4% of the total mill feed. Underground mining will be implemented in Renard 2, 3, 4 and 9 pipes. These pipes will contribute approximately 57.5%, 3%, 25.5% and 14% of the underground material.

Diamond production during the initial two years will be mostly derived from the Renard 2 and 3 open pits. Diamond production from the underground mine will occur during the second year. In the initial three years underground mining will be carried out together with open pit mining at 1500tpd. In the fourth year, underground mining will be undertaken at a rate of 3000tpd. By the seventh year, the rate of underground mining will reach 5000tpd.

A 4.5m by 5.2m decline will be driven from the surface to access the underground operations. Access to a depth of 810m will be through a 6m diameter shaft that will allow mining of the Renard 2, 4 and 9 pipes. During underground mining, two types of stoping methods will be used. The blasthole method will be used for Renard 3 and 9 pipes. About 163mm diameter holes will be drilled on a 5m-long and 5m-wide pattern. The stopes will be 40m to 100m high. To provide initial ore, this technique will be selectively used on Renard 2 pipe between level 150m and 200m. Since the Renard 9 pipe is encroached under a body of water, it will not be mined to its surface. Instead it will require a 100m crown pillar. Assisted block caving method will be used for the larger pipes Renard 2 and 4 that are suitable for caving. Drill drifts or levels will be installed at vertical intervals of 100m. Holes with 163mm diameter will be drilled on a 5m by 7m pattern. Ore will be brought to surface by 60t trucks.