Rio Tinto has signed an option agreement with Shore Gold Inc. giving it three years to spend $18.5 million on drilling and bulk sampling at the latter’s Star-Orion South Diamond Project, 60 kilometres east of Prince Albert in Canada’s Saskatchewan region.
The agreement allows Rio Tinto to move to becoming a joint-venture partner once the drilling and bulk sampling are completed, eventually giving it a 60 percent stake in the project.
There are currently no diamond projects in Saskatchewan. If commercially viable, the project could be developed into a working diamond mine with a capital expenditure of and estimated $1.9 billion. The prospective diamond mine’s life was estimated at 20 years with the potential for mining to continue for 100 years according to a feasibility study released by Shore Gold in 2011.
The project still needs environmental clearance from the provincial government and a major consideration will be the amount of overburden that needs to be removed before the diamond-bearing kimberlite is reached.
Even if all goes smoothly, it could be up to ten years before the mine becomes operational.
https://www.gemkonnect.com/news/rio-tinto-signs-option-new-canadian-diamond-project