Star Diamond and partner Rio Tinto have confirmed they will place the Star-Orion diamond project in Saskatchewan, Canada, on care and maintenance until the end of this year.
The two, which as a joint venture are known as Fort à la Corne, met recently and Rio Tinto Exploration Canada exercised its voting power as 75% interest holder to place the Star-Orion South Diamond Project on care and maintenance through December 31 and will not commit additional capital to it this year beyond what is needed for C&M upkeep.
Rio Tinto will use the time of closure, it informed Star Diamond, to perform a near-term review of alternatives regarding the project, including its own potential exit from the effort.
“During today’s meeting, Rio Tinto stated that it remains pleased with the results of the comprehensive studies and bulk sampling program that have been completed to date at the project,” Star Diamond officials said.
Nonetheless, it called the decisions disappointing: “[We intend] to work with Rio Tinto in assessing alternatives,” it said.
Star Diamond’s most significant asset is its interest in the Fort à la Corne property.
The project is located in central Saskatchewan, some 60 kilometers east of Prince Albert. It is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development.
Source: Star Diamond