The Star – Orion South Diamond Project located east of Prince Albert has been put on care and maintenance the end of December.
Star Diamond Corporation announced the decision in late June following a meeting of the Fort à la Corne joint venture management committee where Rio Tinto Exploration Canada Inc. exercised their voting power to place the project on care and maintenance.
Rio Tinto says it does not intend to commit additional capital to the project this year beyond what is necessary to fulfill its existing obligations. Rio Tinto also advised Star Diamond during the committee meeting that they intend to conduct a near-term review of its alternatives regarding the Project, including a potential exit.
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
According to the press release, the Star Diamond board of directors is disappointed by these decisions. Star Diamond intends to work with Rio Tinto in assessing alternatives regarding the Project.