Rio Tinto Exploration Canada (RETC) says it expects to know more about plans for the Star diamond mining project in the Fort a la Corne Forest later this year.
Bulk sample processing from 10 cutter holes drilled in 2019 began last April and finished in December. On Thursday, Rio Tinto sent out an update saying the results improved their confidence in the grade of the site. However, they haven’t made a final decision on the project’s future, and are unlikely to for several months.
“At the moment, we are not conducting any bulk sampling or processing at the FalCon project site, but are monitoring and maintaining the site until a decision is made on future work,” reads an update sent out by Peter Dodson, Rio Tinto’s principal advisor on the FalCon project. “There is a small crew at (the) site providing security to keep the lights on and the equipment safe. We are using this time to consider options for future work.”
Dodson added that the reduced schedule means the company likely won’t add any new jobs on site this year. However, Rio Tinto has applied to the Ministry of Environment for approval to explore an area north of the Fort a la Corne Forest and east of Birchbark Lake. The company aims to have a helicopter drill program up and running by late summer or early fall.
“We remain in an advanced exploration phase,” the update reads. “We are continuing to study the technical, economic, social, cultural and environmental context of this area in order to evaluate the options for a viable future mine. These studies are still in early stages, and our focus remains on investigating design options for FalCon.”
Rio Tinto also completed a small geotechnical drilling program at Orion North in February. The program allowed workers to collect sand, clay and till samples along with kimberlite.
The company update says they spent roughly $10.8-million on local suppliers in 2020. That accounts roughly one-third of all company spending on the site. Local spending includes contracts for road maintenance and site security.
Rio Tinto says nearly 40 per cent of its employees are from communities located within 60 km of the site, including 25 per cent from local Indigenous communities.
The company declined to discuss its legal dispute with Saskatoon-based Star Diamond Corp.
“We do not comment on the ongoing legal process,” the update reads. “RETC continues to defend its work on this project and to involve Star Diamond in the consideration of information generated by RTEC so far.”
Rio Tinto says any diamonds discovered during the exploration phase are considered property of the Crown. They are kept in a secure facility and cannot by traded or sold.
If opened, the Fort a la Corne diamond mine would employ roughly 700 people over its 38-year life expectancy. The project has been criticized by leaders of James Smith Cree Nation, who say the provincial government’s environmental consultation process was inadequate, and worry the mine will violate traditional hunting and fishing rights.
