Saskatchewan Eyes Potential Diamond Boom with New Investment

Star Diamond Corp., headquartered in Saskatoon, is revitalizing its diamond exploration efforts in Saskatchewan’s Fort à la Corne region, fueled by a fresh investment and an updated feasibility study. This strategic move comes after years of project delays, indicating a potential resurgence for diamond mining in the area.

Investment Sparks New Hope

In May 2023, Calgary-based Spirit Resources Inc. made a significant commitment by investing $4 million into Star Diamond, alongside an $800,000 loan to support working capital and a pre-feasibility study. This investment has been described by Mark Shimell, Star Diamond’s vice-president of exploration, as a catalyst that “brought new life back into the project.”

Shimell emphasized the importance of the pre-feasibility study, stating that it aims to demonstrate the economic viability of the diamond project, which has consistently shown promise since its initial discovery in 1989. The Fort à la Corne deposit, which sits northeast of Saskatoon, has yielded large, high-quality diamonds during drilling operations, suggesting substantial wealth and job creation potential for the region.

Geological Insights and Economic Potential

The Fort à la Corne area, accessible by highway and near existing electrical infrastructure, is home to over 70 identified kimberlites—volcanic pipes that can contain diamonds. Shimell pointed out that recent drilling results have led to a revised estimate of the mineral resource, indicating an increase of up to 37 percent, bringing the total to 36.9 million carats at one site. This suggests a rich vein of diamonds that could potentially transform the local economy.

Officials from the Saskatchewan Ministry of Energy and Resources have expressed optimism about the province’s diamond potential. Cory Hughes, assistant deputy minister of resource development, noted that the government remains open to collaborating with companies interested in diamond exploration, citing historical geological data as a valuable asset for prospective investors.

Despite the current slump in the global diamond market, which has seen prices drop significantly since late 2022, Shimell remains hopeful that the Fort à la Corne project can become a key player in the diamond industry. He stated, “Our project is the only world-class diamond project that is anywhere close to being put into production in the near future.”

Star Diamond has navigated various challenges over the years, including a failed joint venture with Rio Tinto Exploration Canada in 2019. This partnership collapse left the company at a standstill, but with full control regained in 2023, the path forward appears clearer.

As the diamond industry faces various challenges, including competition from synthetic diamonds and a decline in demand, the potential for a new mine in Saskatchewan could provide a much-needed boost to both the provincial economy and the global diamond supply chain.

With the support of Spirit Resources and the Saskatchewan government, Star Diamond is poised to capitalize on its rich mineral deposits, aiming to overcome past setbacks and forge a successful future in diamond mining.