Stornoway Diamond Corporation
TSX : SWY

Stornoway Diamond Corporation

March 08, 2010 10:15 ET

Stornoway Reports Overall Diamond Recovery of 86.2 CPHT From Notch Sample

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Stornoway Diamond Corporation (TSX:SWY) and Shear Minerals Ltd. (TSX VENTURE:SRM) today announced that processing of the minibulk sample from the Notch kimberlite at the Churchill Diamond Project in Nunavut is complete with an overall diamond recovery of 86.2 carats per hundred tonne ("cpht"). A total of 129 diamonds greater than 1.18 mm were recovered from 17.26 dry tonnes of Notch kimberlite. The five largest recovered stones weigh 0.92, 0.81, 0.77, 0.63, 0.63 carats.

"We are very pleased with the substantial increase in +1.18mm diamond grade of the Notch kimberlite in comparison to previous results and the presence of larger diamonds," says Shear President and CEO Pamela Strand. "Notch is the second kimberlite to be minibulk sampled and return potentially economic grades at Churchill. This 14.87 carat parcel provides us with a more representative sample of the Notch diamond population that will be examined to determine the next steps in the continued evaluation of the Churchill Diamond Project."

Today's diamond results are from two separate surface samples collected by hand trenching along the Notch kimberlite dyke in October 2008. Sample grades are based on diamonds recovered on a 1.18mm square mesh sieve size or larger. A smaller 3.9 tonne sample (February 12, 2007) returned a +0.85mm sample grade of 69 cpht. The +1.18mm sample grade for this 3.9t sample is 51 cpht. The Notch kimberlite is a 1.75m wide vertical kimberlite dyke that trends for more than 3 km based on geophysical interpretation (see February 12, 2007 news release). Complete diamond recoveries were as follows:

Sample Number Sample Weight Dry (Tonnes) Diamond Recovery carats per Tonne (+1.18mm) Weight of Diamonds Recovered Carats (+0.85mm) Number of Stones Recovered (+1.18mm)
Notch Bulk Sample 17.26 0.862 14.87 129
Kimberlite Sample Weight (dry - kg) 1.18mm Sieve 1.70mm Sieve 2.36mm Sieve 3.35mm Sieve 4.75mm Sieve 6.70mm Sieve Total Diamond Count
Notch Bulk Sample Total 17260 67 36 18 8 0 0 129
 
1 The five largest diamonds weigh 0.92 ct, 0.81 ct, 0.77 ct, 0.63 ct and 0.63ct

Samples were submitted to the Saskatchewan Research Council Geoanalytical Laboratories ("SRC") and run through their 5 tonne per hour Dense Media Separation ("DMS") Plant using a 0.85mm cutoff. A heavy mineral concentrate was generated and then passed through a 2-stage X-ray sorter with a grease table audit of the X-ray rejects. Resulting concentrates were hand sorted and weighed in a secure glove box facility. The recovered diamonds will be described, categorized and assessed for any breakage. For photographs of the diamonds, please visit www.shearminerals.com. An audit of the X-ray and grease table rejects is currently underway using caustic fusion.

Till Sample Result Update

Results have been received for a total of 150 priority till samples that were processed at Mineral Services Canada. These samples targeted the heads of previously identified indicator mineral trains to further definethe source area. Of the 150 samples, 149 returned kimberlite indicator minerals. The highest count sample was 1,069 kimberlite indicator minerals of which 960 are pyrope garnets in sample 08C460 (all counts are normalized). A total of 41 samples returned pyrope counts in excess of 15 pyrope garnets. These sample results have assisted in further refining the heads of six un-sourced indicator mineral trains in both the Sedna and Josephine River Corridors. Microprobe results are pending.

The Churchill Diamond Project is owned 58.14% by Shear and 41.86% by Stornoway and is comprised of the diamond rights to more than 800,000 acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tonne. The 2010 field program is under the supervision of Pamela Strand, P. Geol., a Qualified Person under NI 43-101, who has reviewed and approved the contents of this news release.

Stornoway Diamond Corporation

Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing.

On behalf of the Board

STORNOWAY DIAMOND CORPORATION

Matt Manson, President and Chief Executive Officer

This document contains "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.

Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future events. These forward-looking statements include, among others, statements with respect to Stornoway's objectives for the ensuing year, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "potential", "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Stornoway's future operations, future exploration and development activities or other development plans contain forward-looking statements.

All forward-looking statements and information are based on Stornoway's or its consultants' current beliefs as well as assumptions made by and information currently available to them concerning the presence of diamonds and its host rocks at the Project, diamond values, diamond recovery and breakage, anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements.

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