FORT À LA CORNE — Test drilling for diamonds has started on the first bulk sample hole in the Fort à la Corne forest.
“This is to prove diamond grade and size attributes that we have already stated publicly, [and] for themselves to confirm grade and sizes and then a decision will [be] subsequently made to develop a mine,” said George Read, senior vice president of exploration and development for Star Diamond Corporation.
Rio Tinto Exploration Canada is doing the drilling. The Mineral deposits are owned by Star Diamond Corporation.
“The work that Rio Tinto is currently doing is to enable them to earn an interest in the project,” Read said. “We’ve made an option agreement so by spending over $70 million they can earn a 60 per cent interest in the project.”
On Oct. 12, the Government of Saskatchewan announced the creation of the Targeted Mineral Exploration Incentive, a new program meant to aid mining investment in Saskatchewan’s mineral-rich north.
Under the incentive, mining companies will have some costs associated with ground based exploration covered, including up to a 25 per cent rebate on some direct drilling costs up to $50,000 for any eligible company. The Saskatchewan Geological Survey will administer the incentive.
According to Read, they will be applying for the incentive.
“There can be opportunities for us in that,” Read said. “Yes, because certainly we do, as part of that program we are doing exploratory drilling so that work is applicable to part of this program.”
Written with files from Eric Westhaver.
