Star Diamond Corporation has filed its unaudited Q3 2025 financial results on SEDAR+, pairing a tighter financial profile with steady progress on two of Canada’s most closely watched diamond projects: Fort à la Corne in Saskatchewan and Buffalo Hills in Alberta.
Star Diamond is a Canadian natural resource company focused on exploring and evaluating Saskatchewan’s diamond resources. The Company holds a 100% interest in the Fort à la Corne Project (FALC), including the Star–Orion South Diamond Project, located in central Saskatchewan near paved highways and the provincial power grid. It also owns 100% of the Buffalo Hills Diamond Project in Alberta’s Buffalo Hills Kimberlite District, a 4,800-hectare field with multiple diamond-bearing kimberlites.
Fort à la Corne: PFS underway on Star–Orion South
Following its full consolidation of Rio Tinto’s former interest in Fort à la Corne, Star Diamond now controls key kimberlites, including Star and Orion South. In 2024, the Company completed a revised Mineral Resource estimate for the Star–Orion South Diamond Project. That updated resource is now the foundation for a re-optimized open-pit mine plan, including a re-evaluation of mineral reserves and an updated economic assessment.
On 9 September 2025, Star Diamond engaged Misty Clifton and SGS to complete a Pre-Feasibility Study (PFS) on Star–Orion South. The PFS will build on the revised 2024 mineral resource estimate and the extensive technical work completed for and since the 2018 Preliminary Economic Assessment. Key elements such as mining method, process plant design, site layout, and infrastructure from the earlier study can be updated and incorporated into the new PFS. The consultants currently estimate completion in Q4 2026. A positive PFS would enable a Feasibility Study and, ultimately, a potential production decision.
Buffalo Hills: advancing an under-the-radar Canadian diamond field
In Alberta, Star Diamond holds a 100% interest in the Buffalo Hills (BH) Project, roughly 400 kilometres northwest of Edmonton. The project comprises 21 mineral leases over 4,800 hectares within a district that hosts at least 38 kimberlite bodies, 26 of which are diamond-bearing, with several outcropping at the surface. Exploration in the area dates back to 1996, with small diamond parcels recovered from various programmes. Management is currently reviewing recent diamond valuation and typing work to shape future exploration and potential development scenarios.
Capital, governance, and cost controls
On 6 August 2025, the Company closed a private placement with Spirit Resources s.a.r.l, issuing 133,333,333 units at $0.03 per unit for gross proceeds of approximately $4.0 million. Each unit consists of one common share and one common share purchase warrant, exercisable at $0.04 within 12 months of issuance and $0.05 thereafter, for a 24-month period. If Star Diamond does not complete equity financings totalling at least $3.0 million within that period, the warrant term is extended by a further 12 months.
In connection with the financing, shareholders elected Al Gourley and Wayne Malouf as directors. The Company also issued 11,732,919 “Conversion Units” through the automatic conversion of outstanding principal and accrued interest under convertible promissory notes. Each Conversion Unit includes one common share and one warrant exercisable at $0.05 for 24 months, with a potential 12-month extension under similar financing conditions.
On 25 August 2025, Star Diamond announced the planned retirement of Chair, President and CEO Ewan Mason, effective 20 November 2025, marking a significant leadership transition as the Company advances its PFS and financing efforts.
Q3 and year-to-date 2025: reduced loss, improved working capital
For the three months ended 30 September 2025, Star Diamond reported a net loss of $989,000, or $0.00 per share, compared with a loss of $1,393,000, or $0.00 per share, in the same period of 2024. The smaller loss reflects:
- Administration costs reduced to $196,000 (2024 – $433,000) due to lower salaries, benefits, and management fees.
- Exploration and evaluation expenditures decreased to $501,000 (2024 – $775,000), largely related to security and maintenance, ongoing diamond analyses, and test work at Fort à la Corne.
For the nine months ended 30 September 2025, the net loss was $3,405,000 or $0.01 per share, compared with $3,909,000 or $0.01 per share in 2024. The year-to-date decline in loss was driven by:
- Lower administration expenses ($1,000,000 vs. $1,246,000).
- Reduced exploration and evaluation spending ($1,431,000 vs. $1,977,000).
- Lower corporate development costs ($134,000 vs. $324,000) as marketing and publications were scaled back.
- No loss on investment in Wescan Goldfields Inc. in 2025 (compared with a $116,000 loss in 2024).
These savings were partially offset by a higher non-cash charge from the unwinding of the discount on environmental rehabilitation provisions and a loss related to changes in the fair value of embedded derivatives in convertible debentures.
As at 30 September 2025, Star Diamond held $1,250,000 in cash and cash equivalents (vs. $164,000 at 31 December 2024) and reported positive working capital of $1,008,000, compared with a working capital deficit of $1,017,000 at year-end 2024. The improvement reflects proceeds from convertible debentures, the private placement, and the sale of Wescan shares, partially offset by operating cash outflows.
Cost reductions implemented in 2025 include: shrinking the head office footprint (reducing office lease payments by about 70%), streamlining management and staff roles, and lowering site costs as operations moved to a care-and-maintenance basis. A budget of $3,000,000 has been prepared for completion of the PFS, subject to securing financing.
Going concern and what it means for the trade.
While the balance sheet and cost structure have improved, Star Diamond cautions that its ability to continue as a going concern and fund its activities will depend on its success in raising additional capital. Without timely financing, operations and planned work programmes could be suspended.
For Canadian jewellers and the wider diamond trade, Star Diamond’s progress matters. Fort à la Corne and Buffalo Hills represent long-term potential sources of Canadian diamonds, with attractive infrastructure access and a growing technical dataset. The combination of a fully owned Saskatchewan flagship project, an underexplored Alberta district, and an active PFS process positions Star Diamond as a name to watch as the next phase of Canadian diamond development takes shape.
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