Stornoway Diamond has closed a deal to acquire DIAQUEM Inc's 50% interest in the Renard Diamond Project in Quebec, the company announced Friday.

A feasibility study and an environmental and social impact assessment of the Renard Diamond Project are scheduled to be completed by the third quarter of 2011, and Quebec's Ministry of Transportation is expected to begin work this year on extending Route 167, which will provide year-round highway access to the Renard project.

Renard is located in the James Bay region of north-central Quebec. According to a preliminary assessment, the project has the potential to produce 30 million carats of rough diamonds worth C$885 million over the course of 25 years. A capital investment of some C$511 million is needed to develop the project, which will cost some C$67 million annually to operate and is expected to employ 300 workers.