Melville kimberlites prove diamondiferous

Vancouver The cloak of secrecy under which Northern Empire Minerals (NEM-V) and Stornoway Ventures (SWV-V) acquired more than 5,200 sq. km of ground in northern Canada may well have proven prudent; the partners have discovered two diamond-bearing kimberlites on the Melville Peninsula in Nunavut.

On the back of the first confirmed diamond discoveries in the region, the partners have tied up another 22,257 sq. km of land in the area.

"The additional permits awarded to us by the Nunavut government have enabled us to secure in excess of seven million acres in total, representing one of the largest land positions assembled for diamond exploration in Canada," says Stornoway’s Chief Executive Officer, Eira Thomas.

Northern Empire and Stornoway optioned the properties in 2001 from a non-arm’s-length private company, Hunter Exploration Group. The two Northair Group companies can each earn a 35% interest in the Aviat North and South properties by spending a total of $2 million on exploration before Oct.1, 2005. The Hunter Group retains a 30% interest, including a 10% carried interest through to production.

In addition, Northern Empire and Stornoway agreed to reimburse Hunter for some $135,000 in out-of-pocket costs, issue 50,000 shares each, and pay a total of $125,000.

Located 850 km northwest of the territorial capital of Iqaluit, the Aviat project caught the eye of the proven diamond finders by regional kimberlite indicator mineral chemistry and favourable geology. The initial analysis paid off in 2002, when a regional sampling program identified a diamond-bearing kimberlite in the heart of the property, as well as a second diamond-bearing kimberlite occurrence some 2 km to the southwest.

The AV-1 kimberlite occurrence covers an 8-by-40 metre outcrop, where an 186.1 kg samples yielded 228 diamonds, with the largest stones measuring 2.2-by-1.86-by-1.32 mm.

"We are very pleased to have discovered diamonds at this early stage of Aviat’s assessment and we are confident that systematic exploration using geochemistry, geophysics and remote sensing techniques will result in additional kimberlite discoveries in this underexplored region," adds Thomas.

Petrographic and indicator mineral analysis completed by Mineral Services Canada indicated that the AV-1 kimberlite material is promising for a diamond host based on "very compelling eclogitic garnet signature combined with evidence from peridotitic garnet that suggests sampling of deep lithospheric material on a possible cratonic geotherm."

The second find comprises a series of angular boulders up to 50 cm in diameter. A 46-kg sample collected from the boulders yielded 92 diamonds with the largest stone measuring 1.02-by-0.62-by-0.52 mm.

Some 300 till samples have been collected over the property and so far, a number of indicator mineral anomalies have been identified, including two samples that contained kimberlite fragments.

"Our successful acquisition of such a large land package surrounding this exciting discovery has provided Northern Empire and Stornoway the potential to secure an entire kimberlite field," says Northern Empire’s President, John Robins.