Partners target Aviat kimberlites (March 28, 2005)

Encouraged by the success of their 2004 sampling program, partners Stornoway Diamond (SWY-T), BHP Billiton (BHP-N) and Hunter Exploration Group have budgeted $7.25 million for exploration of the Aviat project in Nunavut’s Melville Peninsula during 2005.

Samples from all five kimberlites tested in 2004 turned up diamonds. The largest stone measured 2.2 by 2.1 by 1.8 mm (T.N.M., Jan. 17-23/05). A 10.4-tonne sample of the AV-1 kimberlite body, processed for diamonds greater than 0.85 mm, returned an initial sample grade of 0.83 carat per tonne.

So far, the trio has identified six diamondiferous kimberlites along a 6-km stretch of the 75-km-long-by-3-to-8-km-wide Tremblay corridor; the corridor is home to more than 100 occurrences of kimberlitic boulders and numerous kimberlitic indicator mineral anomalies.

The AV5 kimberlite, which represents a surface concentration of hypabyssal kimberlite boulders near AV-1, will be drill-tested for the first time in 2005. A 48-kg sample from the body previously yielded 93 diamonds.

Plans call for ground geophysical surveys, till sampling, and prospecting. The partners intend to sink 30-50 holes, the initial targets being geophysical anomalies under lakes within the Tremblay corridor. The drilling campaign will begin in April and is expected to last seven months.

Stornoway holds a 70% interest in the project; BHP Billiton, 20%; and Hunter Exploration Group, the remainder.

Shares ended 13, or 7.7%, higher at $1.83 in Toronto following Stornoway’s announcement about its exploration plans for Aviat.