Kennecott, Montello eye targets in Manitoba

Based on results from regional till sampling and follow-up airborne magnetic geophysics on the Poplar diamond project in Manitoba, Kennecott Canada Exploration and its partner, Montello Resources (MEO-V), intend to launch a drill program.

The joint venture has identified 37 high-priority targets, 10 of which have been selected for drilling. The targets occur in five clusters of magnetic highs or magnetic lows.

Kennecott, a wholly owned division of Rio Tinto (RTP-N), and Montello have been exploring for diamonds in Manitoba for the past two years. The former, with a 60% interest, is managing the program.

Based on more than 400 glacial till samples, the partners applied for two packages of ground totalling 4,700 sq. km in the Knee Lake-Fox River area of northeastern Manitoba. Each land package covers separate and isolated kimberlite indicator anomalies.

In order to meet its exploration commitments under the joint venture, Montello will be vending its 40% interest of Poplar into a wholly owned subsidiary, called Arctic Star Diamond, in exchange for 3 million special warrants and reimbursement of $75,000 in costs. Montello intends to seek a listing for Arctic Star.