Partners target Aviat kimberlites (March 18, 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, included the largest stone measuring 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 carats per tonne.

So far, the trio has identified six diamondiferous kimberlites within a 6-km portion 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 surrendered 93 diamonds.

Plans for 2005 also call for ground geophysical surveying, till sampling, and prospecting. The partners plan to sink between 30 and 50 holes with the initial targets being geophysical anomalies situated under lakes within the Tremblay Corridor. The drilling campaign will begin in April, and is expected to take about 7 months.

Stornoway holds a 70% interest in the project, BHP Billiton owns 20%, and Hunter Exploration Group owns 10%.

Shares in Stornoway ended 13, or 7.7%, higher at $1.83 in Toronto following the news.