De Beers will cover the cost to have the sample processed at its dense-media-separation plant in Grand Prairie, Alta. The cost savings to Snowfield is between $750,000 and $1 million. Snowfield will cover the cost of extracting the kimberlite and transporting it to the processing facility.
Since September, Snowfield has drilled 17 holes into the Mud Lake kimberlite on claims that form part of its Ticho project. The company is delineating the kimberlite in order to determine the best place from which to take the bulk sample.
Kimberlite was intersected directly below lake-sediment in several holes. Hole 15 cut 3 metres of kimberlite at a vertical depth of 16.8 metres, and hole 9 cut 3.5 metres of kimberlite at 13.7 metres depth.
The kimberlite under Mud Lake is flat-lying and has been cut over a lateral distance of 450 metres.
In early March, the company chose two areas for bulk sampling based on their accessibility. One area is adjacent to a granite scarp; the other is under Mud Lake.
Four additional geochemical and geophysical targets lie between 750 metres and 1.5 km northeast of Mud Lake, and will be drilled following the delineation work.
Snowfield is earning an 80% interest in the Ticho project claims from David Smith of Yellowknife. Smith retains a 5% diamond production royalty.
At the end of March, Snowfield optioned its 4.1-sq.-km “GTen 16” mineral claim, part of the Ticho project area, to
The claim hosts at least three airborne geophysical targets.
Consolidated Gold Win can earn a 49% interest in the property in return for paying $50,000, issuing 600,000 shares, and spending $175,000 on exploration (geophysics followed by drilling).
In September 2004, Snowfield received permission to conduct exploration drilling on the Ticho project property over five years.
Drybones Bay
The Ticho project is 10 km south-southeast of Drybones Bay, which is underlain by a 900-by-400-metre diamondiferous kimberlite.
From 1994 to 1998, Trade Winds Resources, a precursor to
In 2002,
A 250-kg sample from Drybones 2 contained 270 diamonds.
In 2003 the company applied for a land-use permit to drill in the Drybones area. The application was turned down owing to the lack of an environmental review, though New Shoshoni President Ralph Hillebrand says the problem is being resolved.
New Shoshoni is earning a 100% interest in Drybones. A 2% gross overriding royalty on diamond production is payable to David Smith.
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