Northwest Territories

DIAMONDS – In an exploration update released Aug. 26, Margaret Lake Diamonds Inc. said its exploration efforts are focused on the 23,199-hectare Margaret Lake property located some 300 kilometers (186 miles) northeast of Yellowknife, NWT. Management considers this property to be highly prospective for new diamond discoveries, as it is immediately north of discoveries by Kennady Diamonds Inc., and only 10 kilometers (six miles) from the Gahcho Kué diamond project being developed by De Beers and Mountain Province Diamonds Inc. This is within a 90-kilometer by 40- kilometer (56 miles by 25 miles) diamond field that also contains the Snap Lake mine operated by De Beers. In addition, the Margaret Lake property contains several indicator anomalies based on previous work done in the 1990s, and a number of untested kimberlite-like EM and magnetic anomalies. Kennady Diamonds has demonstrated that utilizing new exploration tools, like helicopter-borne gravity gradiometry, which was not available during the great diamond rush in the 1990s, can lead to highly rewarding discoveries. Margaret Lake Diamonds is proceeding with a similar gravity survey and strategy. The HeliFALCON(R) gravity gradiometer system has been contracted to fly a 75-meter-line spacing survey at a nominal 35 meters above terrain at 60-70 knots (110 - 130 km/h). This will provide high-definition gravity gradiometry and magnetics. MLDI plans to use this data to direct focused ground surveys designed to define kimberlite-like drill targets. Although Margaret Lake Diamonds contracted the HeliFALCON(R) survey and paid the required deposit in the first quarter of this year, the survey has been unfortunately delayed due to technical issues with the system. MLDI has now been advised the survey will commence this week as the system is now operating effectively. The survey will take about two weeks to complete. To enhance and streamline the final processed gravity gradient product from the HeliFALCON(R) system, MLDI commissioned a digital terrain model together with detailed bathymetry of the property using WorldView2 high-resolution satellite imagery. Historically, other explorers have waited until after the gravity survey has been completed to perform a bathymetric survey, thus delaying the detailed interpretation of the gravity data. The terrain has also been modelled to a superior level and this will aid in refining interpretation and target definition. This work has been completed and the final product has been made available to the HeliFALCON(R) contractor. To capture an additional diamond indicator mineral train identified during a review of past work in the area, the ML property has been expanded to the north by staking four additional claims totaling 3,483 hectares (8,607 acres). This brings the total land package on which DIA is exploring to 23,199 hectares (57,325 acres). The objective of the current geophysical survey is to locate kimberlites analogous to those on the adjacent property of Kennady Diamonds Inc., which have yielded spectacular results, as detailed in recent news releases by Kennady. Christopher Campbell of Campbell & Walker Geophysics Ltd., consulting geophysicists to Margaret Lake Diamonds, has reviewed the historic 1993 and 1997 DIGHEM data available from assessment reports, which cover the Margaret Lake property on line spacings ranging from 50 meters to 250 meters. As a result of this analysis, 27 anomalies have been identified as potential kimberlite signatures worthy of follow-up work. This information will be further reviewed in context of the new geophysical data when it comes available.