Nunatsiaq Online
NEWS: Nunavut June 13, 2012 - 12:59 pm

Stornoway reports 26.1 million carat resource at one of its diamond projects

"We are very pleased to have reported such a large maiden mineral resource estimate"

NUNATSIAQ NEWS

Signs point to plenty of diamonds at Stornoway Diamond Corp.’s Qilalugaq diamond project near Repulse Bay, according to a technical report released June 12.

The new report says there’s a total inferred mineral resource of 26.1 million carats, along with a possible 7.9 to 9.3 million carats.

“We are very pleased to have reported such a large maiden mineral resource estimate at a project that, with the long term positive outlook on diamond prices, is becoming increasing compelling,” Matt Manson, Stornoway’s president and chief executive officer, said in a June 12 news release.

The Qilalugaq project includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes, which have both been the focus of ongoing exploration and assessment work by Stornoway since they acquired the properties from BHP Billiton Diamonds Inc.

The Qilalugaq project, which covers 114,961 hectares of land located on the Rae Isthmus between the Melville peninsula and mainland Nunavut, is “large, easily accessible from the hamlet of Repulse Bay, and exposed at surface,” say company documents.

BHPB discovered eight kimberlites at Qilalugaq between 2003 and 2005. Then, Stornoway optioned the property in July of 2006, and discovered an additional eight kimberlites between 2006 and 2010.

All kimberlites are diamondiferous, and occur within a 26 kilometre-long corridor, the company says.

In July of 2010, Stornoway increased its ownership in Qilalugaq to 100 per cent by providing BHPB with a three per cent royalty interest in the project.

The technical report recommends proceeding to the collection of a large tonnage surface sample to establish a diamond price estimate.

Stornoway has submitted an application to the Nunavut Impact Review Board so it can move ahead with the large tonnage sample, “subject to an investment decision to proceed.”

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