Stornoway And Shear Option Chesterfield Inlet Claims, Nunavut
August 10, 2009
Stornoway Diamond Corporation (SWY:TSX) ("Stornoway") and Shear Minerals Ltd.(SRM:TSXV) ("Shear") today announced the signing of an indicative proposal with Kennecott Canada Exploration Inc. ("Kennecott") to jointly explore the northern portions of the Churchill Diamond Project, now referred to as the Chesterfield Inlet Diamond Project.
"This new partnership will enable the exploration of the northern regions that have not seen significant exploration compared to the balance of the Churchill Diamond Project," says Shear President and CEO Pamela Strand. "A comprehensive geophysical and geochemical review is underway and crews will commence field follow up shortly thereafter during this field season."
The Chesterfield Inlet Diamond Project comprises approximately 70,000 acres located within and near the indicator mineral dispersion North Corridor of the larger Churchill Diamond Project. The Project area is located approximately 15 km north of the Josephine River Corridor and portions can be accessed by gravel road from the community of Chesterfield Inlet.
Under the terms of the agreement, Stornoway and Shear have jointly granted Kennecott the right and option to acquire, subject to existing underlying royalties, up to a 70% interest in the diamond rights to the Chesterfield Inlet Diamond Project ("Project"). Kennecott has a First Option to acquire a 51% interest in the Project by incurring $100,000 before Dec 31, 2010 and an additional $1,900,000 before December 31, 2012. If the First Option is satisfied Kennecott has an option to complete a Second Option whereby Kennecott can earn an additional 19% interest in the Project by incurring an additional $4,500,000 in exploration expenditures before December 31, 2016. Shear will be the Operator during the First Option.
The main Churchill Diamond Project and Chesterfield Inlet Diamond Project is owned approximately 62.3% by Shear and 37.7% by Stornoway and is comprised of the diamond rights to more than 760,000 acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. At Churchill, work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tonne. The 2009 field program is under the supervision of Pamela Strand, P. Geol., a Qualified Person under NI 43-101, who has reviewed and approved the contents of this news release.
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This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Any statements made regarding a NI 43-101 Preliminary Assessment of a project includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Assessment will be realized. References to NI 43-101 Resource Calculations are Mineral Resources and are not Mineral Reserves and therefore do not have demonstrated economic viability. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the