Stornoway Announces Exploration Drill Program At Hammer Property, Nunavut
May 25, 2011
Stornoway Diamond Corporation (TSX-SWY) is pleased to announce plans for an upcoming exploration drill program at the Hammer Property located within the Coronation Gulf/North Slave Diamond District of Nunavut. The Hammer Property is a joint venture between Stornoway (75% and operator) and North Arrow Minerals Inc. (TSXV-NAR; 25% participating) and hosts the Hammer kimberlite, which was discovered by prospecting in July 2009 (Stornoway press release dated July 30, 2009). The Hammer kimberlite has not yet been drill tested, and the upcoming program will be designed to delineate its size and diamond content for the first time. Concurrently, Stornoway intends to drill for the presence of additional undiscovered kimberlites associated with kimberlitic mineral trains that have been identified on nearby claims owned 100% by Stornoway.
Stornoway's flagship property is the 100% owned Renard Diamond Project in north-central Quebec, where a Feasibility Study and an associated Environmental and Social Impact Assessment are on track for completion in the third quarter of this year. On April 26, 2011, Stornoway announced a $5.6 million budget for complimentary grass roots exploration at several additional projects elsewhere within Canada where the potential exists for new kimberlite discoveries. The 2011 Hammer drilling represents an expenditure of $1.3m within this exploration program.
The Hammer Property is located approximately 500km north of Yellowknife, Northwest Territories (see map at www.stornowaydiamonds.com/Coronation_P1_v2_2.jpg) and was acquired by the joint venture in October 2008. The Hammer kimberlite was first identified as a topographic anomaly at the head of a kimberlitic indicator mineral train with strong diamond inclusion chemistry. In 2009 weathered kimberlite breccia within hand dug pits was confirmed in bedrock at the site, in addition to numerous scattered kimberlite occurrences of surface float and frost heaved kimberlite fragments, and a single micro-diamond was recovered from a 6 kilogram hand sample. The true nature and size of the body is not known at this time. However, a ground geophysical survey completed in the fall of 2010 has confirmed a significant magnetic response associated with the topographic feature, which measures 225m long by between 15 and 100m wide and has a surface expression of approximately 1 hectare. The goal of the program will be to delineate the true size and shape of the body, test for multiple phases of kimberlite, and collect sufficient samples to permit an estimate of diamond content. All required permits are either in place, or expected shortly, and mobilization is planned for the first week of June.
Adjacent to the Hammer Property, on claims owned 100% by Stornoway, past surficial sampling work has suggested the presence of other kimberlite bodies that have yet to be discovered. Stornoway plans to drill test at least one of these well-defined indicator mineral trains in 2011, with the high possibility of discovering an additional new kimberlite pipe with diamond potential. Within the Coronation Gulf/North Slave Diamond District, Stornoway holds variable interests in ten known kimberlites. A review of existing data suggests that several of these bodies would benefit from additional test work, and Stornoway expects to drill and re-sample at least one of the 100% owned kimberlite pipes during 2011, subject to logistical considerations.
About the Coronation Gulf/North Slave Diamond District
Some 17 kimberlites were previously known to exist in the general Coronation Gulf/North Slave Diamond District, with Stornoway holding variable interests in ten of them. The diamond contents of individual bodies range from barren to highly diamondiferous. The barren bodies tend to be ilmenite dominated (e.g. Kikerk 1, Kikerk 2, Thrift) while those with elevated diamond counts have a more interesting indicator mineral population including pyrope garnet (e.g. Artemisia, Knife, Potentilla). Within the diamondiferous kimberlites, grades (established from a variety of sampling programs by several companies) range from less than 10 carats per hundred tonnes ("cpht"; e.g. Caltha, Perseus) to 10-30cpht (e.g. Artemisia, Knife), with portions of the Anuri pipe reportedly reaching 78cpht. No development work on any kimberlite has taken place to date, although large tonnage sampling programs have been undertaken by De Beers and Rio Tinto (through Kennecott Canada Inc.) at the Knife and Anuri kimberlites respectively.
About Stornoway Diamond Corporation
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 200 kimberlites in seven Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101. Mr. Hopkins has approved the contents of this release.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Matt Manson"
President and Chief Executive Officer
For more information, please contact Matt Manson (President and CEO) at 416-304-1026
or Nick Thomas (Manager Investor Relations) at 604-983-7754, toll free at 1-877-331-2232
Pour plus d'information, veuillez contacter M. Ghislain Poirier, Vice-président Affaires publiques de Stornoway au 418-780-3938, firstname.lastname@example.org
This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law.
Forward-looking statements relate to future events or future performance and reflect current expectations or beliefs regarding future event. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements
All forward-looking statements are based on Stornoway's or its consultants' current beliefs as well as various assumptions made by and information currently available to them. Many of these assumptions are set forth in the news release and include: (i) estimates of the timing to complete a Feasibility Study and an associated Environmental and Social Impact Assessment for the Renard Diamond Project; (ii) the potential discovery of new kimberlite camps close to infrastructure; (iii) future exploration plans; and (v) exploration resulting in the discovery of one or more diamondiferous kimberlites. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
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