Contact Diamond and Trigon provide IC-LO and RAM-SHU joint venture updates24 February 2006
Contact Diamond Corporation (TSX: CO) is pleased to provide an update on its IC-LO and RAM-SHU joint venture properties located in Nunavut and the Northwest Territories respectively. Each project is a joint-venture with Trigon Exploration Canada Ltd. (TSX - V: TEL)
Highlights:
- Kimberlitic indicator trains with implied local sources confirmed
on each of IC, RAM and SHU properties after 2005 sampling
campaigns.
- IC 2006 follow-up program agreed by joint venture for both
diamonds and the 2005 polymetallic discovery.
- Source of RAM kimberlite indicator anomaly narrowed to 6 square
kilometer area.
- Joint venture approves 2006 drill program on two high priority
targets identified on SHU property.
IC-LO Project
The IC and LO properties are located southeast of the hamlet of Kugaaruk, Nunavut. Trigon is the operator of IC and LO and holds a 51% interest in the project. Contact Diamond currently holds a 49% interest. Upon sole-funding an additional $76,000 Contact will have earned a 51% interest in the project, and has the right to earn up to 60% by funding a further $3 million of exploration expenditure.
Diamond Exploration
On May 4 2005, Trigon and Contact Diamond announced the discovery of a concentration of kimberlite indicator minerals (KIMs) on the IC property. These grains included G10 garnets and one pyrope garnet showing remnants of kelyphite, indicative of a nearby, potentially diamondiferous kimberlite source. Follow-up work in 2005 included a 5,200 line-kilometer airborne survey over the discrete area where the KIMs had been found, and in-fill till sampling to better resolve the KIM anomaly. Interpretation of the airborne geophysics has identified 34 anomalies, of which 16 are considered high priority kimberlite targets (press release of October 11, 2005). Results from 120 in-fill till samples have now been received, and a full suite of KIMs has been recovered. This suite includes pyrope garnets, eclogitic garnets, ilmenites, chromites and chrome diopsides. Microprobe analysis of these grains is currently underway in order to establish their diamond prospectivity.
The distribution of KIMs recovered from the in-fill sampling confirms the existence of an indicator mineral train and the likely presence of kimberlite source or sources on the IC property. An early summer program of ground geophysical surveys and target verification is currently being planned, to be followed by drill testing if warranted.
Polymetallic Showing
During the 2005 IC summer program, a 10 metre by 5 metre area of felsenmeer float (frost-shattered boulders) comprised of rusty angular brecciated blocks of quartzite containing abundant fracture-filling and disseminated sulphide mineralization (press release dated October 11, 2005) was discovered. A grab sample sent to Activation Laboratories for multi- element analyses was found to contain the following:
1220 g/t Silver, 1.5g/t Gold, 0.70% Copper, 2.51% Zinc
The mineralization appears to be associated with a 15 kilometre long magnetic trend, visible in the airborne geophysical data. Trigon and Contact Diamond have agreed a follow up program for this discovery including confirmatory sampling and geological mapping along the geophysical trend. This will be followed by ground geophysical surveys and drill testing if warranted. The IC polymetallic program will run concurrently with the diamond exploration program.
RAM-SHU Project
RAM is a diamond exploration project located in the Slave Craton of the NWT approximately 140 kilometres northeast of Yellowknife. The SHU property is centered approximately 120 kilometres east of Yellowknife in the Southern Slave Craton and comprises part of the RAM project, lying within the area of interest defined by the RAM joint venture agreement. Trigon is the operator of RAM and SHU and holds a 46.77% interest in the project. Contact Diamond holds a 53.23% interest.
Previous diamond exploration at RAM by Trigon and Contact Diamond has identified high-interest KIM anomalies with a strong proportion G10d pyrope garnets indicative of a nearby diamondiferous kimberlite source. Airborne geophysics followed by drilling in the spring of 2005 failed to find the source of the anomalies. During the 2005 field season an additional 204 heavy mineral samples were collected on the RAM property in order to precisely resolve the individual kimberlite indicator mineral trains and to isolate their source areas. The results from this work have now been received and the new data confirm the cut-off of KIM trains on the RAM property and narrow down the size of the suspected source area to approximately 6 square kilometres. Follow-up work in 2006 will comprise predominantly ground-based exploration techniques with the purpose of identifying kimberlite bodies within this focused area.
Previous exploration at SHU has also identified KIM anomalies, and up to 15 geophysical targets from airborne magnetic surveying (press release of July 5, 2005). During the 2005 field season 114 in-fill samples were collected on closely spaced lines in order to constrain the source area of the KIM train. The program also included prospecting and ground checking of geophysical targets. Results of this sampling have now been received and confirm a very well constrained KIM train appearing to emanate from two high priority geophysical targets. The joint venture partners have agreed a work program including drill testing of these targets. It is anticipated that this program will be carried out in conjunction with the RAM summer program.
Scientific and Technical Data
The exploration work on the RAM, SHU, IC and LO properties is supervised by Raymond Ashley, P. Geoph. Mr. Ashley is an Officer and Director of Trigon and is a qualified person under National Instrument 43-101. Till samples were processed at the Saskatchewan Research Council in Saskatoon, SK and recovered grains were probed at CF Mineral Research Ltd. of Kelowna, B.C.
About Contact Diamond Corporation
Contact Diamond Corporation is an exploration and development company with diamond properties in Ontario, Quebec, Northwest Territories and Nunavut. Timiskaming, at the Ontario-Quebec border, is its leading project. Agnico- Eagle Mines Limited (NYSE: AEM, TSX: AEM) is currently the largest shareholder of the corporation.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "potential", "estimate", "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, the lack of a quoted market for diamonds, the possibility of project cost overruns or unanticipated costs and expenses, a history of net losses, dependence on the support of a significant shareholder, uncertainties relating to the availability and costs of financing needed in the future and other factors usual to the mining industry. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information: Matt Manson, President & CEO, David Smith, Investor Relations, (416) 644-2050
Source: newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
