Stornoway Diamond Corporation (TSX:SWY) provided an update on its exploration joint venture projects, Pikoo and Qilalugaq. These projects are subject to option agreements with North Arrow Minerals Inc. (TSXV:NAR). Highlights include a drill program completed by North Arrow Minerals in 2013, with the most significant discovery being kimberlite PK150, interpreted to be a 10 to 15 m wide, near vertical body, intersected over a 75 m strike length and open to depth and along strike. The Qilalugaq work program is expected to commence in July 2014, with an estimated budget of $3.7 million, to be fully funded by North Arrow Minerals.
As quoted in the press release:
Pikoo Project, Saskatchewan
During 2013, North Arrow completed a ten drill hole program of 2,002 meters at the Pikoo project, located approximately 120 kilometres east of La Ronge, Saskatechewan. The most significant discovery was kimberlite PK150, which is interpreted to be a 10 to 15 m wide, near vertical body, intersected over a 75 m strike length and open to depth and along strike. On November 5, 2013, North Arrow announced that a 209.7 kg sample of drill core from PK150 had returned 745 diamonds larger than the 0.106 mm sieve size, including 23 commercial sized diamonds larger than the 0.85 mm sieve size with a total weight of 0.2815 carats. The 2013 drilling program and the related diamond content analysis fulfilled the requirements of the Pikoo option work program.
Stornoway considers the early drill results from the Pikoo project to be encouraging. Stornoway has not exercised its back-in right under the Pikoo option agreement, but has indicated to North Arrow that it intends to participate in ongoing exploration and evaluation of Pikoo, to be conducted under an 80% (North Arrow) / 20% (Stornoway) participating joint venture arrangement. Exploration plans for 2014 are expected to include a kimberlite indicator mineral till sampling program designed to discover additional kimberlites within the 33,000 ha property.
Qilalugaq Project, Nunavut
The Qilalugaq Diamond Project, located on the Rae Isthmus of Nunavut, close to the hamlet of Repulse Bay, includes the Qilalugaq kimberlite pipes and the Naujaat system of kimberlite dykes. The project includes the 12.5 hectare Q1-4 kimberlite, the largest kimberlite pipe in the eastern Canadian Arctic. In June 2012 Stornoway announced an Inferred Mineral Resource at Q1-4 of 26.1 million carats from 48.8 million tonnes of kimberlite with an average +1 DTC total diamond content of 53.6 carats per hundred tonnes (cpht) extending from surface to a depth of 205m.
To fulfil the terms of the Qilalugaq option agreement, North Arrow has informed Stornoway that it intends complete a 1,500 tonne bulk sampling program at the Q1-4 kimberlite to recover a diamond parcel of approximately 500 carats of commercial sized diamonds larger than the 0.85 mm sieve size. This diamond parcel will be used to better determine diamond grade, size distribution, and value. The Qilalugaq work program is expected to commence in July of this year, with an estimated budget of $3.7 million, to be fully funded by North Arrow.