Aviat Exploration Update - AV-1 Expanded In Size, Additional Kimberlites Discovered


Stornoway Diamond Corporation ("Stornoway") (SWY:TSXV) is pleased to provide the following exploration update on its 5.5 million acre Aviat Diamond Project in eastern Nunavut where the discovery of the diamondiferous AV-1 kimberlite was announced earlier this year. Summer drilling at AV-1 has identified a non-magnetic kimberlite phase, which has increased the size of the body to approximately 160 m in length and between 40 m and 60 m in width. The diamond content of this newly identified kimberlite phase will be determined through caustic fusion with results expected before year-end. In addition, prospecting resulted in the discovery of new kimberlite float occurrences up ice from AV-1 and a new outcropping kimberlite (AV-2), some 4 km from AV-1. AV-2 was tested with a single inclined drillhole, which encountered multiple intercepts of kimberlite. Material from AV-2 will also be submitted for caustic fusion and indicator mineral analysis. A second drillhole tested a magnetic anomaly 75m south-southwest of the AV-2 showing and encountered two separate intersections of kimberlite. The size and nature of these kimberlites and their relationship, if any, is unknown at this time. Numerous additional targets have also been identified from ongoing airborne geophysical surveying and will be prioritized for drilling based on 2003 summer sampling results. 

President Eira Thomas commented, "We have made significant progress in our initial investigations of this large, prospective land package. AV-1 continues to look promising and we are excited about the discovery of a new kimberlite exposure during this first phase of assessment. Over the next six months we will be receiving, compiling and interpreting an extensive amount of new data that will be used to generate additional targets for a major drilling campaign set to commence in 2004".

Approximately $5 million is being spent at Aviat in 2003 on an aggressive program that includes the collection of roughly 2,300 till samples for indicator minerals, 55,000 line km of airborne magnetics, 1,900 line km of airborne electromagnetics, prospecting, ground geophysical surveying, the collection of approximately 8 tonnes of kimberlite from the surface exposure of AV-1 and 1,102m of core drilling. A larger drilling campaign is planned for early in 2004, following the receipt and interpretation of data from 2003.

Previous work on the Aviat property was limited to a $500,000 sampling and prospecting program that resulted in the discovery of the AV-1 diamondiferous kimberlite outcrop, located approximately 50 km west of Igloolik. Initial samples collected from AV-1 yielded 1,614 diamonds from 1,136 kg of kimberlite (see press release of August 26,2003 for further details).

The primary objective of the 2003 program was to evaluate the potential for additional diamondiferous kimberlites on the Aviat Project using a variety of exploration tools, including kimberlitic indicator mineral (KIM) sampling and airborne geophysical surveys. Regional till sampling density was increased throughout the landholdings and detailed sampling was carried out in areas that returned anomalous KIM samples in 2002. Previous results outlined a wide region of scattered KIM responses suggesting multiple kimberlite source bodies within the project area. In addition, a prominent, east-west trending corridor of elevated KIM counts that includes AV-1 was targeted for more detailed sampling. Initial sampling results are expected before year-end.

The second objective of the 2003 program was to better determine the shape and size of the AV-1 kimberlite through drilling. The exposed portion of the AV-1 discovery outcrop measures 13.5 m x 76.5 m and is associated with a prominent magnetic signature. A second, equally prominent, magnetic response lies under a small shallow lake immediately west of the outcrop. AV-1 was tested with seven angled holes from four set-ups. Holes 03-AV1-01, 02 and 07 tested the magnetic anomaly associated with the AV-1 outcrop itself. Holes 03-AV1-03 through 06 tested the second magnetic response situated immediately west of the AV-1 outcrop. Hypabyssal kimberlite, similar in character to the outcrop, was intercepted in all holes except 03-AV1-05 and shows a good correlation with the double lobed magnetic high anomaly identified from ground geophysical surveying. A second, non-magnetic kimberlite phase was intercepted in holes 03-AV1-01 through 03, 05 and 07. The non-magnetic phase has been logged as a brecciated macrocrystic kimberlite, which contains grains of altered olivine, garnets and mantle nodules. Ongoing airborne electromagnetic surveys in the vicinity of AV-1 will determine if this non-magnetic kimberlite phase has a measurable response. 

Kimberlite has now been intersected over a horizontal distance of 195 m and geological interpretation suggests a body measuring 40 m to 60 m in width over a distance of 160m at surface. The kimberlite remains open to depth and to the east. Additional drilling will be required to more accurately delineate the size potential of AV-1. Samples of the macrocrystic kimberlite breccia and all other kimberlite intercepts have been collected for indicator mineral analysis and caustic fusion. Final results are expected before year-end.

In addition to the drilling at AV-1, the outcrop was stripped of overburden, mapped, photographed and a representative mini-bulk sample of approximately 8 tonnes was collected from surface exposures and will be shipped south later this week. Various processing options for this sample are being considered.

Field checking of some preliminary airborne magnetic targets was undertaken, which resulted in the discovery of a new kimberlite body, AV-2, situated some 4km southeast of AV-1. Limited ground magnetic surveys were also conducted over a selection of unexplained, on-land airborne magnetic anomalies.

AV-2 was tested with a single inclined drillhole (03-AV2-01) that intersected 2.63 m of kimberlite beneath the surface exposure, followed by separate intersections (9.3 m and 3.14 m) of kimberlite. The size and nature of the kimberlite represented by these drill intercepts is unknown at this time. Material from AV-2 will be submitted for caustic fusion and indicator mineral analysis.

A second drillhole (03-AV2-02) tested a magnetic anomaly 75 m south-southwest of the AV-2 showing and encountered two separate intersections of kimberlite (2.2m and 6.5m in length). The size and nature of these kimberlites, and their relation to the kimberlite intersections in 03-AV2-01, if any, is unknown at this time. A third hole, 03-AV2-03, testing a topographic feature situated 80 m north-northwest of 03-AV2-01, did not intercept kimberlite.

Results from the extensive regional exploration program conducted during 2003 will be received over the next six months and will be used in the planning of an aggressive follow up exploration program for 2004.

Stornoway holds varying interests in more than 7 million acres of prospective diamond properties throughout the Melville Peninsula, including a 70% interest in the 5.5 million acre Aviat Project. Aviat is a joint venture between Stornoway, BHP Billiton (20%) and Hunter Exploration Group (10%). The 2003 field program is under the supervision of Dean Besserer, P. Geol. of APEX Geoscience Ltd., a Qualified Person under NI 43-101.

On behalf of the Board
/s/ "Eira M Thomas"
Eira M Thomas, President

For further information, please contact the Company at 604-687-7545 or (888) 338-2200
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