Canadian Exploration Update


Stornoway Diamond Corporation (SWY:TSX) would like to provide a brief summary of our Canadian diamond exploration activities undertaken to date during 2005.

Eira Thomas, President and CEO commented: "Together with our joint venture partners, we are in the process of completing our busiest Canadian field season ever, exploring more than 270 million acres of prospective geological terrains in Canada under a budget of $24 million, with direct contributions in excess of $15 million. The majority of our 2005 diamond results remain outstanding, with partial results expected before year-end. We have made great strides in advancing our key projects and continue to generate exciting results that point to future diamond discoveries on our landholdings in northern Canada."

Stornoway holds varying interests, both directly and through 19 joint ventures, in 33 Canadian mineral properties representing 22.6 million acres of ground. Stornoway has been involved in the discovery of 61 kimberlites since 2002. To date, 43 of 61 have been analyzed and more than one third have proven diamondiferous. During 2005 SWY undertook exploration on 24 properties (12 million acres) and our joint venture partners explored nine properties (10.6 million acres), as summarized below.

2005 Exploration Summary - SWY Landholdings

  • drilling is now complete; seven properties were drill tested with 130 holes totaling 11,018 m of core
  • kimberlite (in outcrop, drill core and/or boulders) was discovered on six properties (Aviat, Churchill, Wales Island, Kikerk, KUG and Jewel)
  • 59,500 line km of airborne geophysics flown; 205 ground geophysical grids completed
  • 5,900 till samples collected to test for kimberlite indicator minerals
  • 2,750 kg of kimberlite sampled for caustic fusion analysis for microdiamonds
  • 12,000 kg of kimberlite retrieved for extraction of macrodiamonds

In addition to exploration on their landholdings, Stornoway also undertook generative programs on or within 29 other areas representing some 250 million acres. This work investigated unsourced indicator mineral anomalies, unexplained geophysical targets and geologically prospective terrains. 

2005 Generative Exploration Summary (to date)

  • completed some 95,000 line km of airborne geophysics
  • collected in excess of 2,400 surficial sediment samples to be processed for indicator minerals
  • acquired a series of rock samples for both microdiamond and macrodiamond analysis

Partial results available to date from this 2005 generative exploration program have already been used to identify and acquire targeted landholdings thought to have the potential to host diamondiferous kimberlites. Additional results are pending and Stornoway anticipates continued property acquisition.

Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a Qualified Person under NI 43-101.

On behalf of the Board
/s/ "Eira Thomas"
Eira Thomas