Stornoway Diamond Corporation (SWY:TSX), Shear Minerals Ltd. (SRM:TSXV), and BHP Billiton Diamonds Inc. (BHP Billiton) today announced the approval of a $4.6 million exploration budget for the Churchill Diamond Project and a $400,000 exploration budget for the Churchill West Diamond Project.
Churchill Diamond Project
The 2006 exploration program at Churchill is currently underway with the mobilization of the 36-person field camp located at Josephine Lake. Ground geophysical crews will follow up selected anomalies and drilling is planned to commence in May. This year's drill program will initially test up to 25 geophysical targets located at the heads of discrete indicator mineral trains including one which contains diamonds and high-interest G10 garnets.
The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the community of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is presently owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). BHP Billiton has chosen not to participate for its share of the 2006 exploration budget and its ownership will dilute from 14% to 11.3%. Shear and Stornoway have each elected to fund the proposed program and as a result, ownership interests will increase to 52.6% and 36.1% respectively. To date the partners have drilled 39 kimberlites on the Churchill Diamond Project.
Churchill West Diamond Project
Stornoway, Shear, International Samuel Exploration Corp. (SAZ:TSXV), and BHP Billiton today announced exploration plans for the upcoming year for the Churchill West Diamond Project, Nunavut. The program will entail ground geophysics, till sampling and prospecting of selected priority targets. The work program will commence in June.
Seventy geophysical targets have been chosen for follow up from 3,658 line km magnetic-electromagnetic airborne geophysical survey completed in late fall of 2005. This survey targeted the southeastern region of the property where probe-confirmed kimberlitic indicator minerals including pyrope garnet, eclogitic garnet, chrome diopside, ilmenite and chromite have been confirmed including one high interest, subcalcic G10 garnet. Possible drill targets will be finalized once groundwork has been completed.
The Churchill West Diamond Project encompasses 398,000 acres near the community of Rankin Inlet in the Kivalliq region of Nunavut. BHP Billiton has elected not to participate for its share of the 2006 exploration budget and its ownership will dilute from 7.3% to 6.1%. Samuel, Shear and Stornoway's ownership interests will increase to 48.7%, 26.8% and 18.4% respectively.
The 2006 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.
Options Granted to Directors
Stornoway announces that it has, pursuant to its Stock Option Plan, granted to its Directors options to purchase an aggregate of 1,050,000 common shares. The options are exercisable on or before April 24, 2011 at an exercise price of $1.15.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas