New Diamondiferous Kimberlite Intersections At Churchill


Stornoway Diamond Corporation (SWY:TSX) and Shear Minerals Ltd. (SRM:TSXV) are pleased to report that a bedrock source for the diamondiferous till sample PST003 has been identified during the first phase of drilling at the Churchill Project. A total of 303 diamonds, including four macro diamonds were recovered from a composite 22.8kg sample of kimberlite collected from seven drill holes that tested the PST003 anomaly. Drill testing of a geochemical target located 3.5km north of PST003 also intersected kimberlite and returned 100 diamonds, including one macro diamond from a 5.65kg sample. 

At the diamondiferous till location PST003 (see April 10, 2006 press release) seven holes were completed (380m) from three different set ups each approximately 50m apart. Nine kimberlite intersections, averaging 0.75m, were drilled. All seven holes were located at the head of a high interest G10 indicator mineral dispersion train measuring 550m wide and 1.2km long within the Sedna Corridor. The kimberlite intersections coincide with a property scale set of 040o trending lineaments which can be traced with geophysical and air photo data sets. The kimberlite trends NE-SW and appears to dip steeply to the east and is open at depth and along strike. (An aerial photo showing the drill sites and samples will be available at the Shear Minerals website).

An additional hole (94m) was drilled in the MSC-19 area located to the 3.5km northeast of PST003. At this time it is uncertain whether the 1.48m intersection at MSC-19 is an extension of PST003. Overburden at both drill areas ranged from 0.2m to 4.9m. Shallow hand dug pits at site PST003 have unearthed in situ kimberlite. Samples were collected from the shallow pits and will be submitted for diamond processing. Further test pits will be dug in both areas later in the summer to collect larger samples. 

"By drilling this new group of kimberlite at Churchill we have been able to develop an understanding of its setting, geometry and physical properties," says Shear President and CEO Pamela Strand. "This knowledge is currently being applied to the 19 additional high interest areas on the property that we have isolated for diamonds. We are now using detailed geophysical methods to model whether these kimberlites widen or blow into pipes. Several encouraging targets have been identified for drilling in August."

Eira Thomas, President and CEO of Stornoway commented: "We are pleased that a bedrock source has been identified for the anomalous till sample and are encouraged that the small sample has returned significant diamond counts."

Selected samples of the kimberlite drilled at PST003 have been examined petrographically by Mineral Services Canada Inc. The samples all have similar characteristics and are described as being of magmatic origin and containing abundant olivine macrocrysts (up to 10mm in diameter), abundant olivine phenocrysts, phlogopite, and common mantle derived garnets (often with alteration to kelyphite) within a matrix of olivine microphenocrysts, opaques, perovskite and carbonate. Some samples show evidence of flow differentiation and secondary veining of carbonate, magnetite and serpentine. Based on the samples examined, the kimberlite drilled is interpreted to have a high diamond carrying capacity, and is similar in character to the kimberlite fragments recovered in till sample 05PST003 and float sample 05FWR006 from the Josephine River Corridor.

The summer field season is currently underway and involves till sampling, prospecting, ground geophysics, structural interpretation and mapping. An on-site indicator mineral processing facility has been commissioned to fast track this year's sample results. Results will be used to prioritize targets for the second phase of drilling in August. 

Details of Diamond Results

Samples were submitted for diamond analysis to the Saskatchewan Research Council Geoanalytical Laboratories accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion. The majority of the diamonds were described as clear and colourless and were dominated by octahedron shapes. For photos of the kimberlite and the diamonds please visit Diamonds were recovered as follows:

¹ The three largest diamonds measured 0.84x0.70x0.54 mm (white clear octahedroid); 1.10x0.62x0.18mm (yellow broken octahedroid); 0.96x0.52x0.48mm (white included octahedron).
² The three largest diamonds measured 0.72x0.50x0.50mm (colourless octahedron); 0.64x0.48x0.48mm (colourless); 0.60x0.30x0.28mm (white octahedron, broken).


Below is a table with details of the drill intercepts:


The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). To date Shear and its partnersthe partners have drilled 41 kimberlites over a wide area on the Churchill and Churchill West projects. The 2006 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

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