Aurogin begins diamond search

Aurogin has an option to earn a 50% interest in property located north of Kirkland Lake and south of James Bay. The company based its option on the results of a recent magnetometer survey which revealed the presence of 12 “classic” circular magnetic signatures.

The newly discovered anomalies are believed to represent potential kimberlite pipes. They occur both in clusters and isolated within the appropriate geological setting, the company says.

Exploration is scheduled to be carried out this winter, and is being financed by a private placement of flow-through shares for $150,000. Aurogin plans to drill one hole in each target and 1,000 ft of follow-up drilling for each anomaly that is confirmed to be kimberlitic.

The distribution of diamonds in the glacial drift of the Great Lakes region and their origin have been discussed by geoscientists for many years. One theory suggests the source of the diamonds could be located in the James Bay lowlands at the apex of a fan formed by glacial dispersion.

Diamonds are found in pipes and dikes of kimberlite located in continental shield areas. The diamond is the rarest constituent of a kimberlite pipe, and on a world- wide basis, there are about 5,000 kimberlite occurrences, including 1,000 pipes. Only about 500 contain diamonds, and only about 50 contain diamonds in economic quantities to justify their recovery. This means that about one in every 100 kimberlites is economic. The abundance of diamonds in some of the larger, better-known pipes is as follows: Surface Carats/100Areaof pipe Name of Pipetonnes(acres) Williamson, Tanz. -22361 Orapa, Bot. -89262 Premier, S.A. -34 76 Kao, Lesotho 6-18 49 Finsch, S.A.73-86 45 Dutoltspan,

S.A.14-17 32 Batty Pipe,

N.W.T 95 Praire Ck,

U.S.A. -12 65

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