Iceberg Proves Diamond-Bearing but Shows Low Count

Despite disappointing microdiamond counts from the newly discovered Iceberg kimberlite, Indicator Minerals (IME-V, IMEEF-O) remains enthusiastic about the potential of the Darby project, where some 95 kimberlite float occurrences were found scattered across its holdings in the Pelly Bay area of Nunavut this summer.

However, the company considered the Iceberg kimberlite pipe to be a priority target, defined by a large magnetic feature measuring 11 hectares at surface and where kimberlite float and numerous G10 pyrope garnets, with favourable diamond inclusion chemistry, were recovered down-ice in till samples.

A 426-kg sample collected from the two discovery holes into the Iceberg pipe held only 24 microdiamonds, the three largest stones no bigger than a 0.6-mm sieve size classification.

The Iceberg kimberlite was tested with two angled holes spaced 490 metres apart on opposite sides of the lake-covered target. The first hole, collared on the northeast side of the anomaly and angled at minus 50 southwest, intersected 221 metres of continuous kimberlite under 27 metres of overburden.

A second hole, spotted on the southwest side and drilled at minus 60 to the northeast, returned 194 metres of kimberlite.

The Darby project covers more than 1,600 sq. km of mineral claims and prospecting permits, centred 120 km southeast of the coastal community of Kugaaruk (Pelly Bay). Indicator Minerals holds an 80% stake in the project, with private exploration and staking syndicate, Hunter Exploration Group, holding the rest and carried through to completion of a bankable feasibility study.

Teck Cominco (TCK.B-T, TCK-N) can earn a 51% controlling interest in the project from Indicator by spending $14 million over four years.

During the summer, Indicator intersected kimberlite at each of the five geophysical targets tested — Iceberg, Inferno, Stealth, Skyy and Prince.

Microdiamond results from the other discoveries will be available later this year.

Plans for Darby in 2007 include following up on select kimberlite float occurrences, additional airborne geophysical work and the drill testing of at least 10 new targets.