DIAMOND PAGE — Winspear finances Snap Lake program

Of the $2.5 million budgeted for diamond exploration for the remainder of the year, Winspear Resources (WSP-V) intends to spend $1.5 million in the Snap Lake area of the Camsell Lake property in the Northwest Territories.

The property is 225 km northeast of Yellowknife and 110 km south of the original Point Lake kimberlite discovery of BHP Diamonds and Dia Met Minerals.

Winspear recently announced the highest carat values ever reported in the Territories: US$301.43 per carat. The 226.72-carat parcel of diamonds was recovered from a 199.7-tonne mini-bulk sample of the NW Snap Lake kimberlite dyke.

The grade of those diamonds exceeding a cutoff equivalent to a square mesh size of 1.2 mm was 1.14 carats, resulting in an average value of US$343.63 per tonne. The parcel of stones included 21 diamonds weighing more than 1 carat, with the three largest stones weighing 10.87, 8.63 and 6.03 carats.

The 199.7-tonne sample was collected from two surface pits spaced 235 metres apart on the NW dyke, on a peninsula that juts into the northwestern part of Snap Lake.

The NW dyke is interpreted as being a shallow, easterly dipping (12-15) kimberlite body extending beneath Snap Lake. This body has been intersected by previous drilling over an interpreted strike length of 800 metres and a downdip length of 1,000 metres; the average thickness is 2.4 metres.

Winspear has commissioned MRDI Canada, a division of mining consultant H.A.

Simons, to identify potential mining methods for the NW dyke, as well as processing and infrastructure requirements. The study will also review the existing geological database and recommend future work.

Winspear will conduct further till sampling, mapping and prospecting in the Snap Lake area at an estimated cost of $430,000. The company’s exploration team will once again be joined by Nickolai Pokhilenko and several of his colleagues from the Diamond Research Institute in Novosibirsk, Siberia. In addition, up to $1 million will be directed towards drilling, initially on the northwestern shore and possibly on several small islands.

Winspear is increasing its interest in the project to 68% by financing all exploration work. Aber Resources (ABZ-T) holds the remainder.

Elsewhere in the Territories, Winspear has begun a $540,000 program on the Carat property, which adjoins the Ekati mine. The company can earn up to a 70% interest in the 92,000-acre property from Tyler Resources (TYS-T). A 3,900-line airborne survey

has been flown over the property, and regional till sampling is under way.

Winspear is also spending $490,000 on exploration work at its 196,000-acre Hilltop project, adjacent to the Camsell Lake property. Results from a 8,900-line-km airborne survey are being reviewed.

The Vancouver-based company has 32 million shares outstanding, or 37 million on a fully diluted basis, with $5.8 million in its treasury.