Partners hit by RAM results (May 23, 2005)

Investors hammered shares in Contact Diamond (CO-T) and Trigon Exploration Canada (TEL-V) in late April, after the partners said drilling on their 870-sq.-km RAM project, north of Yellowknife, N.W.T., had failed to encounter kimberlite.

Trigon, the project operator, drilled 13 reverse-circulation holes to test 10 separate geophysical targets on the eastern portion of the property.

Previous heavy mineral sampling had identified several kimberlite indicator mineral trains (including G10 garnets) in the area. Trigon believes the indicators are derived from local kimberlite bodies with subtle geophysical expressions.

Contact Diamond owns 51% of the RAM project; Trigon, 49%. Contact can boost its stake to 65% by spending another $3 million on exploration.

The project is in the Slave Craton, southwest of the Snap Lake diamond deposit of De Beers and the Gahcho Ku joint venture of De Beers, Mountain Province Diamonds (MPV-T) and Camphor Ventures (CFV-V).

Despite the poor drill results, Trigon intends to carry out till sampling, field reconnaissance, and more drilling.