Over the life of the project, the exploration focus has been to discover and test kimberlite targets in search of an Ekati or Diavik-scale deposit. Numerous smaller-sized bodies have been discovered, indicating potential for multiple Jericho-sized deposits. Diamonds North will shift the focus of the project to evaluating the potential for smaller high-valued deposits.

0.74 Carat Diamond

Diamonds North holds 100% interest in a total of 39 kimberlites on its Victoria Island claims. More than 80% of the Victoria Island kimberlites are diamondiferous, with several bodies returning significant diamond counts and favourable stone size distribution, illustrating the potential for smaller high-value deposits. Examples of small diamond mine opportunities in northern Canada inc De Beers Canada's Snap Lake deposit (in-situ value of US$3.78 billion based on 18MT grading 1.46 ct/t)*. A 680 kg sample from King Eider kimberlite returned 1.6 ct/t, including a 0.74 carat diamond. Based on five drill holes and geophysical interpretation, Diamonds North estimates that on a preliminary and conceptual basis, the King Eider kimberlite has the potential of attaining 4 to 5 million tonnes. Other important targets include the Snowy Owl kimberlite and the Southeast Galaxy trend. Combined, these targets have the potential to deliver an additional 15 to 20 million tonnes of kimberlite on a conceptual basis. Diamonds North will continue to evaluate the potential for smaller, high-valued deposits on Victoria Island.

* www.debeerscanada.com