Diamonds / GTEN16

Geological Reports

The area is located some 55 kms southeast of Yellowknife, NWT (see Figure 1). High Sense Geophysics on behalf of Avance International Inc. originally flew the Gten-16 block in January of 1995. The survey was flown using a line spacing of 100 meters on north south lines. Flight lines were controlled using a differential GPS system. Sensor height was 30 meters above ground.

Following this airborne survey, two ground magnetic surveys were carried out in the area. This work has been described by Glen MacDonald, P.Geo in a report written in August 2002.

The report shows the results of these two ground surveys but does not give the UTM locations for the grids. The ground results clearly show the presence of two anomalies.

As part of Snowfields agreement with Diamonds North all of the Gten blocks were flown in 2003 with a helicopter-borne EM system. This survey was performed using Meridian Geosciences' "Hummingbird" Magnetic/Electromagnetic system.

This is a multi frequency in-phase and quadrature EM system utilizing three coplanar and two coaxial coils. The coplanar frequencies are 980, 6600 and 34000 Hz. The coaxial frequencies are 880 and 7000 Hz respectively.

The data covering this area was interpreted on a line-by-line basis in profile form with reference to the magnetic contour plan. All EM channels were examined.

The magnetic and electromagnetic data covering this area is shown on the attached plan. This plan also shows the positions of the interpreted anomalies. A list of these anomalies together with their UTM positions and ratings is shown below in Table 1.

Target 1 (T-1) is located in the center of the area and is underlain by a large lake. The EM response over the lake can be clearly seen at the higher frequencies but more interestingly there is a response from the lower frequencies.

An inversion of the data carried out by Meridian shows the general area to exhibit a distinct low resistivity response.

This low resistivity feature would be typical of a conducting kimberlite crater facies zone. However it is also typical of lake bottom sediments.

In the Mud lake area some of the lakes sediments seem to be high in magnetite and exhibit distinct magnetic signatures.

The main magnetic anomaly at T-1 (Gten-16) does however extend beyond the edge of the lake.

Table 1
Gten -16 Target Locations

Target 2 (T-2) is to the west of T-1 and is also partially underlain by a small lake. It also exhibits an EM response similar to T-1.

Target 3 (T-3) farther to the west is located at the western edge of a large lake and also has a distinct EM signature. The EM response however appears to be confined to the actual anomaly and does not extend into the lake.

These three targets should be tested by drilling. The remaining targets, especially Target 5 could also be tested if there are sufficient funds.

Figure -1 - Location map