Stornoway Canada diamond play may hold 10 mln ct

13 08 2010

The small Vancouver-based miner said a sample of about 20 tonnes of diamond-bearing ore collected last year had yielded 6.1 carats, indicating a diamond content of 30 carats per hundred tonnes.

The largest diamond was a 0.37 carat light-brown irregular stone, while about 25 pieces of a larger, but mechanically, broken, colorless diamond were also retrieved, Stornoway said.

“Mini-bulk sampling to date has established a modest grade, but it is a large, outcropping ore body … with the potential to yield a 10-million-carat-plus resource,” Stornoway chief executive Eira Thomas said in a statement.

Stornoway’s shares were up 1.4 percent at 35.5 Canadian cents on the Toronto Stock Exchange.

The company is now considering taking a larger bulk sample to get a better idea of the diamond concentration.

To secure its 50-percent stake in the project, which is located north of Repulse Bay in the territory of Nunavut, Stornoway must spend C$9 million by 2012.

BHP also owns the high-grade Ekati diamond mine in the neighboring Northwest Territories.

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