De Beers in Canada

[dimonfind]

Sudbury Contact quadruples land position in area around newest Ontario diamond discovery
Stock Symbol: SUD (TSX)

TORONTO, July 14 /CNW/ - Sudbury Contact Mines Limited reported today
that its large, recently discovered KL-22 kimberlite has been confirmed as
diamondiferous. KL-22 was previously indicated to be approximately 9.5
hectares in size on the basis of its geophysical signature. KL-22 is part of
the Company's 100%-owned Timiskaming Diamond Project, located just west of the
historic mining town of Cobalt, Ontario, 550 kilometers north of Toronto.

Largest Landholder in Highly Prospective Diamond Camp

KL-22, along with previously announced diamond-bearing kimberlite KL-01,
was discovered on Sudbury Contact's Klock Property west of the Montreal River.
An aggressive staking program has been carried out since January and as a
result the land package around the two kimberlite pipes has more than
quadrupled in size from approximately 7,500 hectares to 36,000 hectares. The
Company's past till sampling, along with alluvium sampling recently carried
out by the Ontario Geological Survey, has directed additional staking,
expanding the property position to capture areas of other likely kimberlite
intrusions. The Timiskaming Diamond Project now covers an area in excess of
65,000 hectares making Sudbury Contact the single largest landholder in the
area.
The two diamondiferous discoveries lie some 20 kilometers southwest of
the Company's 95-2 diamond deposit and are within a large area close to
infrastructure and accessed by a network of new logging roads that include a
bridge across the Montreal River. Both discoveries were made by a combination
of detailed airborne geophysics and target-specific till sampling. This work
has also identified other high priority targets that await core drilling on
the original Klock property claims.

Small Sample Yields Large Diamond Count

Petrographic and kimberlite indicator mineral analyses have confirmed
that the KL-22 kimberlite is a magmatic, highly macrocrystic hypabyssal
kimberlite exhibiting a modest peridotitic diamond signature and an
encouraging diamond carrying capacity. The discovery hole was drilled
vertically into the southern lobe of this large bilobate body, encountering
kimberlite from 21m to the end of hole at 87m. Microdiamond results from the
Thunder Bay Mineral Processing Laboratory of Kennecott Canada Exploration Inc.
were for five samples totaling 84.94kg and returned 19 microdiamonds, of which
7 could be classified as being macrodiamonds as they have at least one axis
exceeding 0.5mm, one of which exceeded 0.5mm in two dimensions. The breakdown
per sieve class is as follows:

<<
------------------------------------------------------------------
HK Facies
------------------------------------------------------------------
Sieve Class Diamonds Weight of Diamonds
(mm sq. mesh) (No.) (carats)
------------------------------------------------------------------
1.70 to 2.36 0 0
1.18 to 1.70 0 0
0.85 to 1.18 0 0
0.600 to 0.850 0 0
0.425 to 0.600 0 0
0.300 to 0.425 2 0.00236966
0.212 to 0.300 5 0.00422776
0.150 to 0.212 4 0.00134187
0.105 to 0.150 8 0.00075437
------------------------------------------------------------------
Totals 19 0.00869366
------------------------------------------------------------------
Total Processed 84.94 kilograms
------------------------------------------------------------------

To put the KL-22 and KL-01 results into context, the two discovery
reverse circulation samples from the now known higher grading Weathered TKB of
Kimberlite 95-2, yielded 9 diamonds from 77.92 kg., of which 3 were one-
dimensional macrodiamonds and one of those exceeded one millimeter in two
dimensions.

Large Tonnage Potential in Emerging Diamond Camp

The magnetic signature for KL-22 covers an area of approximately 9.5
hectares which would place it second in size in Eastern Canada to the roughly
16 hectare Victor Pipe owned by De Beers Canada Corporation. The Victor Pipe
is located in the James Bay Lowlands along the same structural trend hosting
the Timiskaming kimberlite cluster. The 95-2 and KL-01 pipes both have
approximate 5 hectare surface areas, which along with the nearby KL-22
kimberlite, potentially provides the Company with a very large tonnage
project. With other high priority targets awaiting drill testing and the large
newly acquired land package to explore, the Company is optimistic that other
diamondiferous kimberlite pipes will be discovered. An updated location map
has been posted on the Company's website, www.sudburycontact.com which shows
the kimberlites in relation to the claim package and superior infrastructure
of the project or click on the link below:

http://ir.thomsonfn.com/IRUploads/10493/FileUpload/LOCATION.pdf

On-going Regional Exploration

The company is currently receiving tenders from airborne geophysical
survey contractors to fly a detailed survey over the newly acquired ground
centered around the Klock Property. Once the anomalies have been prioritized a
helicopter-supported till sampling program will be planned and implemented.
Both of these programs can be conducted in late summer or early fall. The
combination of detailed airborne surveying and follow-up till sampling
programs has proven to be an effective exploration approach leading to the
discovery of the KL-01 and KL-22 pipes. Exploration plans being currently
formulated also include delineation drilling of the new kimberlite pipes and a
large program of anomaly testing through follow-up geophysics and core
drilling.

Kimberlite SC-118 Update

On the Quebec portion of the Timiskaming Diamond Project, kimberlite
SC-118 recently received two additional delineation drill holes. Both holes
were successful in intersecting kimberlite and microdiamond results are
expected shortly. Several high priority targets remain untested in Quebec and
will be the focus of future drilling.

Audit of Encouraging 95-2 Diamond Deposit Results Nearing Completion

As previously disclosed, the Company's 95-2 Kimberlite returned an
initial parcel of 67.35 carats of diamonds from a 652 tonne mini-bulk sample
derived from reverse flood large diameter (LDD) drilling. The preliminary
results were encouraging for the volumetrically dominant East-Central portion
of the deposit, where recovered grades averaged approximately 19.18 carats per
hundred tonnes (cpht) for the upper 24m of kimberlite, and 13.3 cpht down to
300m, which was the deepest test. The grades and diamond parcel encountered
thus far in Kimberlite 95-2 are encouraging, and have established it as
Canada's southernmost diamond deposit and certainly one of the most promising
given it's proximity to infrastructure.
The Company has engaged De Beers Canada Exploration Inc. to process and
recover the diamonds from seven audit samples of the 61 mini-bulk samples
which made-up the LDD program. Processing at De Beers Grand Prairie facility
is complete, and all concentrates have been shipped under secure conditions to
Johannesburg, South Africa to complete the audit process. Results are expected
later this month, following which the Company will be in position to have
expert valuations and grade modeling carried out, along with the first
resource calculations for the deposit. Once this work is complete, final
mini-bulk sample results will be reported along with an outline of the next
phase in 95-2's advanced evaluations.

Scientific and Technical Data

Sudbury Contact Ltd. has prepared this disclosure of diamond exploration
results using guidelines that have been recommended by the Canadian Institute
of Mining, Metallurgy and Petroleum.
Kennecott Canada Exploration Inc. Mineral Processing Laboratory is
accredited ISO 17025 by the Standards Council of Canada.
The following information relates to the Qualified Person, Quality
Control and other requirements regarding the above properties as defined under
the Canadian Securities Administrators' National Instrument 43-101:

(1) Paul Sobie, registered Professional Geologist of Ontario and Vice
President of MPH Consulting Ltd. of Toronto, is a consulting
contractor to Sudbury Contact on the Timiskaming diamond project.
He is the Qualified Person on the project responsible for the
Quality Control and reporting of project information, and as such
Mr. Sobie possesses the required qualifications.
(2) Mr. Sobie has verified the data disclosed in this press release,
including the underlying sampling, analytical and test data
underlying the disclosed results.

About Sudbury Contact

Sudbury Contact Mines Limited is an exploration and development company
with diamond and gold properties in Ontario, Québec, Northwest Territories,
Newfoundland, Nevada and Idaho. Agnico-Eagle Mines Limited (NYSE: AEM, TSX:
AGE) is currently the largest shareholder of Sudbury Contact.