Shear Commences Drilling at Churchill Diamond Project
8/23/04
Up to 20 Targets to be Tested in First Phase - of Ongoing Drilling Program
Shear Minerals Ltd., Stornoway Diamond Corporation, and BHP Billiton Diamonds Inc. announced that exploration drilling on the Churchill Diamond Project has commenced.
The current program is the first phase in an ongoing drilling campaign to identify the source the property's high diamond potential mineral chemistry. It is designed to test a variety of geophysical anomalies. More than 20 priority targets have been selected for drilling over the next six weeks. All of the targets are located within three kimberlite indicator mineral corridors identified from the 2003 sampling campaign.
Drill targets were selected using a combination of detailed airborne Magnetics and Electromagnetics; heavy mineral sample results; and glacial interpretation and mapping. Additional geophysical targets exist within these corridors, including 15 located under lakes. These are scheduled to be tested in a second phase of drilling in spring next year.
"The joint venture has put in place an aggressive $10 million diamond exploration budget for the 2004 season at Churchill, one of the largest in Canada," says Pamela Strand, President and CEO of Shear. "Today's drilling marks the commencement of an intensive drill program that will continue through 2005 and will test a large number of targets found in association with the exciting mineral chemistry present on the property."
Sixteen kimberlites at Churchill and two kimberlites at Churchill West were identified in 2003, over half of which, proved diamondiferous, establishing the region as Canada's newest diamond district. None of the kimberlites drilled to date are located within the newly identified indicator mineral corridors, nor do any of them appear to be the source the high interest mineral chemistry identified on the property in 2002 and 2003. (Please see the Technical Report for Churchill Diamond Property filed July 6, 2004 on www.sedar.com).
The 8.5-million acre Churchill Diamond Project is a new and evolving kimberlite district which Shear and its joint venture partners discovered. Located near the community of Rankin Inlet in the Kivalliq region of Nunavut, this key Eastern Arctic property has been instrumental in the recent staking rush in the region, one of the largest ever in Canada. Shear has a 51% interest in the project and is operator. Stornoway Diamond Corp. and BHP Billiton Diamonds Inc. have 35% and 14% interests respectively. The 2004 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.
On behalf of the Board On behalf of the BoardSHEAR MINERALS LTD. STORNOWAY DIAMOND CORPORATION/s/ "Pamela Strand" /s/ "Eira Thomas"Pamela Strand, P. Geol. Eira ThomasPresident President
This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.
