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The Ualliq property, located in the Pelly Bay region of Nunavut, Canada’s newest diamond district, is a joint venture between International Samuel and Diamonds North Resources Ltd.
Under the terms of the option agreement, International Samuel is earning a 30% interest in the property by issuing 2,000,000 shares to Diamonds North and incurring $3,000,000 in expenditures on the property over the next four years. In addition, for each of the first four kimberlite bodies discovered on the property, International Samuel shall issue 250,000 common shares to Diamonds North. Diamonds North will operate the project.
Kimberlite indicator minerals on the property define several anomalous regions including a discrete 60 kilometre-long area with the potential for multiple kimberlite intrusions. A strong cut-off associated with several kimberlite indicator mineral clusters supports this idea for multiple kimberlites on the Ualliq property. Based on the mineral chemistry of the garnets from the area and the proximity to Diamonds North’s Amaruk property, any kimberlites discovered in the area have potential to be diamondiferous.
To date, 330 targets have been identified on the Ualliq Diamond property in Nunavut from initial airborne geophysical interpretation, of which approximately 80 are rated as high to moderate priority. Significantly, 47 of the targets range in size from 2 to 7 hectares. More than 20,000 line kilometres of airborne geophysics have been surveyed over the property, primarily over a well-defined kimberlite indicator mineral train that originates on the property. Ualliq is less than 20 kilometres from several recently discovered kimberlites on the diamondiferous Amaruk property.
The Companies have approved a two phase program designed to screen targets ahead of an intensive drilling program. A camp has been established and field work is underway. The two Companies have adopted an exploration approach similar to that taken on the Amaruk property. This year’s plan includes ground geophysics on 60 to 100 airborne geophysical targets. Up to 20 targets will be drill tested to confirm the presence of kimberlite. Any kimberlite intersected will be submitted for microdiamond analysis. | 
