Diamond Results From This Year's Delineation Drilling, Sequoia Kimberlite Complex, Northwest Territories
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Diamond Results From This Year's Delineation Drilling,
Sequoia Kimberlite Complex, Northwest Territories
December 5, 2022
VANCOUVER, BC / December 5, 2022 / Margaret Lake Diamonds Inc. ("MLD" or the
"Company") (TSXV: DIA) (FKT:M85) (OTC PINK: DDIAF) is pleased to announce that it
has received caustic fusion diamond results from the Sequoia Kimberlite Complex ( “Sequoia”)
from the Diagras Project (“Diagras”).
The Diagras project is located at prolific diamond production district of Lac de Gras in the
Northwest Territories and is a Joint Venture (the “JV”) between MLD (18.5%) and Arctic Star
Exploration Corp. (81.5%) (“Artic Star”).
The results are given below in Table 1 along with the previous results for comparison.
Sequoia
by Year
+0.106
mm
+0.150
mm
+0.212
mm
+0.3
mm
+0.425
mm
+0.6
mm
+0.85
mm
+1.18
mm Weight Stones/
100 kg
2022 608 255 78 35 17 7 2 1 1650.5 Kg 61
2021 282 117 39 23 10 6 1 1 505.3 Kg 95
Total 890 372 117 58 27 13 3 2 2155.8 Kg 69
Notes for Table 1: The Sequoia caustic fusion results were processed through SRC laboratories
of Saskatoon, the core was hand split and bagged in approximately 8kg samples to fit geological
intervals where possible, the first half of core was sent and processed, then the second half of the
core was sent using the same sample intervals. Both samples were sent by chain of custody, SRC
is an independent lab and is SO/IEC 17025:2017 accredited. Samples are placed in a kiln,
heated to 5080 with caustic soda for 24 hours. The residue is hot poured through a 0.075mm
sieve, then further chemically treated if required until just the refractory minerals remain
including diamonds. The residue is sized by sieving and then the diamonds are selected by a
mineralogist. Larger diamonds (>0.5mm) are described and weighed. Those above 0.3mm are
photographed.
The results are from the 6 holes completed into Sequoia in spring 2022, 5 of which encountered
kimberlite. The holes are part of a delineation drilling program designed to define the size, shape,
geology, and tonnage of the Sequoia Kimberlite complex. In this program, three holes are drilled
from one collar, with the collars being spread approximately 200m apart, with scope to infill up
2
to 100m centers. At each collar a vertical hole is drilled to the assumed center of the kimberlite,
this will continue to 250m depth or when it exits the kimberlite. The rig is then tilted and spun, to
drill an inclined hole to the east and then a hole to the west. These holes are designed to capture
the edge of the kimberlite. Further drilling planned for 2023 is required to complete this first past
delineation program. The geophysical signature of the complex is at least 800m long and the
holes reported here are from the southern 200m.
Remarkable is the consistent descriptions of the stones being overwhelmingly clear and white
from the SRC lab and this continues with the 2022 results. Photographs of the >0.3mm stones
have been provided and can be viewed on JV partner Artic Star’s website at www.arcticstar.ca.
If this trend continues into the larger commercial stones, it bodes well for a higher-than-average
prices for the Sequoia diamonds. Average prices of commercial diamonds in the Lac De Gras
field are highly variable (From $US30/ct to $US450/ct), from kimberlite and kimberlite. Sequoia
will need to have goods at the higher end of this spectrum to be economic, the coarse
distribution, predominance of white clear stones, the high population of type 2 stones and the
concurring indicator mineral chemistry are layers of evidence that this is achievable. A larger
sample with >1000ct of commercial size diamonds will be required to confirm this. This sample
is planned for the 2024 Winter Road.
The geological observations from each hole report three main rock types, a Coherent Kimberlite,
a Volcaniclastic kimberlite, and a transitional kimberlite between these two types, a review of the
diamond tenure of each rock type and their distribution is underway and will be reported when
completed.
Planning and budgeting are underway for the 2023 program at Diagras Project and the Company
looks forward to the next drilling.
Yari Nieken, President & Chief Executive Officer, commented “The company is overall happy
with the results from the 2022 drilling program despite the lab delays in assaying them. This year
was very positive and in line with the technical teams’ expectations we look forward to the 2023
exploration season to continue our journey with this historical project. We are also excited to see
that the global industrial diamond market is expected to grow in the forecast period of 2023-2028
at a CAGR of 3% to reach USD $2.2 billion by 2026 due to speedy development in construction
and automotive industries.”
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Figure 1
Figure 1 : Size Frequency Graph: Stone size in carats versus Stones per tonne. Green line,
Sequoia 2021 results, Red line Sequoia total combined results. Red curve to the left, is for
guidance a 1ct/t grade curve with average gradient. Note that it appears the lower gradient
Sequoia curves will converge on this line at large stone sizes.
About Margaret Lake Diamonds Inc.
MLD is a Canadian based mineral exploration company. As part of its joint venture with Arctic
Star Exploration, MLD holds an 18.5 per cent interest in the Diagras diamond project Northwest
Territories property. The property hosts 13 known kimberlites originally discovered by DeBeers
in the 1990’s and MLD believes there is an opportunity to apply modern exploration techniques
to define additional kimberlites.
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Qualified Person
The Qualified Person for this news release is Buddy Doyle, AUSIMM, a Geologist with over 35
years of experience in diamond exploration, discovery, and evaluation. A Qualified Person under
the provisions of the National Instrument 43-101.
On behalf of the Board
Margaret Lake Diamonds Inc.
"Yari Nieken"
President, Chief Executive Officer, Chairman
Tel: 604.328.0425 | Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
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Information set forth in this news release may involve forward-looking statements under
applicable securities laws. Forward-looking statements are statements that relate to future, not
past, events. In this context, forward-looking statements often address expected future business
and financial performance, and often contain words such as “anticipate”, “believe”, “plan”,
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timing of exploration and development plans, or other similar expressions. All statements, other
than statements of historical fact included herein including, without limitation, statements
regarding the use of proceeds, TSXV final approval, and the exploration potential of the Diagras
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Investors are cautioned against attributing undue certainty to forward-looking statements.
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