Margaret Lake Diamonds Prepares for Upcoming Drill Program; Reports on Recent Regional NWT Developments
Margaret Lake Diamonds Prepares for Upcoming Drill Program; Reports on Recent
Regional NWT Developments
VANCOUVER, BC / ACCESSWIRE / April 5, 2018 / Margaret Lake Diamonds Inc. (TSX-
V: DIA; FSE: M85) ("Margaret Lake" or the "Company") is pleased to report preparations
are now underway to commence a diamond drill program at its 100% owned Margaret Lake
Property ("the Property") in the Northwest Territories located nine kilometers north of the
Gahcho Kué diamond mine. The drill program has received regulatory approval to proceed.
Drilling is scheduled to commence before spring breakup in April.
Spring 2018 Drill Program
The Company is finalizing plans to conduct a core drilling program that will test up to 6
kimberlite targets on the Property. Each of the targets displays a gravity low, bedrock conductor,
or combination of both, and have been interpreted as having geophysical characteristics
potentially representing kimberlite bodies.
The Company's exploration model is based on similar methods previously utilized by Kennady
Diamonds Inc. (TSX.V: KDI) to delineate kimberlite targets. Kennady noted correlations
between targeting non-magnetic pyroclastic kimberlite targets located next to a magnetic
kimberlite dyke, with electromagnetic (EM) and gravity responses. This exploration model
ultimately led to the delineation of the Kelvin-Faraday resource located contiguous to the south
and east of the Company's Margaret Lake Property. The Company notes that some EM responses
received from its targets exhibits a similar shape to Kennady's Faraday kimberlite. Investors are
cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on
Margaret Lake.
Target - Drop Lake DIA14-002
Airborne EM data suggests a moderately conductive lake response. Ground EM data confirms
this conductor. HeliFalconTM airborne gravity gradiometer (AGG) data inversion results also
show a coincident response. Indicator minerals have also been recovered down ice of this target
on the western shore of the lake.
Figure 1. Two maps on the left represent resistivity data with the map, on the right representing
airborne gravity
Target - ML006 and ML007
Airborne EM data suggests a moderately conductive lake response on both targets. Ground EM
data confirms these conductors. HeliFalconTM AGG data also exhibits a well-defined response
that mirrors the EM in shape and size.
Figure 2. Map on the left represents resistivity data, map in centre is MaxMin EM data and map
on right is airborne gravity data
Target - ML041
This target displays semi-coincident ground EM and gravity signatures. This occurs on a NE-
SW trend similar to the trend of the Kelvin-Faraday kimberlites. Modelling shows the EM
signature is persistent at depth.
Figure 3. The map on the left represents ground gravity data with the dots being bathymetric
survey locations. Map on the right is ground EM data
Target - ML051
Target exhibits parallel EM conductors that are semi-coincident with ground gravity signatures.
A striking northwest feature exits the lake and trends on to land, suggesting that you can rule out
that the geophysical responses are due to lake sediments. The NE-SW trend is similar to Kelvin-
Faraday kimberlites. When modelled the EM signature is persistent at depth. This is further
evidence that what is seen here is due to bedrock geology.
Figure 4. The above maps show ground gravity data on the left and EM data on the right
Target - ML009
Approximately 100-meter diameter bathymetrically corrected discrete gravity low anomaly.
The Margaret Lake Property comprises 23 mineral claims totaling 23,199 hectares. The
Company holds a 100% interest in Margaret Lake and is not subject to any underlying royalties.
It is located just nine kilometers north of Canada's newest diamond mine, Gahcho Kué, a De
Beers/Mountain Province Diamonds joint venture and two kilometers from the Kennady
Diamonds Kelvin and Faraday kimberlite deposits.
Regional Developments
The Company is also encouraged by a number of recent positive developments within the region.
In January, Mountain Province Diamonds ("Mountain Province") (TSX: MPVD) announced it
would acquire Kennady Diamonds Inc. ("Kennady") (TSX.V: KDI) in an all-share offer valued
at C$176 million. In March, Mountain Province also reported it has signed a non-binding
memorandum of understanding ("MOU") with its partner in the Gahcho Kué mine, De Beers
Canada Inc. The MOU contemplates incorporating properties owned by Kennady Diamonds Inc.
into the Gahcho Kué joint venture, in the event that Mountain Province's proposed acquisition of
Kennady is approved. Mountain Province and De Beers will now work toward a definitive
agreement based on the MOU.
The Kennady North diamond project, which is host to the Kelvin and Faraday kimberlite
deposits, is located adjacent to both the Gahcho Kué mine as well as the Company's Margaret
Lake diamond property. Kennady announced on March 20, 2018 that "Results to date indicate an
increase in size for the Faraday 1-3 complex, with continuity in the high-grade hypabyssal sheet
rocks linking the two pipes together. These factors will be accretive to kimberlite tonnage
potential when the geological model for Faraday 1-3 is updated." Additionally, Kennady has
announced plans to undertake a 6,000 metre drill program this spring to test high-priority
grassroots exploration targets within the Kelvin-Faraday Corridor, which is on the property
adjacent to Margaret Lake Diamonds.
The Kelvin kimberlite hosts a N.I. 43-101 Indicated resource of 13.62 million carats contained in
8.50 million tonnes with a grade of 1.60 carats per tonne and an average value of US$63 per
carat. The Faraday kimberlite hosts a N.I. 43-101 Inferred resource of 5.02 million carats
contained in 3.27 million tonnes with a grade of 1.54 carats per tonne and an average value of
US$98 per carat at a bottom cutoff size of 1mm. Investors are cautioned that mineral deposits on
adjacent properties are not indicative of mineral deposits on Margaret Lake.
Qualified Person
The technical data in this news release has been reviewed and approved by Mark Fields, P.Geo.,
a Qualified Person under the provisions of National Instrument 43-101.
About Margaret Lake Diamonds Inc.
Margaret Lake Diamonds Inc. (TSX.V: DIA) is a diamond exploration company focused on the
Northwest Territories, Canada with two exploration properties. The Margaret Lake project is
adjacent to Kennady Diamonds and in close proximity to Gahcho Kué, the newest Canadian
diamond mine owned by De Beers and Mountain Province Diamonds. The Company also has a
60/40 joint venture with Arctic Star Exploration Corp. (TSX.V: ADD) to explore
the Diagras property, which is comprised of 23 claims totaling 18,699 hectares located in the
prolific Lac de Gras diamond field.
ON BEHALF OF THE BOARD OF DIRECTORS
"Paul Brockington"
Paul Brockington, President and Chief Executive Officer
For further information, please contact:
Margaret Lake Diamonds Inc.
Paul Brockington
President and CEO
Phone: 1.604.630.2810
Web: www.margaretdiamonds.com
Forward-Looking Statements
This news release contains forward-looking information that involve various risks and
uncertainties regarding future events. Such forward-looking information can include without
limitation statements based on current expectations involving a number of risks and uncertainties
and are not guarantees of future performance of the Company. Actual results and future events
could differ materially from anticipated in such information. These and all subsequent written
and oral forward-looking information are based on estimates and opinions of management on the
dates they are made and expressed qualified in their entirety by this notice.
Neither 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.
SOURCE: Margaret Lake Diamonds Inc.