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The Qilalugaq Project is in the exploratory phase as BHP Billiton Diamonds Inc. (BHPB) investigates potential diamond reserves near Repulse Bay , Nunavut.  The contiguous claim block for the project is comprised of 16 million acres.  To support potential future development of this property, BHP Billiton has engaged the services of Rescan to conduct a number of baseline environmental surveys.

Overview

BHPB has explored potential diamond reserves near Repulse Bay , Nunavut , since 2000 as part of their Qilalugaq Project. Recent drilling has intersected nine kimberlites on the property and the microdiamond results indicate that the kimberlites are weakly to moderately diamondiferous. Follow-up core drilling was carried out on one of the kimberlite pipes. Approximately 9.1 tones of kimberlite were processed resulting in the recovery of 70 stones with a total weight of 2.36 carats. Additional bulk sampling is planned for this pipe and on several nearby pipes. Testing and evaluation of other targets on the property will continue. As results are preliminary at this stage, the economic significance of the results is not yet known.

Experience

Rescan conducted environmental monitoring prior to and during winter exploration drilling over ice covered lakes.  Rescan also conducted a preliminary freshwater baseline study during the open water season that included, aquatic biology, physical limnology, bathymetry and water chemistry.  This information will be used as the basis for any further baseline work conducted at the site.