KYLE LAKE

At the Kyle Lake project in northern Ontario the Company has discovered several diamondiferous kimberlites.  The most promising of these is the U2 Kimberlite.
 

• 155 mineral claims

• 100% owned by Metalex (Kel-Ex Development Ltd holds a 10% free carried interest).

• The region seems exceptionally fertile for diamond mineralization with commercial grade kimberlites being found nearby (DeBeers’ Victor Diamond Mine)

METALEX WORK

• In the early 2000s Metalex conducted a regional heavy mineral sampling campaign across northern Ontario
  • This survey identified an area which showed promise for undiscovered kimberlites
• In 2006, a 28,620 line kilometer airborne geophysical survey was flown which identified 34 targets which were then staked.

• Priority targets were drill-tested resulting in the discovery of three new kimberlites (referred to as U1, U2 and U2NW).

• The large U2 kimberlite showed the most promise based on results from core drilling

• A 450 ton mini-bulk sample confirmed the presence of high quality diamonds with a coarse size distribution.

INFORMATION ABOUT U2

• Approximately 9.3 hectares (24 acres) in size, second only to the Victor Mine in northern Ontario
• Diamonds recovered from core drilling have a coarse size distribution and are predominantly gem quality similar to those recovered from DeBeers’ Victor Mine.

MINI-BULK SAMPLE RESULTS

• Processing of 11 reverse circulation holes testing the U2 kimberlite provided increased confidence that the U2 pipe has a similar diamond population to the Victor Diamond Mine. The size distribution of the U2 diamonds is very coarse with a high proportion of the diamonds being in the large size categories. This is important for a high average carat value.
• The following table contains the size distribution of the diamonds recovered:

• The 86 largest (+1.7mm) diamonds totaled 15.95 carats with 73 of the diamonds classified as white, six as brown, five as grey and two as colored (yellow and pinkish brown). This equates to 88.8% white, 7.3% brown, 2.8% grey and 1.1% colored by weight.
• The two largest diamonds (2.61 and 1.25 carats) recovered from U2 will cut as high-quality white gems.
• Below are pictures of some of the diamonds recovered to date including the 2.61, 1.25 and 0.72 carat stones:

FUTURE WORK

Based on the high proportion of gem quality diamonds, the large size of the U2 kimberlite and the diamond grades, the U2 kimberlite merits the collection of a 10,000 ton bulk sample so that at least 1,000 carats of diamonds can be recovered for assessment. This large diamond parcel will accurately define the diamond grade and average value per carat, allowing an improved assessment of whether the U2 pipe could be mined.

MAP & IMAGE GALLERY

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