DIAMOND DIVISION

Trigon's exploration projects are strategically situated in some of the most promising diamond exploration areas in Canada, including the NWT and Nunavut.

IC PROJECT

IC Project Summary
  • The IC Project is located about 90km southeast of Kugaaruk in Nunavut It is located in a region that is emerging as one of Canada’s most exciting new diamond districts. Trigon generated the project and staked the property in early 2004. The land package is now comprised of 48 claims covering approximately 115,437 acres. In 2004, the project was optioned to Contact Diamond Corporation (TSX: CO), the diamond exploration subsidiary of Agnico-Eagle Mines Ltd. The IC claim block also adjoins Trigon’s Tim Project.
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  • Trigon is the operator of the project and holds a 49% interest in the project. Contact has vested a 51% interest in the property having funded $900,000 in exploration expenditures and $500,000 in certain cash and equity considerations. Contact is currently exercising its option to earn up to a 60% interest in the IC project by sole-funding a further $3 million of exploration expenditures.
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  • Exploration on the IC block has established a well-defined train of kimberlite indicator minerals with mineral chemistry indicative of a diamondiferous kimberlite source. Airborne geophysical surveying has identified a number of high-priority geophysical targets in the vicinity of the train. The results of up-ice sampling, as well as the nature of the indicator minerals recovered, suggests multiple, local sources.

    • IC Area Potential
  • The project is located in the Rae Domain of the Western Churchill Province. The IC claim block was staked between the BHP Billiton property at Repulse Bay where diamond-bearing kimberlites have been bulk sampled and the Diamonds North Amaruk Project where multiple kimberlite occurrences have been found. Recent kimberlite discoveries by Diamonds North Resources Ltd. at the Amaruk project have yielded some high diamond counts and favourable stone size distribution. At Indicator Minerals Inc.’s Darby project, located approximately 175 km west of IC, new discoveries have confirmed the presence of larger kimberlite bodies.
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  • This region of the eastern Arctic is showing the potential to host a significant, economic diamond discovery, and both Trigon and Contact regard the discovery of the source of the IC indicator train to be a high-priority exploration objective.

    • IC Exploration
  • Reconnaissance till sampling at the IC project in 2004 led to the recovery of pyrope garnets and chromites with upper mantle affinities in several locations and a concentration of grains within a discrete area near the IC property center.
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  • This discovery prompted Trigon to pursue a follow-up program in 2005 of airborne geophysics and till sampling. Trigon flew 5,200 line-kilometres of high-resolution airborne magnetics, identifying 44 anomalies for follow-up prospecting and sampling. During the summer of 2005, 226 in-fill till samples were collected to better resolve the indicator mineral anomaly. Microprobe analyses of the grains confirm the presence of pyrope garnets, chromites and chrome diopsides.
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  • Earlier this summer, Trigon mobilized crews to the site to undertake a ground-based program of target verification, prospecting and sampling in order to provide better definition of the source area of the indicator train. This work is in preparation for drill testing of kimberlite targets, scheduled for early fall.
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  • During prospecting on the IC property in the summer of 2005, the field team discovered a 10m by 5m area of frost shattered boulders comprised of angular quartzite blocks with fracture-filling and disseminated sulphide mineralization. A grab sample was found to contain 1220 grams per tonne Silver, 1.5 grams per tonne Gold, 0.70% Copper, 2.51% Zinc and 0.69% Lead. The mineralization appears to be associated with a 15km long magnetic trend, visible in the airborne geophysical data.
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  • A summer 2006 follow up program, run concurrently with the diamond exploration, has commenced for this polymetallic discovery consisting of confirmatory sampling, mapping, prospecting and an IP geophysical survey. Drill testing will follow based on the results of this work.

    • TIM PROJECT

    TIM Project Summary
  • The TIM Property is a 79,493 acre permitted block located 115 km south of Kugaaruk, Nunavut. It is located in a region that is emerging as one of Canada’s most exciting new diamond districts. The property is contiguous with Trigon's IC property
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  • The diamond rights to the property are being developed by a joint venture composed of Trigon, Indicator Minerals Inc. (IME) and Committee Bay Resources Ltd. (CBR). Trigon holds a 51-per-cent interest in the joint venture. IME together with CBR hold a 49-per-cent interest. Trigon is the operator of the joint venture. The TIM property lies within an area of mutual interest of Trigon and Contact Diamond Corporation (TSX: CO) and is a part of the IC option agreement between Trigon and Contact.

    • TIM Area Potential
  • The project is located in the Rae Domain of the Western Churchill Province. The TIM permits are located between the BHP Billiton property at Repulse Bay where diamond-bearing kimberlites have been bulk sampled and the Diamonds North Amaruk Project where multiple kimberlite occurrences have been found. Recent kimberlite discoveries by Diamonds North Resources Ltd. at the Amaruk project have yielded some high diamond counts and favourable stone size distribution. At Indicator Minerals Inc.’s Darby project, located approximately 150km west of TIM, new discoveries have confirmed the presence of larger kimberlite bodies.

    • TIM Exploration

    An initial work program 2005 consisted of property-wide reconnaissance till sampling. Several probe confirmed kimberlite indicator minerals were found in the samples. Earlier this summer, Trigon mobilized crews to the site to undertake a program of follow-up till sampling and prospecting to identify the source areas of the indicator minerals. This work is carried out in conjunction with the work on the IC property.

    RAM PROJECT

    RAM Project Summary
  • RAM is a diamond exploration project located in the southern Slave Craton of the Northwest Territories approximately 140 kilometres northeast of Yellowknife. Geochemical evidence indicates that this area is underlain by very thick lithosphere, a favourable condition for diamonds in any kimberlites which may be discovered. The land package is now comprised of 83 claims covering approximately 189,305 acres. Trigon generated the project and staked the property in 2002. In 2003, the project was optioned to Contact Diamond Corporation (TSX: CO), the diamond subsidiary of Agnico-Eagle Mines Ltd.
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  • Trigon is the operator and holds 46.77% interest in the project and Contact holds a 53.23% interest. Contact vested a 51% interest by sole funding $1.45 million in exploration expenditures.
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  • In 2003, Trigon identified a large underexplored area in the southern Slave. It recognized the enormous potential of the southern Slave and staked the RAM property, originally more than half a million acres in extent. Reconnaissance sampling programs by Trigon in 2004 over the property recovered high interest kimberlite indicator mineral anomalies with a strong proportion of G10d pyrope garnets indicative of a nearby diamondiferous kimberlite source.

    • RAM Area Potential

    The Slave Craton in Canada’s Northwest Territories is a proven diamond mining district. In the southern Slave, the Snap Lake Project, located 60km north of RAM, will be Debeers first diamond mine in Canada. The mine is under construction and will commence production in October 2007. It will produce 1.5 million carats per year when in full production. DeBeers reports that the Snap Lake diamonds have an average value of US$144 per carat and that the mineable grade is 1.46 carats per tonne. In November 2005, Debeers applied for the permits required to construct and operate the Gahcho Kue diamond mine, also located in the southern Slave approximately 110km east of RAM.

    RAM Exploration
  • In 2003, Trigon obtained a total of 747 overburden samples from the RAM property. Analysis of these samples revealed the presence of several kimberlite indicator trains. The indicator mineral chemistry and morphology of the grains, suggest local diamondiferous sources.
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  • In late 2004 a 4,100 line-kilometer helicopter-borne magnetic and time-domain electromagnetic survey was flown over parts of the RAM Property. In early 2005, a ground geophysics program was carried out and a 7,500 line-kilometer high resolution airborne magnetic survey was flown. In the spring of 2005, 13 reverse circulation holes were drilled on 10 distinct targets in the eastern area of the RAM property. Although the program did not result in kimberlite intersections, the joint-venture management committee maintained its strong belief in the project potential and planned the 2005 summer program.
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  • During the summer of 2005, 204 new samples were collected at RAM to help resolve kimberlite indicator mineral trains. Visual selection of indicator minerals prompted the joint venture to stake an additional 17,401 acres of claims in late February 2006, adjoining the eastern margin of the search area in order to completely encapsulate the expected source of the KIM trains on the property. The suspected source area has now been narrowed to approximately 6 square kilometers. The joint venture partners have agreed to a 2006 exploration program with an objective to identify the kimberlite bodies within the focused area.

    • SHU PROJECT

    SHU Project Summary
  • The SHU Project covers over 63,259 acres of the southern Slave Craton, near Trigon’s RAM project in Canada’s Northwest Territories. In 2003, Trigon carried out reconnaissance sampling to the south of its RAM property which led to the discovery of a distinct train of mantle-derived indicator minerals and subsequently staked the SHU claims in 2004.
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  • The SHU property has been incorporated into the RAM joint venture with Contact Diamond corporation (TSX: CO), the diamond subsidiary of Agnico-Eagle Mines Ltd. Trigon is the operator and holds a 46.77% interest in the project. Contact holds a 53.23% interest.

    • SHU Area Potential

    The Slave Craton in Canada’s Northwest Territories is a proven diamond mining district. In the southern Slave, the Snap Lake Project will be Debeers first diamond mine in Canada. The mine is under construction and will commence production in October 2007. It will produce 1.5 million carats per year when in full production. DeBeers reports that the Snap Lake diamonds have an average value of US$144 per carat and that the mineable grade is 1.46 carats per tonne. In November 2005, Debeers applied for the permits required to construct and operate the Gahcho Kue diamond mine, also located in the southern Slave.

    SHU Exploration

    During the 2005 field season, a low-level airborne magnetic survey was flown at the head of the indicator mineral train and 15 geophysical targets were identified. That summer, 114 till samples were collected in order to resolve the sources of the kimberlite indicator mineral trains on the property. The program also included prospecting and ground checking of geophysical targets. Results of this sampling confirm a very well constrained kimberlite indicator mineral train appearing to emanate from two high priority geophysical targets. It is planned that these targets will be drill tested in the fall of 2006. Permits have been received from the Mackenzie Land and Water Board to allow for this work.

    ALLIANCE PROJECT

    Alliance Project Summary
  • The Alliance Project is located in the James Bay Lowlands of northern Ontario, near the transition of the Lowlands and the Canadian Shield. The project includes more than 60 staked targets within the 6-million acre area of the Fort Hope Airborne Survey, flown on behalf of the Ontario Geological Survey.
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  • Trigon is the operator at Alliance and can earn a 60% interest in the project from Pele Mountain Resources (TSX-V: GEM). The Alliance project is part of Trigon’s Ontario Diamond Exploration Initiative, bringing a renewed strategic focus to the high-potential, yet underexplored Superior Craton of northern Ontario.

    • Alliance Area Potential

    The Superior craton in Ontario accounts for 23% of the earth’s Archaean rocks. The geology and the lithospheric conditions are very favourable for diamonds. DeBeers has demonstrated that kimberlites with exceptionally high quality diamonds can be found in the James Bay Lowlands of northern Ontario. They report that the diamonds from Victor, where mine construction has commenced, have an average value of more than US $450 per carat. The Victor pipe is located approximately 250km NE of Alliance.

    Alliance Exploration
  • In 2005 Trigon carried out an airborne geophysical survey, using a proprietary magnetic system, on closely-spaced lines. This program was followed by targeted heavy mineral and Mobile Metal Ion sampling to prioritize drill targets for drilling. Microprobe analysis of visually selected indicator minerals confirmed the presence of G10d chemistry, which is indicative of a diamondiferous kimberlite source.
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  • During the winter 2006 exploration program ground magnetic surveys were completed. A subsequent drill testing of 23 targets with Trigon's lightweight reverse circulation drill rig failed to intersect kimberlite. The sources of the indicator minerals remain to be found.
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  • The Alliance area is currently subject to active competitive exploration by both major and junior diamond exploration companies. Trigon is now undertaking a detailed analysis of the results to date. This analysis will determine the best way to move the project forward.

    • VIKING PROJECT

    Viking Project Summary

    The Viking Project covers a 4-million acre area of interest southeast of the Alliance Project in northern Ontario. The project was generated in-house based on a 2004 reconnaissance sampling program that recovered abundant kimberlite indicator minerals. Many of the recovered grains exhibit primary surface textures indicating very short glacial transport distances from their sources, likely less than 10 kilometres. Indicator minerals recovered from the area include G10 garnets, eclogitic garnets, picroilmenites, chromites and chrome diopsides.

    Viking Area Potential

    The Superior craton in Ontario accounts for 23% of the earth’s Archaean rocks. The geology and the lithospheric conditions are very favourable for diamonds. DeBeers has demonstrated that kimberlites with exceptionally high quality diamonds can be found in the James Bay Lowlands of northern Ontario. They report that the diamonds from Victor, where mine construction has commenced, have an average value of more than US $450 per carat. The Victor pipe is located approximately 250km NE of the Alliance

    Viking Exploration
  • The 2005 summer program at Viking included the collection of approximately 80 heavy mineral samples to verify the up-ice cut-off of the KIM source areas and was followed by a 5000 line-kilometer high-resolution airborne magnetic survey. Based on the sample picking results from 43 of these samples, cut-offs were established. After the interpretation of the airborne data, 11 high priority targets were staked. In the fall of 2005 Trigon carried out a field program consisting of ground checking of additional anomalies and target specific sampling.
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  • In April 2006 Trigon completed a test ground magnetic survey over one of the Viking airborne anomalies. The results of this work has shown that higher resolution data is required in order to assist in spotting precise locations for drilling. Forty samples from the 2005 summer program were analyzed and confirm the cut-off. The next work plan on the Viking Project is being developed
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