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Talmora Diamond searching for the Lena West Diamonds • 416.491.6771

Ray Davies

Talmora Diamond Inc. (CNSX: TAI) has benefited tremendously from the work done by its neighbours who have found numerous and widespread kimberlite indicator minerals (KIMs) and diamonds west and south of Talmora, but have not found their source. Despite the good diamond association chemistry of the KIMs, our neighbours have moved on and Talmora is the only property with drill targets and matching KIM chemistry that has not been tested. Talmora’s focus now is on raising funds for a drill program.

Resource Intelligence: How did you acquire the Talmora property?

Ray Davies: Darnley Bay found diamondiferous kimberlites near Paulatuk in 2000. In 2003 Talmora acquired three exploration permits at the start of a diamond rush that covered most of what is known as the Lena West Diamond area, lying between Great Bear Lake and the Arctic coast and extending from the east side of Great Bear Lake to beyond the MacKenzie River.

RI: What work has Talmora done?

RD: Talmora completed an airborne magnetic survey that shows numerous anomalies with characteristics of kimberlite pipes and has collected 350 till samples. The samples contain kimberlite indicator minerals (KIMs) that show a strong correlation with magnetic anomalies.

RI: Talmora has not drilled these targets?

RD: No. The Talmora property was small and carefully chosen, but when others focused on large areas to the west of Talmora and found widespread KIMs with good diamond association chemistry and an unprecedented 15 diamonds they naturally got all the attention. It was prudent for Talmora to keep a low profile, see what others found and hope their discoveries would stimulate interest in Talmora.

RI: Were your neighbours successful?

RD: After seven years and spending $75 million they only discovered the small but very diamondiferous Dharma kimberlite SE of Talmora. Darnley Bay to the north of Talmora recently added three kimberlites to their original cluster of 10. Our neighbours to the west have moved on and Talmora has added some key ground that they let go. It is significant that Darnley Bay, Dharma and Talmora lie on a favorable structure believed to be the northern extension of the Slave diamond corridor that includes all the province’s economic diamond deposits.

RI: So where did the KIMs and diamonds west of Talmora come from?

RD: The KIMs over this huge area indicate the presence of a significant diamond field and they show very little variation in mineral chemistry as if they were all from a single source. Diamondex eventually showed that many if not all of the Lena West KIMs, were derived from the base of the Cretaceous sedimentary basin that covers most of the area, and the KIMs entered the basin from the east or from the direction of the Talmora property.

RI: Are KIMs on the Talmora property also from this Cretaceous basin?

RD: No. Talmora, Darnley Bay and Dharma are outside the basin and ice flowed from these properties on to the basin.

RI: Could the widespread KIMs and diamonds west of Talmora have come from the Darnley Bay or Dharma kimberlites?

RD: No. The KIMs west of Talmora have completely different chemistry to that of the Darnley Bay kimberlites. The Dharma KIMs match some of those from the west but do not match the full range of compositions and cannot be the source of them all.

RI: Could they have come from the numerous kimberlites of the Slave province?

RD: No. Diamondex showed early on that this was not the case.

RI: Do you imply that Talmora is the source of the KIMs and diamonds of the Cretaceous basin?

RD: Yes. Talmora’s abundant spinels and ilmenites (see figure) match those of the Cretaceous basin perfectly as do the few eclogitic garnets and chrome diopsides. Talmora has too few pyropes to make a meaningful pyrope comparison. Evidence points to talmora being the source of the kims and diamonds.

RI: I see that Talmora does not trade very much. Why is that?

RD: Talmora insiders hold 34% of the stock and the rest is tightly held by investors who know that it is very much undervalued.

Investor Highlights:

  • 350 recent till samples were shown to contain kimberlite indicators and strong correlation with magnetic anomalies
  • Talmora lies on a structure believed to be the northern extension of the Slave diamond corridor, which includes all the province’s economic diamond deposits
  • Talmora insiders hold 34% of the stock and the rest is tightly held by investors
Disclosure: No Positions