De Beers' Victor mine has established the James Bay Lowlands as a region with the potential to host world class diamond deposits. The open-pit mine has already started production and was voted the mine of the year in 2009 by a mining magazine. The mine has an expected life of 12 years and a total project life of 17 years.

The mine site includes an onsite processing plant, quarries, sand and gravel pits, and an all-weather airstrip. Annual revenue from the mine is expected to be between $200 million and $300 million per year, with a per carat value of $500, one of the highest in the world at today’s prices.

The Ontario Geological Survey has documented 29 kimberlites in the James Bay Lowlands, 17 belonging to De Beers and nineteen of them containing diamonds.
The kimberlites are clustered in different areas of the James Bay Lowlands, approximately 50 to 150 kilometres from De Beers' Victor diamond mine. The Ranulf property is also situated in the area surrounding the T1, U1 and U2 kimberlite pipes recently discovered by Metalex Ventures Ltd.

The James Bay Lowlands are underlain by the eastern extension of the Archean Superior Province basement rock and younger Phanerozoic, Silurian sediments. The James Bay Lowlands lie on the Eastern Canada shield, which has only recently seen a surge in exploration. The geology indicates, good, if not better potential for diamond discovery than the Northwest Territories, based on the presence of an archaen craton, which is a thick and cool lithosphere. There are also well developed, deep structures favorable for the ascent of kimberlite magma. These conditions are ideal for large-scale mining operations and high quality diamond deposits.

Most known diamond deposits are located on cratons and the world’s largest, the Superior Craton, covers most of Northern Ontario, including the James Bay Lowlands.

The Superior Craton is one of only two cratons in Canada with the proven potential to host economic diamond concentrations, yet it remains largely unexplored. Both Alliance and Attawapiskat lie on the Superior Craton. Much of the current diamond exploration in Ontario centres on the James Bay Lowlands and the area from Cobalt to Lake Timiskaming, according to the Ontario Ministry of Northern Development and Mines.

Several junior mining companies in Chalice and West Timmins have staked claims and taken bulk samples in the area. The results have led to macro and microdiamonds with good long-term potential for diamond production. The primary regions of discovery in the James Bay Lowlands are from Cobalt to Lake Timiskaming, Wawa to Kapuskasing, Marathon to Geraldton and northwestern Ontario near the Manitoba border.

The DiaMine James Bay Property comprises over 20 units in two mineral claims totaling almost 400 hectares and was acquired in December 2007. The younger intrusive source of the magnetic anomaly, which as modeled as a near surface cylindrical body, puts the estimated size of the K anomaly at 28 ha and the S anomaly at 4.4 ha. Both of these anomalies may be diamondiferous kimberlites. Most diamondiferous kimberlites are in the single digit hectares. The producing pipes at Lac de Gras range in size from 2 ha to 12 ha. The Victor Pipe is a composite pipe and is considered large at 16 ha. This would make the Kinoshea River Project (The K anomaly) the largest kimberlite in Canada.

The Ontario Government conducted a large-scale overburden heavy mineral survey for kimberlite in the area several years ago. A train of diamondiferous KIMs (diamond indicator minerals) consisting of G10 pyrope garnets and picroilmenites was detected along the west side of the survey area, indicating the presence of a diamondiferous kimberlite pipe(s) at some point in the up ice direction. The chemistry of the G10 garnets in this train is strong, with high chrome and low calcium, and is different from the G10 chemistry of the De Beers Victor Pipe, meaning the source is not from the Attawapiskat area, but from a new diamondiferous kimberlite yet to be discovered.

Forward Looking Statements

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties that may cause actual results to differ from anticipated results. Although we deem our expectations to be realistic, results may vary and we cannot guarantee future results.

For additional information please contact DiaMine Explorations Inc., at 866 557 8637 or by fax: 905 625 6077
email: info@diamine-explorations.com Website: www.diamineexplorations.com