Stornoway Diamond Corporation (TSX:SWY) BHP Billiton Diamonds Inc. (BHP Billiton) and Hunter Exploration Group today announced the approval of a $7.25 million exploration program for the Aviat Project on the Melville Peninsula in the Territory of Nunavut. Exploration work in 2005 will focus on the discovery of new kimberlite bodies within the Tremblay Corridor and will include a large component of drilling, testing a minimum of 25 targets. Mobilization has commenced on the property and drilling should be underway in the first week of April. Other work will include ground geophysics, till sampling and extensive prospecting.
To date, six diamondiferous kimberlites have been discovered on the property, including the AV-1 kimberlite which has produced an initial sample grade of 0.83 carats/tonne from the processing of 10.4 tonnes of kimberlite. Kimberlite AV5, which represents a surface concentration of hypabyssal kimberlite boulders in close proximity to the AV-1 area, will be drill tested for the first time in 2005. AV-5 returned 93 diamonds from the processing of a 48 kg of kimberlite sample collected last summer.
Approximately 30 to 50 holes are expected to be drilled between the months of April and October on the Aviat property. The initial targets are high priority geophysical anomalies situated under lakes within the Tremblay Corridor, a 75km by 3-8 km northwest trending zone that has shown outstanding kimberlite indicator mineral counts and chemistry from till samples collected between 2002 and 2004.
The Aviat Project is a joint venture between Stornoway Diamond Corporation (70%), BHP Billiton (20%) and Hunter Exploration Group and occupies 4.5 million acres on the Melville Peninsula, north of Hudson Bay.
Stornoway is a diamond exploration company with extensive landholdings (approximately 20 million acres) located in ten key project areas in northern Canada. Stornoway will directly spend more than $15 million to explore our properties and, together with its partners, will be exposed to more than $22 million in exploration expenditures in 2005.
Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins, P.Geol. (NT/NU), a qualified person under NI 43-101.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas