Stornoway Diamond Corporation (SWY:TSX), Ashton Mining of Canada Inc. (ACA:TSX), and Caledonia Mining Corporation (CAL:TSX) announced today that the joint venture partners have approved a $500,000 summer exploration program for the 40,000 acre Kikerk Lake property in the Coronation Gulf region of Nunavut. The program includes ground geophysical surveying, indicator mineral sampling and further drilling to investigate the diamondiferous Stellaria kimberlite that the joint venture discovered in 2002.
Stellaria is interpreted to be a steeply dipping hypabyssal dyke with an estimated true width of 13 metres. The kimberlite lies along a geophysically-defined linear feature with an estimated length of two kilometres. As reported on November 8, 2002, caustic dissolution analysis of 110 kg of kimberlite from Stellaria returned 67 diamonds, including one diamond measuring 2.3 x 1.4 x 0.9 mm. Work on the property in 2004 included indicator mineral sampling in the area surrounding Stellaria to prioritize potential drill targets.
In light of the encouraging initial diamond results, the joint venture will carry out additional work on Stellaria during the summer field season. The program will include the drilling of as many as six core holes in an effort to better define the potential length and width of the dyke and investigate the associated linear feature.
The Kikerk Lake property is located approximately 20 kilometres northeast of the Knife Lake kimberlite currently undergoing evaluation by De Beers Canada Exploration Inc. The property also hosts the Potentilla kimberlite, located 700 metres east of Stellaria. As reported on September 16, 2002, a 5.83 tonne sample of drill core collected from Potentilla returned an estimated diamond content 17.5 carats per hundred tonnes. The diamonds recovered from this sample include a 0.34 carat colourless stone.
Exploration on the Kikerk Lake property is governed by an agreement among Stornoway Ashton, and Caledonia. The current respective interests of the parties are Ashton 52.5%, Stornoway 30.0% and Caledonia 17.5%. Ashton has an option to increase its interest to 59.5% by carrying Caledonia to completion of a feasibility study.
The Kikerk Lake property is under the direction of Brooke Clements, P.Geol. (NT/NU), a Qualified Person under NI 43-101.
In total, 21 kimberlites, including eleven that contain diamonds, have been discovered in the Coronation Gulf region.
Stornoway is a diamond exploration company with extensive landholdings (approximately 29 million acres) located in key project areas in northern Canada and Botswana. Stornoway will directly spend more than $15 million (Cdn) to explore our properties and, together with its partners, will be exposed to more than $22 million (Cdn) in exploration expenditures in 2005.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Eira Thomas