Margaret Lake Diamonds to fly gravity survey this week

POSTED ON August 26, 2014 BY Travis McPherson
CATEGORY Margaret Lake Diamonds, Stories,

Kelvin bulk sample drilling on Kennady's property to the south of Margaret Lake (Image: Kennady Diamonds)

After months of delays, junior diamond explorer Margaret Lake Diamonds (DIA:TSXV) will finally begin their first pass exploration program on the Margaret Lake property in the Northwest Territories this week.

This initial program will consist of a helicopter-borne gravity gradiometry known as the HeliFALCON® to help the company narrow down targets for drilling its extensive land package.

Margaret Lake holds over 23,199 hectares after recently staking an additional four claims to the north.

Helicopter surveys like this have proven successful for the likes of Kennady Diamonds (KDI:TSX) and Mountain Province (MPV:TSX) in finding kimberlites.

Recall, the Margaret Lake property immediately surrounds Kennady to the north and is located 10km from the Gahcho Kué mine being developed by De Beers and Mountain Province.

De Beers' Snap Lake mine located approximately 90km to the west of Margaret Lake (Image: De Beers Group Canada)

De Beers' Snap Lake mine is located approximately 90km to the west of Margaret Lake (Image: De Beers Group Canada)

The HeliFALCON® gravity gradiometer system has been contracted to fly a 75 meter line spacing survey at a nominal 35 metres above the ground at 110 to 130 km/h. This should provide high-definition gravity gradiometry and magnetics which can be used to direct ground surveys and, ultimately, to define kimberlite-like drill targets.

To expedite the process Margaret Lake commissioned a digital terrain model together with detailed bathymetry of the property using WorldView2 high-resolution satellite imagery. Typically other explorers have had to wait for the results of the gravity survey prior to performing a bathymetric survey which delays the interpretation of data.

Modern techniques like this survey were not available in the diamond boom of the 1990's and given the exploration success of Kennady using similar modern surveying techniques to find diamondiferous kimberlites, Margaret Lake's management team believes this survey could pay for itself quite quickly.

The estimated cost of a survey like this is $800,000 and Margaret Lake expects to have the results within 2 weeks.

The company is currently earning a 70% interest in the property by spending $2 million in exploration expenditures by October 13, 2015.

The company raised $1.2 million in April and after spending on the helicopter survey will likely need to raise money soon after its completion.

We have calls in with management and will update this post accordingly.

Read: Margaret Lake Diamonds Inc. - Exploration Update

Disclosure: I am a shareholder of Margaret Lake Diamonds Inc. and as a result am biased. This is not investment advice. Always do your own due diligence.

Travis McPherson

trav@ceo.ca

Travis McPherson

trav@ceo.ca

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.