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Birch Kimberlites Drilling
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Argonaut
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Lammasu New
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Kendu New
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Grizzly Diamonds Ltd. (GZD) has signed an option agreement with Blue Diamond Mining Corporation (BDM) to acquire an undivided 60% interest in the Legend Property and an undivided 51% interest in the Little Legend Property, both located in the Birch Mountains of Northeast Alberta. BDM owns an undivided 85% mineral interest in the Little Legend Property and the remaining undivided 15% carried interest is owned by Grizzly Gold Inc., a corporation controlled by Brian Testo, the President and CEO of GZD. In order to acquire a 60% interest in the Legend and Little Legend properties, GZD must complete exploration expenditures of $100,000 on the properties within 18 months of the signing of the agreement. The exploration plan for 2005 through 2006 consists of ground geophysics and drilling.
The Legend and Little Legend properties are comprised of approximately 272,000 acres (110,000 hectares) within the Birch Mountains of northeastern Alberta. Past work by Montello Resources Ltd., Redwood Resources Ltd., and Kennecott Canada Exploration Inc. was successful in identifying eight kimberlite pipes, which together comprise the diamondiferous Legend Kimberlite Field. A ninth kimberlite, the Kendu Kimberlite, was discovered by BDM during 2001.
The Legend Kimberlite Field is located along the western margin of the Proterozoic Taltson Magmatic Zone (TMZ). Favourable traits of the regional setting of the Legend Kimberlite Field, include: (a) the property exists proximal to the eastern margin of the Buffalo Head Terrain and is thought to be underlain by the western edge of the TMZ, but portions of the field may be underlain by basement of the Archean aged Buffalo Head Terrane, which underlies Ashton's diamondiferous kimberlites in the Buffalo Head Hills, (b) seismic refraction and reflection studies indicate that the crust in the Birch Mountain region is likely between 35 to 40 km thick, a trait favourable for the formation and preservation of diamonds in the upper mantle, (c) the Legend and Little Legend properties exist along the north flank of the northeast trending Peace River Arch and the east edge of the northwest trending Grosmont High, either one of which could have controlled the emplacement of Cretaceous kimberlites in the Birch Mountains, and (e) at least two of the Birch Mountain kimberlites, the Legend and Phoenix kimberlites, are diamondiferous. Little diamond indicator sampling has been conducted down-ice of the Legend and Little Legend properties therefore little is known about the overall potential of the kimberlite field in terms of diamond potential. The Legend and Little Legend properties exist within a favourable regional setting for possible kimberlites and diamonds and warrant aggressive exploration.
A high-resolution aeromagnetic survey during the late 1990's identified numerous circular anomalies, possibly indicative of kimberlitic intrusives. Detailed follow-up work at some of these targets, which included both heliborne and ground-based geophysical surveys, has produced discrete geophysical responses similar to those for known kimberlites that have yet to be drill tested. Grizzly Diamonds Ltd. plans to conduct ground geophysics over a few targets and drill testing of at least one and possibly two targets in the Birch Mountains during winter 2005 - 2006.
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