Large diameter reverse circulation ("RC") drilling at the three hectare T1 kimberlite is progressing well. Two of the four planned holes are now complete and the third hole is currently at a depth of 112 meters. Once the third and fourth holes are finished the 300 tonne sample will be complete. Processing of this sample for diamond recovery is scheduled to commence in the new year.

Five delineation holes are to be completed on the larger (9 to 10 hectare) U2 kimberlite. Drilling is currently underway on the first delineation hole. This vertical hole has intersected crater infill at 12 meters, kimberlite at 44 meters and drilling continues in kimberlite at a present depth of 366 meters. A second core drill is presently being mobilized to site to assist in the delineation program. The RC drill is scheduled to be moved from T1 to U2 in early January 2010 once the T1 bulk sample drilling is completed. Approximately 10 RC holes will be needed to collect 300 to 400 tonnes of U2 kimberlite for diamond content evaluation.

As previously reported, results from a Geotech ZTEM airborne survey over the 5.01 zinc-copper-leadsilver discovery located a distinct low resistivity anomaly directly over the mineralized zone. The nature of this anomaly suggests that the mineralization could potentially continue to greater depth than is currently known. Drill testing of this potential depth extension has now commenced. To date the 5.01 discovery has been traced over a strike length of 200m and at depth to 275m and has yielded drill intercepts of up to 102m of 6.5% zinc and 0.19% copper such as intersected in DDH501-06. This intersection is not considered to be representative of the true width of the mineralization.

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