project Kyle Lake Kimberlite Group

The Kyle kimberlite series consists of five pre-Paleozoic kimberlites located in a general westerly direction from the Attawapiskat River swarm of kimberlites.

The joint venture of KWG and Spider discovered the five kimberlites over a three year period in the mid 1990s.

In summer of 2006 the two Joint Venture Partners entered a three year option agreement with Renforth Resources (formerly Wycliffe Resources). According to the agreement, Renforth can earn a 55% interested in the Kyle Kimberlite group by expending six million dollars over the next three years developing the properties.

Kyle Lake #1 kimberlite
The largest of these kimberlites; Kyle Lake #1, was discovered in 1994. Kyle 1 subsequently underwent a 6.22 tonne (mini-bulk sample) and was determined in-house by Spider management to average ~ 0.60 carats per tonne as an undiluted micro + macro diamond grade based upon 18 diamond drill holes, totaling 7,546.5 meters (3,541.4 meters in kimberlite). It is noteworthy that many phases were initially interpreted to exist in this intrusion, one of which grades up to 8 carats per tonne.

The largest of these kimberlites; Kyle Lake #1, was discovered in 1994. Kyle 1 subsequently underwent a 6.22 tonne (mini-bulk sample) and was determined in-house by Spider management to average ~ 0.60 carats per tonne as an undiluted micro + macro diamond grade based upon 18 diamond drill holes, totalling 7,546.5 meters (3,541.4 meters in kimberlite). It is noteworthy that many phases were initially interpreted to exist in this intrusion, one of which grades up to 8 carats per tonne.

Spider estimates that the Kyle Lake #1 kimberlite covers a surface area of 2.6 hectares tapering to depth.To the 510 meter level some 14.5 million tonnes of kimberlite have been drill identified. Of the 4,395 diamonds extracted during the mini-bulk sample, De Beers were engaged to randomly select 111 commercial size diamonds (with one dimension in excess of 0.8 mm) from the suite of 793 macro-diamonds that had been previously collected by Spider from this particular kimberlite.

The 111 diamonds have recently undergone an evaluation by a subsidiary service company to De Beers. The diamonds that were tested were dominantly octahedral in morphology with little resorption as represented by 75% of the population. Colorless diamonds are most common (64% of the population) with a smaller portion of yellow-brown stones (30% of the population). Very low nitrogen (less than 50 ppm) type IaAB diamonds represented 51% of the population and nitrogen free type II diamonds represented 12% of the population. The abundance of these two diamond types is consistent with derivation from the peridotite mantle sources, with minor sampling of eclogite material. The wide variation in color, morphology, resorption, and nitrogen content and aggregation state from the Kyle Lake No. 1 kimberlite suggests the presence of a number of para-genetic subpopulations. This interpretation supports the theory that this particular kimberlite is a multi-phased kimberlite, each phase distinguishable from the other by analysis of the contained diamonds. Further forensic type studies would be needed, to continue this line of investigation as to which individual phases might be most interesting from an economic perspective.

Kyle #2 Kimberlite
Kyle #2, the smallest of the five, was discovered in 1995. Caustic dissolution testing of the discovery hole determined Kyle #2 to be diamondiferous, but no other testing was done until very recently. In November 2006 Renforth, kicking off their option agreement with KWG and Spider, drilled two holes into Kyle #2. Each hole intersected kimberlite and 550 kg of the diamond-bearing rock awaits micro-macro diamond analysis.

Kyle #3 Kimberlite
Perhaps, one of the most interesting discoveries in this area is the Kyle #3 kimberlite. It is located near the confluence of two major rivers, the Attawapiskat and the Muketei. This kimberlite was discovered in late 1995 and underwent additional drilling in the early winter of 1996, with a revisit in early 2000. A total of twelve drill holes have tested this dyke-like kimberlite, which has been traced by diamond drilling over a strike length of 450 meters. The kimberlite dike has a near vertical dip and the average width is around 25 meters, however a blow exists near the east end, which increases the width in this area to about 125 meters. Ground geophysical mapping (magnetism) has further traced this kimberlite in the east and west direction, however this has not been drilled confirmed.

All twelve holes encountered kimberlite and of these 12 holes, nine intersected a uniform very anomalous (with respect to diamond grade) phase of the kimberlite. The average grade of the nine inclined holes drilled along the 450 meter length of this kimberlite is 0.92 carats per tonne over a 6 meter section in each hole (caustic dissolution test on systematic sampling of core as submitted to Lakefield Research). This anomalous core area is surrounded by lower grade material, above and below the aforementioned intersections in each hole.

Kyle 3 has been traced by one vertical hole to a depth of 210 meters; this hole was abandoned in kimberlite.

Kyle #4 Kimberlite
The fourth kimberlite was discovered in the fall of 1996 and was re-visited for a second drill hole at the start of 1997. The drill core was analyzed by Lakefield Research and diamonds were recovered. No further work has been done on the property since then.

Kyle #5 Kimberlite
Kyle #5 was discovered immediately after Kyle #4 at the end of the 1996 drilling program and second hole was drilled at the start of the 1997 program. The core from each hole was analyzed by Lakefield and diamonds were recovered. In February 2006, a comprehensive ground magnetic survey was completed.