Teck Cominco seeks diamonds at Darby

Indicator Minerals Inc. said its partner, Teck Cominco Ltd., has discovered kimberlite boulders in apparently a new area of the Darby Project in Nunavut.

"These are significant new discoveries because they appear to have come from a cluster that is separate and distinct from the previously identified kimberlites on the Darby Property," Dave Kelsch, vice president of exploration for Indicator Minerals, said in a July 16 statement.

"Follow-up work to identify the source of the boulders has already started and the emphasis for the remainder of the season will be to add further discoveries property wide."

Teck Cominco found two visually different types of kimberlite boulders while prospecting geophysical targets in an area where kimberlite indicator minerals, including G10 pyrope garnets, have been recovered.

In response, additional prospecting and ground geophysical surveys are currently underway in the vicinity of the new float discoveries. Indicator also said a previously announced 16,000-line-kilometer detailed helicopter-borne survey has been completed and 100 percent geophysical coverage of the Darby property has been achieved.

Nine kimberlites have been discovered at Darby, of which five have proven diamond-bearing, including the 12-hectare 'Iceberg' kimberlite. The project is currently under option to and operated by Teck Cominco.

Under the terms of the agreement, Teck Cominco can earn a 51 percent interest by spending $14 million before June 2010.

Upon formation of a joint venture, Indicator has the right to have its remaining 29 percent interest carried to production on a project loan basis. Hunter Exploration Group retains a 20 percent interest in the Darby Project.

Indicator is exploring more than 5.5 million acres of targeted ground in the Canadian arctic and has three key projects in Nunavut: Barrow, Nanuq North and Darby.