ARTEMISIA - CORONATION GULF

Vaaldiam reported that 562 diamonds with a total weight of 13.03 carats have been recovered from 88.25 dry tonnes of kimberlite from the Artemisia kimberlite pipe, indicating a recovered grade of 14.77 carats per hundred tonnes (cpht). The three hectare Artemisia pipe is situated on the KIM property located in the Coronation region of Nunavut, Canada.

Following the analysis of sampling results, the decision was made by Vaaldiam to terminate the option on the property and all expenditures incurred up to Mar/07 were written off.

11 kimberlites have been discovered (between 1999 and 2005). Eight of these have proven to be diamondiferous. In addition, a number of high priority airborne geophysical targets, unsourced kimberlite float and diamond indicator mineral dispersion trains remain to be evaluated on the properties. The area of the Hunter East block is characterized by numerous diabase sills. Geochemical work is reported to confirm the presence of a minimum of 3 kimberlites on the propery within a relatively small area. The "MJ" kimberlite indicator mineral (KIM) train is 4 km long and samples from the train contain kimberlite. The source of the "MJ" KIM train anomalies remains unexplained (Dec/98). The three hectare Artemisia pipe is the largest kimberlite pipe found to date on the property. (Dec 31/06) The Perseus kimberlite is located 37 kilometres south of the Artemisia pipe. The Perseus kimberlite dike was drilled and sampled by Ashton once in 2000 and again in 2002. A total of 318 kilograms of kimberlite from drill core was sampled and 87 diamonds between 0.1 millimetre and 0.5 millimetre were recovered. (Dec 7/06) Numerous other kimberlite targets outside the “MJ” area remain to be fully evaluated. News Updates Vaaldiam Resources Ltd. reports that 562 diamonds with a total weight of 13.03 carats have been recovered from 88.25 dry tonnes of kimberlite from the Artemisia kimberlite pipe, indicating a recovered grade of 14.77 carats per hundred tonnes (cpht). The three hectare Artemisia pipe is situated on the KIM property located in the Coronation region of Nunavut, Canada. The five largest stones recovered from the mini-bulk sample weighed 1.01, 0.29, 0.27, 0.18 and 0.16 carats.