Stornoway buys into Jackson Inlet diamond play
The Stornoway Diamond Corp. has made a deal with Twin Mining Corp. to buy its way into a promising diamond exploration project at Jackson Inlet in north Baffin Island, just east of Nanisivik.
Twin, a tiny company based in Toronto, had been exploring the site with the help of Kennecott Canada Exploration Inc., a subsidiary of the giant Rio Tinto firm in the U.K.
But Kennecott, which originally agreed to spend $10 million on an exploration program, pulled out of the deal because of difficulties raised by the firm that sold the exploration rights to Twin Mining.
Now Stornoway, an aggressive Vancouver-based firm that’s now involved in diamond exploration in all three Nunavut regions, has stepped in to help Twin Mining continue its exploration of the site.
Stornoway will pay $450,000, and promises to spend $1 million in exploration over the next year, spend $3 million over the next three years, and make other cash payments.
If Stornoway does that, they will earn a 51 per cent interest in the project. Bulk samples taken from the Freightrain kimberlite pipe have produced about 46 carats of diamonds, but Twin Mining has not yet done a pre-feasibility study on the possibility of establishing a mine.