Rankin Inlet (Aug 11/03) - Shear Minerals recently announced the discovery of 11 kimberlite pipes on the Churchill Diamond Project near Rankin Inlet.

Nine of the pipes have been previously reported and another two, Tuktu-2 and Tuktu-3 are new.

On Tuktu-2 20 metres of kimberlite was intersected and on Tuktu-3 kimberlite was intersected at 60 metres.

The results from this phase is extremely encouraging, said Shear Minerals president Pamela Strand.

The pipes have been found within a 600 square kilometre range.

Strand adds with the results, where Shear owns 51 per cent of the play and Stornaway, which owns 35 per cent of the play, are recommending to BHP Billiton that the drilling program continue.

BHP, with 14 per cent of the action, previously committed to financing a 200,000 tonne bulk sample, comprised of a number of smaller samples.

At this time 100-150 kilograms from every pipe will be sent to the Saskatchewan Research Council in Saskatoon for diamond analysis.

Strand, a former Yellowknifer, took issue with previous unsuccessful diamond plays within the Meliadine area by Cumberland and Comaplex.

"There is no inference from their results to ours," said Strand, adding even if kimberlite discoveries are only kilometres apart the results can vary wildly.

While the results are encouraging at this time, Strand cautioned that bringing diamond plays into production can take years.

"If you look at Ekati and Diavik, for example, you'll see it took roughly 10 years to bring those mines into production," said Strand.

Ron Roach, senior administration officer with the Hamlet of Rankin Inlet, said if Shear's project moves ahead it will be very good news for the hamlet.

"Pamela was in and did her presentation and we think it's great news. Along with gold found here we're looking forward to mining development," said Roach.

"Gold and diamonds are in the area and the mining companies are very good in providing information and we have very good relations with these companies," said Roach.