Arctic Bay (Feb 16/04) - Twin Mining has discovered 12 new indicator clusters on their Freightrain play, located 100 kilometres northwest of Arctic Bay.

"It's very significant. The area has really blossomed out, it's like a flower," said Hermann Derbuch, company chairman, president and CEO.

The clusters, based on the recovery of kimberlite indicator mineral grains from soil samples and stream sediments, suggest the presence of previously unidentified kimberlite bodies.

Of the 426 samples collected, 110 contained indicator minerals, states a news release issued by Twin Mining on Feb. 6.

Seven of the 12 clusters are located in the eastern half of Twin Mining's new claim block. The other five clusters are within three to six kilometres of the Freightrain and Cargo 1 pipes.

The high numbers of indicator minerals from the five areas provide strong evidence of kimberlite bodies under shallow overburden cover, states the release.

"These new indicator mineral clusters are in addition to the previously reported finds of the 1.7 km diamondiferous kimberlite fragment corridor between Freightrain and Cargo 1 pipes reported on Sept 25, 2003 and the eight potential kimberlite targets at Cargo 2 reported on Sept. 18, 2003," said Derbuch.

Twin Mining's play is located on the Brodeur Peninsula, which is at the northwestern tip of Baffin Island.

In the same area, Kennecott Canada Exploration and Rio Tinto just recently announced the discovery of three diamondiferous kimberlite pipes, near the Twin Mining Cargo and Freightrain pipes.

"They have discovered three pipes and have identified another 20 drilled targets," said Derbuch.

Twin Mining is looking at opportunities to partner with a larger organization and form a joint venture, said the Twin Mining president.

"One thing that we have already identified is that our diamonds that we discovered have a very course distribution which has not been matched." Derbuch said.

"Basically what that means, while I don't want to beat my chest or brag, is that we find larger diamonds."

Having Kennecott and Rio Tinto in the area is adding credibility to the Twin mining finds, said Derbuch.

"The finds are in a favourable area, an Arctic desert environment. We don't have to look for pipes under lakes. In part they are in outcrop or close to outcrop which simplifies development and reduced cost.

"Furthermore, we have discovered nearby to Freightrain and Cargo 1 a very significant natural deep sea harbour in Jackson Inlet. In fact, we've tested it by bringing in a deep sea vessel to take out a box sample," said Derbuch.

With ice breaker capabilities, Twin Mining could have low-cost access to their play for up to five months of the year.