"What she was talking about was a Montreal free trade zone for diamond business," said Mayor Dave Lovell.

"I don't know how legit she was," he added, noting she had no business cards and stumbled when asked for her office phone number.

"She told me she dealt with Montreal area mayors," Lovell said. "She definitely knew a lot about the diamond industry."

President of the Yellowknife Chamber of Commerce, Garth Malakoe also spoke to the woman.

"I spoke to her a little bit but she was purposefully vague about who she was working for," said Malakoe.

Anne Griffiths was listed as a consultant for Natural Resources Canada on the guest list for the function, said one of the organizers.

Malakoe said that regardless of the woman's connection to government, the incident served to strengthen his awareness of the national competition for diamond dollars.

"I was troubled by the fact that there's other people onto this, no matter who they are," said Malakoe. "Clearly, in other parts of Canada they're trying to do the same thing we're trying to do."

A natural resources spokesman said the department had provided funding for a diamond sorting course in Montreal.

John Embury, press secretary to Minister of Natural Resources Ralph Goodale, said he was unaware of any department plan to establish a diamond industry in Montreal, but added: "It sounds like they are a step or two ahead, because they have the expertise there."

He said the woman was not an employee of the department, but could be working for it on a consultative basis.

Western Arctic MP Ethel Blondin-Andrew said she would like to see a diamond cutting and polishing plant in the North.

"Unequivocally yes," she said.

A downturn in the mining sector means the North must push for new development, she said.

She added if it came down to a diamond facility located in the North or Montreal, she said her commitment is obviously to the North.