Yellowknife (Jan 17/07) - Drilling results from the Gahcho Kue diamond project continue to spur more exploration as the consortium of companies which own the property wait for a ruling on their appeal in NWT Supreme Court.

Winter drilling on the project, located 90 km southeast of De Beers' Snap Lake mine, began last Friday, said Patrick Evans president and chief operating officer of Mountain Province Diamonds.

Up to 30 workers will take part in this year's push and 26 holes are expected to be drilled, he said.

"We are expecting to be finished by the end of April," he said.

The $30 million drill program will focus on gaining more information on the volume, geology and density of the Tuzo kimberlite pipe as well as upgrading the Tuzo resource, said Evans.

The Gahcho Kue diamond project is a joint-venture between three companies.

De Beers Canada is the operator of the project and has a 51 per interest, while Camphor Ventures has a 4.9 per cent share and Mountain Province has the remainder.

Results from the 2006 drill program have been released and a total of 31 holes were drilled last year, said Evans.

The main focus of last year's program was to get further results from the kimberlite bodies of the Tuzo pipe and the 5034 North Lobe, he said.

"It's looking very promising," he said.

Current estimates peg Gahcho Kue production at three million carats annually over the life of the mine.

While drilling has begun again, the joint-venture group is still waiting on a judicial decision as to whether the project will have to undergo an environmental impact review or an environmental assessment.

An environmental assessment would take between one to two years to complete, while the impact review would take several months longer, Vern Christensen, the executive director of the Mackenzie Valley Environmental Impact Review Board (MVEIRB), said in October.

On June 12, 2006, MVEIRB decided to change the environmental assessment being carried out at Gahcho Kue to a full environmental impact review.

This was followed by an NWT Supreme Court appeal of that decision by De Beers and its partners on Nov. 21. Now both MVEIRB and the proponents await a decision from the judge.

"We are hoping to hear a decision either at the end of January or early February," said Evans.

Christensen said he isn't exactly sure when a ruling will come down.

"At this point, we haven't heard anything back, nor have we heard anything as too when to anticipate the decision," he said.