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NUNAVUT - On-the-ground exploration spending at Stornoway Diamond's Aviat project in Nunavut will likely shrink to zero this year, said the company's manager of investor relations.

"It's looking like we probably won't even actually be on the ground up at the Aviat project," said Nick Thomas. "It doesn't reflect on our perception of the future of that project in particular, it's just the way it has to be for this year."

Stornoway employees work on mini-bulk sampling at the company's Aviat project 40 kilometres west of Iglulik during better times in the summer of 2008. Forty-three dry tonnes, of a total 200 tonnes, were extracted by hand from this location and yielded a diamond content of 210 carats per hundred tonnes. - photo courtesy of Stornoway Diamonds Cor

Keeping the economic crunch in mind and the dwindling market for diamonds, Thomas said the company will put the bulk of spending toward the company's most advanced project, Renard, located in Quebec.

"Obviously -- and you might be hearing this all over the place -- but it's the kind of year where you have to focus on the projects you think will bring back the best response to your stock price," said Thomas.

"Unfortunately, for us, right now, that's the Renard project," he added.

While the Aviat project, located on the Melville Peninsula 40 kilometres west of Iglulik, doesn't rank top spot in the company's portfolio, it is Stornoway's most developed project in the territory – and the company's second-most advanced project overall.

Last year, the company took a 200 tonne sample from the project and will process the remaining 150 tonnes this year, said Thomas.

"We'll be doing desktop studies on the best way to potentially mine the deposit if the values look high enough," he said.

If there is enough value potential in the stones to do so, the company will proceed with bulk sampling – but not this year.

"We have work we have to do to keep advancing the project using the least amount of money," said Thomas, explaining the company's "desktop focus."

Carroll Macintyre, the economic development officer for Iglulik, said he isn't too worried Stornoway won't be hiring workers from Nunavut for exploration projects this year.

"I'm not really concerned with Stornoway in terms of the money they put into the economy in Iglulik. I think it's going to be picked up in other ways," he said. "When I train people (in) Iglulik, I train them on an overall picture, not with any one particular exploration company in mind."

Ten men from Iglulik recently completed advanced training in Springdale, Nfld., all of whom will be going to work with Baffinland Iron Mines, said Macintyre.

Factor those jobs in with the the potential jobs for exploration projects in Roche Bay – last year eight people from Igluik were hired – and other projects in the area, and there might even be more people from Iglulik working, said Macintyre.

"The name of the game is: we have to have our people employed," he said. "You got to think ahead. One of the problems I find in the territory is there's not enough training going on. You have to train beforehand."

This train-in-anticipation-of-exploration philosophy is likely to continue until exploration picks up again in 2010. That's when many companies, including Stornoway, estimate spending and work will be back on the upswing.

"We're definitely poised to keep the work going in the North," said Thomas. "We don't intend to be in hibernation mode for too long."