Six months on from the April report there have been significant advances made by the company in the exploration of its Pulongskaya, Varzugskaya, Ermakovskaya and Tulomo-Teriberskaya licences in the Kola Peninsula.
All of the results from the 3100 stream and soil samples collected throughout the licences in 2004 have been received and the 2005 sampling season is now complete. Indicator mineral grains, whose chemistry strongly suggests a diamondiferous source rock, have been recovered from over twenty samples.
The remaining airborne geophysical survey in the Pulongskaya licence was successfully completed; interpretation of all of the data from the three surveys flown has highlighted over one hundred anomalies of interest.
Work is underway in planning a major drilling campaign in early 2006 which will reveal the sources of the targets generated from both the indicator mineral grain and geophysical survey results.
SAMPLING
The season began in early June, in all four licences. Work this year was split into two phases – the follow-up of results of interest from the 2004 programme and the continuation of reconnaissance sampling in the remainder of each licence area. As results were received during the season from the laboratories, so the number of follow-up areas increased.
There were no changes made to the methods of sample collection but trenches and pits were excavated in the areas of most interest to try to gain as much information as possible on ice transport directions and distances. In addition, where warranted, samples were collected from horizons within the pits to recover additional indicator minerals.
A grand total of 2521 soil and stream samples were collected by the end of the season in late September. Priority samples are en-route to the South African laboratories.
SAMPLE RESULTS
All of the 3071 samples collected in 2004 have been visually examined for kimberlite indicator minerals in the three size ranges +1.18mm, -1.18+0.6mm and -0.6+0.3mm. Due to their size, many of the samples were split into four aliquots; only 1 aliquot per sample was examined in the interests of swift sample turnaround. If the aliquot was positive, no further visual examination was undertaken of the remaining aliquots. If the result was negative, a decision was then taken on whether a second aliquot should be sent for examination.
Many samples contained one or more species of indicator mineral, with approximately 10% of the total samples being positive. The visual results are as follows: -
| Licence | Total Positive Samples | Garnet grains | Ilmenite grains | Chrome Diopside grains | Spinel grains |
| Pulongskaya | 62 | 5 | 40 | 23 | 56 |
| Varzugskaya | 54 | 5 | 30 | 19 | 327 |
| Ermakovskaya | 129 | 12 | 50 | 28 | 116 |
| Tulomo-Teriberskaya | 54 | 11 | 12 | 64 | 113 |
After visual examination, the surface textures of the grains were examined for evidence of distance (or duration) of transport.
Approximately 350 grains of interest were noted, with 195 being flagged as close to source or relatively unabraded during transport.
The glacial nature of much of the transporting medium requires that the geologists’ field notes be examined for remarks made at each sample site on the probable transport distance and direction.
All of the grains recovered have been subject to microprobe examination. This allows their individual mineral chemistries to be compared and contrasted to the chemistry trends exhibited by grains from known kimberlites. Conventional mineral chemistry interpretations are summarised below, although it must be noted that major advances have recently been made in this field of study by Mineral Services Limited of Cape Town. Professor John Gurney believes that much more information on the diamondiferous nature of the source rocks can be obtained using proprietary interpretive techniques. Accordingly, the grains have been submitted for further analysis.
At least 24 samples contain kimberlite indicator minerals whose chemistry suggests a diamondiferous source rock; there are frequently additional minerals in the same sample whose chemistry is of lesser interest. These numbers do not include chrome diopsides whose sources span such a wide range of rocks that they are of limited interest if they alone occur in a sample.
| Licence | Samples with Garnet | Samples with Ilmenite | Chrome Diopsides | Samples with Spinel |
| Pulongskaya | 2 | 3 | 2 discrete populations | 3 |
| Varzugskaya | 2 | 0 | 2 populations | 4 |
| Ermakovskaya | 2 | 0 | 2 populations | 2 |
| Tulomo-Teriberskaya | 3 | 1 | 3 populations | 2 |
(Note: - only the indicator mineral variety of the greatest interest is tabled)
GEOPHYSICAL SURVEYING AND RESULTS
The airborne electromagnetic survey in Pulongskaya, rescheduled from November 2004, was completed in late April. A summary of the interpretations carried out on all of the surveys indicates:
| Licence | Priority 1 Targets | Priority 2 Targets | Priority 3 Targets |
| Pulongskaya | 2 | 11 | 31 |
| Ermakovskaya | 2 | 12 | 16 |
| Tulomo-Teriberskaya | 4 | 10 | 32 |
Priority 1 targets are recommended for immediate drilling; Priority 2 targets are recommended for drilling if is there is some direct supporting (e.g. sample result) evidence and Priority 3 targets generally require both additional work and supporting evidence before drilling can be recommended.
Drilling is strongly recommended for the Blue Lake target in the Pulongskaya licence, where two Priority 1 geophysical anomalies have been interpreted, one underlying the lake in question.
OTHER WORK
Drilling was attempted on a geophysical anomaly, ERM 41, in the Ermakovskaya licence, but the drill did not reach the required depth to explain the anomaly. A visual inspection of the site was carried out in August by both Everfor’s Managing Director and Chief Geophysicist and a decision made to re-drill the anomaly in early 2006 with a different drill rig.
In the Tulomo-Teriberskaya licence, a single sample containing one garnet of moderate chemistry and three chrome diopside grains was taken in close proximity to a circular lake. The lake was a marked feature on a satellite image of the area, being blue in colour whereas surrounding lakes were black. Surface textures of the grains indicated that they had travelled only a short distance from source. Four holes were drilled around the lake as it was not possible to drill in the lake itself or to drilled inclined holes under the lake. Three holes intersected granite, but the fourth hole, to the south of the lake, encountered pyroxenite, indicating that some invasion of the bedrock has taken place by deep-seated igneous rocks. Additional sampling has since taken place, the results of which will determine the requirement to re-drill within the confines of the lake.
Rock samples were obtained from Ermakovska 7, one of the two known kimberlites lying within the Ermakovskaya licence. A sample was submitted for examination to E M W Skinner of Rhodes University in South Africa, a noted expert in kimberlite petrography. Skinner concluded that the rock was of high interest and assigned a diamond grade, on petrographic evidence alone, of the same magnitude as the grade obtained through bulk sampling. He also concluded that the presence of olivine melilitites in the Ermakovskaya licence was not a downgrading factor in the search for kimberlites either in this or other licences within the Karelian Craton.
IMMEDIATE FUTURE WORK
The samples taken as follow-up to grains of interest recovered from the 2004 work or over geophysical anomalies have been prioritised for shipment to the South African laboratories. The results will be used, together with all existing or expected data, to prioritise targets for a drilling campaign planned to start in mid-February 2006.
CONCLUSIONS
Results of significant interest have been generated from both the 2004 indicator mineral sampling and geophysical surveying programmes. These results confirm the diamondiferous potential of the ground within Everfor’s licences. In 2005, further sampling in the areas defined by these good results was undertaken to assist in prioritising targets for a drilling campaign to begin, on schedule, in early 2006.
D J Duncan
Managing Director
27th October 2005