Snowfield Development Corp.

Snowfield Development Corp.

May 02, 2007 07:00 ET

Snowfield Development Corp.: Ticho Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) - Snowfield Development Corp. ("Snowfield" or the "Company") (TSX VENTURE:SNO) is pleased to update the progress at its Ticho Project, host of the Mud Lake diamondiferous kimberlite discovery. The Ticho Project, located 55 km south east of Yellowknife, N.W.T., encompasses approximately 15,000 hectares. Progress has been substantial on a number of fronts in this significantly diamondiferous area of the South Slave Craton.

The Mud Lake Bulk Sample

As has been previously reported, the Mud Lake kimberlite is now being sampled by the extraction of a 500 tonne bulk sample of the diamond bearing kimberlite. This bulk sample will provide a better understanding of the economic viability of this discovery, which is enhanced by the proximity of the kimberlite bodies to transportation and economic infrastructure.

After blasting and excavating the majority of an access ramp through the granite cap covering the kimberlite sills, it was discovered that previously unknown and pre-existing fracture zones in the overlying granite was causing instability in the walls surrounding the ramp. This instability was recognized by Snowfield's superintendent as creating a possibly hazardous working environment due to falling rock. It was deemed prudent to resolve this situation by constructing catchment benches part way down the three sides of the access ramp cut. The design of these benches has now been approved by all relevant parties. The contractor hired by Snowfield to blast the access ramp is now actively pursuing completion of this bench and final blasting of the ramp to access the kimberlite zone.

Snowfield has all the necessary equipment on site to extract, crush, and bag the 500 tonnes of kimberlite. It is expected that these processes will be completed in time for the shipment of the kimberlite, by barge, once Great Slave Lake becomes ice-free. The kimberlite will then be onward shipped to De Beers Canada Exploration Ltd. (De Beers) Dense Media Separation plant located in Grande Prairie, AB. for further processing.

When Snowfield receives the concentrate from the De Beers' plant it will be split into three batches, with two of the batches being sent to Canadian laboratories providing the most expeditious service for diamond recovery, and the third batch being sent to De Beers' laboratory in South Africa for quality control.

Sipper Lake

Drilling has been ongoing at Sipper Lake to identify the second kimberlite on the Ticho project. Sipper Lake is approximately 1.5 km east of Mud Lake and is the source of highly elevated kimberlite indicator minerals (KIM) counts identified by down ice soil sampling analysis. These KIM have also confirmed their source as being diamondiferous.

The first eleven holes drilled to identify this kimberlitic source were drilled on a north-south axis along the approximate center of Sipper Lake, taking advantage of the winter ice platform. All holes encountered a diabase dyke with one or more intercepts. This is encouraging as diabase is strongly associated with the majority of kimberlite intercepts at the Mud Lake kimberlite complex. Drilling will now continue from the east and west shores of Sipper Lake, back towards the lake.

Red and Faya Claims

Snowfield has recently completed an airborne geophysical survey of the Red and Faya claim block areas. This survey, carried out by Terraquest Surveys Ltd., was conducted during the week of April 10th, 2007 on a 100 meter line spacing and covered 939 line/kilometers. The first batch of preliminary data has just been received by Snowfield and covers the area from Sipper Lake east to the border of the Red Claims, including the Faya claim.

Six targets have been identified by Snowfield's geophysicist as being worthy of further refinement, with two of these targets being rated four out of five on a prospectivity scale. One target in particular has a striking similarity to the diamondiferous Drybones Two kimberlite, discovered by New Shoshoni Ventures Ltd., approximately 6 km west of this target.

Wire Claim

Snowfield has received a report from Challenger Development Corp. (Challenger) on the Wire Claim. Snowfield holds an option to earn a 100% interest in the Wire Claim and has granted Challenger the right to earn a 51% interest from Snowfield upon escalating levels of exploration expenditure. The Wire claim is located approximately 16 km north of the Mud Lake kimberlite discovery and covers approximately 170 ha. (415 acres). An airborne geophysical survey identified an area of interest. This area was subject to a ground magnetometer survey to further clarify the anomaly. This ground mag survey confirmed a positive magnetic anomaly about 300 meters in diameter under a round shallow lake. Further exploration, including the drilling of two holes, has been recommended by the report writer. Snowfield awaits Challenger's intentions as to the schedule for carrying out this work.

Planned and Ongoing Exploration 2007

Snowfield has planned a vigorous exploration program for the rest of 2007. The Company has recently completed substantial upgrades to its base camp located at Pebble Beach on Great Slave Lake. This allows the Company to plan its exploration activities on a continuous basis with no interruption due to seasonal changes. To enhance this ongoing exploration, as previously announced, Snowfield deemed it prudent to purchase its own exploration diamond drill rig. For the past two weeks Snowfield has been constructing access trails to a number of previously identified drill targets not associated with Sipper or Mud Lakes. These trails will greatly enhance accessibility while concurrently reducing mobilization costs.

Snowfield has planned an extensive geochemical soil sampling program coupled with ground geophysical truthing of targets identified by previously conducted airborne geophysics. This includes the Hurcombe claim block which includes a geophysical target with characteristic similarities to the Drybones One kimberlite discovered by David Smith in 1994 and located approximately 5 km to the northwest.


Snowfield expects to ship its 500 tonne kimberlite bulk sample when barging conditions permit in early summer 2007. Ongoing drilling results will be released in a timely manner and currently in-progress geochemical and geophysical analyses will be disclosed upon receipt and interpretation.

On behalf of the Board of Directors,

Snowfield Development Corp.

Robert T. Paterson, President and Director

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