A total of eight kimberlites have now been discovered by Contact Diamond at Timiskaming, including the diamondiferous 95-2 pipe and the recently discovered MR8 pipe. Contact Diamond is committed to a long term program of exploration leading to an economic discovery in the area, and retains the best land position and database.

Contact Diamond Corporation announced option agreement with three vendors for 10 claims and mining patents covering 700 hectares adjacent to its 100% owned Timiskaming diamond exploration project. The option agreement gives Contact Diamond the right to earn a 100% interest in the mineral rights of the properties, subject to certain cash, equity and royalty considerations, and exploration expenditure commitments.

The claims and patents are located in the Elk Lake area close to the Lapointe 1 kimberlite pipe, discovered by Tres-Or Resources Ltd. and Arctic Star Diamond Corp. in May.
The new land package covers nine geophysical targets with characteristics similar to the Lapointe discovery. The agreement also contains an option whereby the property vendors may re-acquire, in joint venture, a maximum 10% interest in the properties upon an exploration expenditure of $1 million contributed prior to the completion of a feasibility study. The option agreement is subject to regulatory approvals and is expected to close before December 15th.