Lac des Bois Property, Northwest Territories

Location: Click to Enlarge The Lac des Bois property is located in the lower Mackenzie River area of the Northwest Territories. It is approximately 680 kilometres northwest of Yellowknife and 180 kilometres northeast of Norman Wells. Until early 2006, the Lac des Bois property was included in the Lena West property. Size: 92 staked mineral claims covering 182,956 acres. Ownership: 100% Diamondex. Exploration Expenditures: $0.494 million expended to December 31, 2006.

Overview:

Prior to February 1, 2006, the Lac des Bois property consisted of prospecting permits that had been granted to Diamondex as part of the Lena West Project area. During the last several months of 2005 and January 2006, the Company staked 92 claims to retain the mineral rights to most of the ground covered by prospecting permits that were expiring at the end of January.

Since 2003, the Lac des Bois area has been investigated using two different airborne geophysical surveys. These surveys consisted of a fixed wing magnetic survey and a magnetic/electromagnetic survey over a portion of the property. Two clusters of high priority geophysical anomalies have been identified as a result of these surveys. These anomalies have been further investigated through detailed ground magnetic surveys as well as a limited number of reflective/refractive seismic profiles completed across magnetic anomalies. In addition, two small diamond drill programs were undertaken at Lac des Bois in 2004 and 2005.

Forecast 2007:

In March 2006, detailed gravity surveys were conducted over 12 priority magnetic targets. The resulting gravity data have recently been compared with the earlier geophysical results (primarily magnetic data). The resulting models have been ranked in terms of priority for diamond drill testing which is currently scheduled for 2007.