August 23, 2007
NEW KIMBERLITE PIPE DISCOVERED AT AVIAT
Stornoway Diamond Corporation (TSX-SWY)
is pleased to announce that a new kimberlite pipe has been discovered from drilling on the Aviat Project, situated on the Melville Peninsula in Nunavut. This new pipe, known as AV9, represents the third pipe-like body identified within Aviat's Tremblay Corridor where a total of twelve significantly diamondiferous kimberlites have now been discovered. AV9 lies four kilometers east-southeast of the diamondiferous AV1 kimberlite pipe, which has previously returned a diamond content of 0.83 carats per tonne (SWY Press Release of October 21, 2004).
Stornoway's CEO Eira Thomas stated: "The AV9 kimberlite pipe was discovered as a result of a concerted effort to identify the source of a high priority indicator mineral and diamondiferous boulder train within Aviat's 'Eastern Sheet Complex'. Drilling to date, including two separate 87 meter intersections, has not constrained the size of this prospective body which contains abundant indicator minerals and mantle nodules. The discovery of a new kimberlite pipe within four kilometers of the AV1 and AV4 pipes demonstrates the continuing exploration potential of the Tremblay Corridor and adds exciting kimberlite tonnage potential to the project."
AV9 is situated along the same regional structural feature that hosts the AV1 kimberlite, and which is believed to have influenced emplacement of the other Aviat kimberlite pipes and sheets. Approximately 262 meters of kimberlite core from the AV9 body have been recovered from four drill holes. Most of this material came from the first three holes on the body (331 meters total drilling); the fourth hole (26 meters total drilling) could not be completed because of regulatory time constraints with the drill contractor. Preliminary field logging describes AV9 as a transitional kimberlite pipe, containing both macrocrystic hypabyssal and transitional hypabyssal breccia phases. Indicator minerals and mantle nodules have been visually identified within the core. Kimberlite was intersected within a horizontal area measuring approximately 60 x 60 meters, and to a vertical depth greater than 100 meters, but neither the lateral nor vertical extent of AV9 are known at the present time. The third and fourth holes collared through approximately 15 meters of overburden directly into hypabyssal kimberlite. Core samples will be submitted for caustic fusion to establish preliminary diamond content once logging is complete, and results will be reported when available. Due to weather and logistical considerations, drilling will not recommence until the spring.
Other non-drill related exploration activities continue elsewhere on the Aviat Property, including mini-bulk sampling of known diamondiferous kimberlites, prospecting and till sampling. An update on all activities, including drilling within the eastern sheet complex, will be provided once the summer 2007 exploration is complete.
Stornoway Diamond Corporation is one of Canada's leading diamond exploration and development companies, involved in the discovery of over 150 kimberlites in six Canadian diamond districts. The Company benefits from a diversified diamond property portfolio, a strong financial platform and management and technical teams with experience in each segment of the diamond "pipeline" from exploration to marketing. Stornoway's diamond exploration programs are conducted under the direction of Robin Hopkins P.Geol. (NT/NU), Vice President, Exploration, a Qualified Person under NI 43-101.
On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ "Eira Thomas"
Chief Executive Officer
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in Company documents filed from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. The Company disclaims any intention or obligation to revise or update such statements.