Project Summary

The IC Project is located about 90km southeast of Kugaaruk in Nunavut It is located in a region that is emerging as one of Canada’s most exciting new diamond districts. Trigon generated the project and staked the property in early 2004. The land package is now comprised of 48 claims covering approximately 115,437 acres. In 2004, the project was optioned to Contact Diamond Corporation (TSX: CO), the diamond exploration subsidiary of Agnico-Eagle Mines Ltd. The IC claim block also adjoins Trigon’s Tim Project.

Trigon is the operator of the project and holds a 49% interest in the project. Contact has vested a 51% interest in the property having funded $900,000 in exploration expenditures and $500,000 in certain cash and equity considerations. Contact is currently exercising its option to earn up to a 60% interest in the IC project by sole-funding a further $3 million of exploration expenditures.

Exploration on the IC block has established a well-defined train of kimberlite indicator minerals with mineral chemistry indicative of a diamondiferous kimberlite source. Airborne geophysical surveying has identified a number of high-priority geophysical targets in the vicinity of the train. The results of up-ice sampling, as well as the nature of the indicator minerals recovered, suggests multiple, local sources.

Area Potential

The project is located in the Rae Domain of the Western Churchill Province. The IC claim block was staked between the BHP Billiton property at Repulse Bay where diamond-bearing kimberlites have been bulk sampled and the Diamonds North Amaruk Project where multiple kimberlite occurrences have been found. Recent kimberlite discoveries by Diamonds North Resources Ltd. at the Amaruk project have yielded some high diamond counts and favourable stone size distribution. At Indicator Minerals Inc.’s Darby project, located approximately 175 km west of IC, new discoveries have confirmed the presence of larger kimberlite bodies.

This region of the eastern Arctic is showing the potential to host a significant, economic diamond discovery, and both Trigon and Contact regard the discovery of the source of the IC indicator train to be a high-priority exploration objective.

Exploration

Reconnaissance till sampling at the IC project in 2004 led to the recovery of pyrope garnets and chromites with upper mantle affinities in several locations and a concentration of grains within a discrete area near the IC property center.

This discovery prompted Trigon to pursue a follow-up program in 2005 of airborne geophysics and till sampling. Trigon flew 5,200 line-kilometres of high-resolution airborne magnetics, identifying 44 anomalies for follow-up prospecting and sampling. During the summer of 2005, 226 in-fill till samples were collected to better resolve the indicator mineral anomaly. Microprobe analyses of the grains confirm the presence of pyrope garnets, chromites and chrome diopsides.

Earlier this summer, Trigon mobilized crews to the site to undertake a ground-based program of target verification, prospecting and sampling in order to provide better definition of the source area of the indicator train. This work is in preparation for drill testing of kimberlite targets, scheduled for early fall.

During prospecting on the IC property in the summer of 2005, the field team discovered a 10m by 5m area of frost shattered boulders comprised of angular quartzite blocks with fracture-filling and disseminated sulphide mineralization. A grab sample was found to contain 1220 grams per tonne Silver, 1.5 grams per tonne Gold, 0.70% Copper, 2.51% Zinc and 0.69% Lead. The mineralization appears to be associated with a 15km long magnetic trend, visible in the airborne geophysical data.

A summer 2006 follow up program, run concurrently with the diamond exploration, has commenced for this polymetallic discovery consisting of confirmatory sampling, mapping, prospecting and an IP geophysical survey. Drill testing will follow based on the results of this work.

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