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The Company controls properties in six areas totaling 7,554 acres that are all located over what management considers to be the most prospective diamond exploration terrain in Montana (which includes the diamondiferous Homestead Kimberlite). An aggressive regional exploration program is expected to discover additional kimberlite/lamproite pipes in this under-explored area to the south of known kimberlites in Saskatchewan and Alberta, Canada.

Delta discovered the first in-situ microdiamond ever found in Montana on its Homestead kimberlite, southeast of Lewistown.  In addition, the Company controls part of the Three Buttes kimberlite (discovered by Delta).

Delta Mining's Micro Diamond.  Click picture to enlarge.

Montana has experienced sporadic diamond exploration throughout the years and its potential to host diamond deposits is considered to be excellent by the leading experts in the field. Alluvial (secondary or placer) diamonds have been found throughout Montana over the years. Of particular note is the Lewis and Clark diamond found near Great Falls in 1990. The 14-carat stone sold for $80,000.

The region is underlain by a stable portion of the North American continent (the Wyoming Craton) that exhibits the typical geological characteristics fundamental to hosting diamond deposits. This hypothesis is supported by Delta’s portfolio of diatremes, including a kimberlite and a lamproite together with the presence of the microdiamond in the Homestead Kimberlite pipe. Developed kimberlite pipes are found along the southern margin of this stable region to the south of Montana, in Wyoming and Colorado, and also along the northern margin in Canada.

Delta believes that diamond exploration in Montana will accelerate as Canadian diamond activity advances towards the Montana border following recent discoveries in neighboring Alberta and Saskatchewan. The first significant Canadian diamond deposits were discovered at Lac de Gras in the Northwest Territories in 1993. This led to the opening in 1998 of the Ekati Mine (51% BHP and 29% Dia-Met Minerals) which is expected to yield over $15 billion in diamonds and produce 10% of the world’s diamonds. The nearby Diavik Mine (60% Rio Tinto, 40% Aber Diamond Corp) is expected to produce 5% of the world’s diamond production (with a value of about $7 billion) following its opening in 2004. De Beers Snap Lake Mine is scheduled to commence production in 2006 as Canada’s first underground diamond mining operation.

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