De Beers' Victor mine has established the James Bay Lowlands as a region with the potential to host world class diamond deposits. The open-pit mine should reach full production in late 2008 and produce a total of six million carats. The mine has an expected life of 12 years and a total project life of 17 years. The mine site will include an onsite processing plant, quarries, sand and gravel pits, and an all-weather airstrip. Annual revenue from the mine is expected to be between $200 million and $300 million per year, with a per carat value of $500, one of the highest in the world at today’s prices.

The Ontario Geological Survey has documented 29 kimberlites in the James Bay Lowlands, 17 belonging to De Beers and nineteen of them containing diamonds.

The kimberlites are clustered in different areas of the James Bay Lowlands, approximately 50 to 150 kilometres from De Beers' Victor diamond mine. The Ranulf property is also situated in the area surrounding the T1, U1 and U2 kimberlite pipes recently discovered by Metalex Ventures Ltd. In the first six months of 2005, more than 5,000 claim units were staked in the Attawapiskat region of northern Ontario. The claims cover more than 81,000 hectares and represent 18 per cent of the total area staked in Ontario.

The James Bay Lowlands are underlain by the eastern extension of the Archean Superior Province basement rock and younger Phanerozoic, Silurian sediments. The James Bay Lowlands lie on the Eastern Canada shield, which has only recently seen a surge in exploration. The geology indicates, good, if not better potential for diamond discovery than the Northwest Territories, based on the presence of an archaen craton, which is a thick and cool lithosphere. There are also well developed, deep structures favorable for the ascent of kimberlite magma. These conditions are ideal for large-scale mining operations and high quality diamond deposits.

Most known diamond deposits are located on cratons and the world’s largest, the Superior Craton, covers most of Northern Ontario, including the James Bay Lowlands. The Superior Craton is one of only two cratons in Canada with the proven potential to host economic diamond concentrations, yet it remains largely unexplored. Both Alliance and Attawapiskat lie on the Superior Craton. Much of the current diamond exploration in Ontario centres on the James Bay Lowlands and the area from Cobalt to Lake Timiskaming, according to the Ontario Ministry of Northern Development and Mines.

Several junior mining companies in Chalice and West Timmins have staked claims and taken bulk samples in the area. The results have led to macro and microdiamonds with good long-term potential for diamond production. The primary regions of discovery in the James Bay Lowlands are from Cobalt to Lake Timiskaming, Wawa to Kapuskasing, Marathon to Geraldton and northwestern Ontario near the Manitoba border.

Geological Map Of James Bay Lowlands