VR Resources Ltd. has received complete results from caustic fusion and mineralogy for all three drill holes completed into the kimberlite breccia pipe complex on its Northway property in Northern Ontario. Microdiamonds were recovered in 2 separate intervals within drill hole NW23-003, the last of the three first-pass drill holes into the 1.2 km magnetic anomaly at Northway. The intersection spanned 354 metres of kimberlite, for 723 kg of sawn NQ (47.6mm diameter) sample material.

There were no microdiamonds in 173 kg from NW23-002. Attributes for all four of the microdiamonds recovered in Hole 003 are the same as the microdiamond in Hole 001: transparent, colourless; clear, free of inclusions; fragment of a larger diamond. A +106 micron microdiamond was recovered at 335 m, with 3 additional +75 micron diamonds found from 488 ­ 510 m. They are hosted in pyroclastic kimberlitic breccia, KPK rock, characterized by: Concentrated chrome-diopside xenocrysts; Xenoliths of dunite, pyroxenite, and glimmerite, and; Autoliths of KPK rock.

Importantly, phlogopite xenocrysts and mineral grains within xenoliths plot within the kimberlite field on the Ti-Al plot, and in the kimberlite-orangeite field on the Al-Fe plot, consistent with hole 001. Further, titanium-potassium richterite in magmaclasts indicate an upper mantle source for the kimberlite. Holes 002 and 003 were collared at the same site located approximately 450 m to the northwest of Hole 001 located near the eastern margin of the breccia pipe complex where a microdiamond was recovered in the crater facies of kimberlite mudstone at the top of the pipe.

As such: Microdiamonds are present across 600 m of the breccia pipe complex. Microdiamonds are present over 220 vertical metres, starting at the top. The boundary conditions for the 1.2 magnetic anomaly at Northway are consistent amongst an array of different plan maps and 3D inversion block models.

That said, the new drilling shows that Northway may be either: a complex of separate, adjacent breccia pipes or; a single, rooted pipe that fans upwards into complex geometries at the top. Regardless: Hole 001 transected only 30m at the top of the eastern part of the complex before the drill hole caved and was abandoned; the KPK rock below the maar-facies with microdiamonds is untested; A longer intersection of pyroclastic kimberlite breccia was achieved in hole NW23-003 located some 450 m to the northwest, but the breadth of the magnetic center remains untested. Compositional studies for Hole 003: Initial results from two out of 13 samples of pelletal, accretionary diatreme breccia from drill hole NW23- 003 were obtained by petrology and analysis by an electron microprobe (EMPA) equipped with an Energy Dispersive Spectrometer (EDS) by Renaud Geological Consulting Ltd. (RGC) based in London, Ontario, with extensive experience in kimberlite exploration, geology and mineralogy.

Preliminary observations include: Ti-K richterite, a mantle sourced amphibole, in a glimmerite magmaclast nodule; Fine grained diopside, a clinopyroxene, containing 0.15 wt% chrome; Deep crustal glimmerite xenoliths composed of massive phlogopite are common; Phlogopite xenocrysts and mineral grains in xenoliths plot within kimberlite fields on Ti-Al plots, and in kimberlite-orangeite field on Al-Fe plots; Accretionary lapilli are mainly biotite-phlogopite (now illite), surrounded by illite, dolomite- ankerite, F-apatite, and perovskite; Pelletal lapilli are hosted in a groundmass of carbonate, Ti-Ba-biotite-phlogopite including glimmerite nodules, F-apatite, Al-spinel, clinopyroxene, Nb-ilmenite, monazite and perovskite.