VR Resources Ltd. has successfully intersected kimberlite breccia in drill hole NW23-003 collared into the heart of the 1.2 km magnetic anomaly on its Northway property in northern Ontario. Drill hole NW23-003 was completed to 627 m. Some 350 m of kimberlite breccIA was intersected below a sandstone cover starting at approximately 240 m depth, the same depth as in the previous two drill holes. The hole ended in xenolith-rich kimberlite breccian (XPK), open to depth;.

Kimberlite breccia from drill holes 1, 2 and 3 spans approximately 700 metres laterally across the breccia pipe complex, and approximately 320 metres vertically below the sandstone cover;; Continuous sampling of all three drill holes completed to date provides approximately 500 m of kimberlite drill core for approximately 1.3 metric tonnes of material for compositional studies and microdiamond evaluation by caustic fusion, to be completed at the SRC laboratory in Saskatoon. VR plans to have all of the samples prepared and shipped in the second week of July. Drill core photos.

A myriad of kimberlite textures were intersected in drill hole 003, from crystalline coherent kimberlite (CK) to xenolith-rich pyroclastic kimberlite breccias (XPK) to magma-clast - rich pyroclastic kim Berlite breccia (MPK) to kimberlite breccium with abundant fragments of entrained country rock (CKPK), as illustrated in drill core photos in Figure 1, 2, 3 and 4. Illustrations. Two figures provide the framework for the drill holes completed to date, on plan and section: "The magnetic anomaly associated with the kimberlite diatreme breccia intersected at Northway is from 900 - 1,200 metres across, as shown on the plan map in Figure 5. The boundary conditions for the overall anomaly are sub-vertical based on a new 3D inversion model of magnetic amplitude data; importantly, the boundaries are consistent with those in the original RTP_HD (horizontal derivative) map products from the high resolution drone survey completed last year. Drill hole NW23-003 is collared at the same location as hole 002, but inclined steeply to the north at -65o into the heart of the magnetic anomaly, that is, into the largest area of high amplitude magnetism directly above the vertical roots of the complex as viewed in 3D inversion profiles.

A caldera facies at the top of the breccia pipe is preserved in hole 001. Hypabyssal, coherent kimberlite phases (CK) are evident within xenolith-rich pyroclastic kimberlite (XPK) breccia phases in all three holes. The first two drill holes at Northway intersected various kimberlite breccia phases below a cover of Paleozoic limestone and sandstone, as shown in the schematic cross section.

Both holes were terminated because of caving in the sandstone, but the drill-stem integrity was maintained in hole 003 for a more complete intersection into the kimberlite breccia complex below.