The Back Lake Project is located between Munn Lake and Back Lake, about 270 km northeast of the City of Yellowknife in the Northwest Territories. The area has no direct road connection and is accessible by ski or float equipped aircraft only. A seasonal winter ice road to supply DeBeers Canada Gahcho Kue Project at Kenady Lake transects the northern parts of Munn Lake and Margaret Lake. All fieldwork was completed out of SouthernEra's Munn Lake tent camp located at Munn Lake. Access to the grids and drill sites is by helicopter, fixed wing aircraft and snow machine.

SouthernEra Diamonds Inc., as operator of the diamond exploration program, remained focused on the discovery of the source of the North Margaret Lake and South One kimberlitic indicator mineral trains at the Back Lake Project in the North West Territories. The North Margaret Lake mineral train is 7 km. Long and up to 300 meters wide while the South One train is approximately 4 km. long and 250 meters wide.

During 2006, the discovery of the kimberlitic body sources to the North Margaret and South One kimberlitic indicator mineral trains remained the focus of the diamond exploration program at the Back Lake Project which is located in the Southern Kimberlite Field of the Northwest Territories. The North Margaret Lake indicator train is up to 300 meters wide and seven kilometers long with individual till samples returning up to 159 kimberlitic indicators. The South One train is approximately 250 meters wide and 4.0 kilometers long.

During 2006, a drill program of 6 drill holes to test 2 geophysical and 2 geochemical anomalies in the West Munn, Munn Lake Sill North and North Margaret Train areas was completed between July 20th and August 1st. A total of 798.6 m was drilled. Kimberlite was not intersected.