Juniors eye Quebec diamond play

Vancouver — The discovery of two diamondiferous kimberlitic bodies in the Otish Mountains by Ashton Mining of Canada (ACA-T) has prompted many junior explorers to tie up ground in the promising region of northern Quebec.

New Blue Ribbon Resources (NBL-V) is the latest company to enter the area. The junior inked a deal to pick up a 90% stake in the 28-sq-km Lac Joubert property by paying $15,000 by Jan 15, 2002 and issuing 200,000 shares. The newly acquired ground lies on the east side of Majescor Resources(MAJ-V)- BHP Billiton (BHP-N) Portage property and less than 35 km up-ice from Ashton’s new diamond discovery.

Boulder Mining (YBR-V) recently picked up two properties some 120 km southwest of the diamond find. The VVS property covers 8,094 hectares some 25-km southwest of Majescor’s Portage project. Boulder can earn 100% of the property by paying $30,000 and issuing 300,000 shares before Jan. 20, 2002. Moving 5 km to the southwest, Boulder can also earn 100% of the 4,047-hectare VVT property by paying $15,000 and issuing 100,000 shares, also before Jan 20, 2002. The vender retains a 2% gross overriding royalty on both properties.

The newly acquired properties host a number of magnetic geophysical anomalies associated with a northeast striking structural zone that parallels the favourable Kapuskasing structural zone, which cuts both Majescor’s Portage project and Ashton’s diamond discovery. An airborne geophysical survey is being planned for the properties.

Due to the amount of staking in the region brought on by Ashton’s discovery, confirmation of title for the newly acquired ground has not yet been received from the Government of Quebec.

In November, Boulder acquired the WALP Kimberlite properties, situated near the intersection of the Temiskaming and Kapuskasing structural zones. The junior plans on drill testing several magnetic geophysical anomalies outlined on the project early in January.

Meanwhile, Majescor has arranged a $400,000 financing to continue its aggressive exploration in the region. The junior agreed to sell 500,000 units priced at 80 each. A unit comprises one share and one-half warrant. A full warrant entitles the holder to purchase one share at $1 for 18 months. Shares in Majescor have surged 50% over the past month. In June of last year, BHP, now part of BHP Billiton, inked a deal to earn a 56% stake in Majescor’s Portage claims.

During December, Canabrava Diamond (CNB-V) signed a deal to earn a 50% interest in Majescor’s Mistassini project near the Otish Mountain region.

Under the deal, Canabrava can earn its stake by spending $1.35 million on exploration over three years, paying $25,000 and issuing 100,000 shares to Majescor. Majescor will act as operator of the project. The agreement is subject to regulatory approval and the shares issued to Majescor will have a one-year hold period.

Encompassing 1,216 sq. km, the property stretches from the northern tip of Lake Mistassini to the western limit of the Otish Mountains. Staking of another 494 sq. km still requires the approval of the Ministry of Natural Resources Quebec.

Reconnaissance sampling by Majescor this year has turned up several kimberlite indicator mineral dispersion trains on the claims. The company says that the trains have a different chemistry and assemblage, and therefore source, than those at the Portage property also in Quebec.

Adjacent to the Portage property and about 85 km north of Mistassini, joint venture partners Ashton and Soquem recently tabled encouraging diamond counts from two kimberlitic bodies, dubbed Renard 1 and 2.

Also in December, Iriana Resources (IR-T) inked a deal with Majescor on its Portage Extension project. Iriana can earn a 50% stake in four separate properties, totaling 25,050 hectares by paying $35,000 and spending $750,000 over three years.

Majescor had 18.4 million outstanding shares, 24.7 million shares fully.