DIAMOND PAGE — Cross Lake joint venture has hopes pinned on

Drills are turning on the Cross Lake kimberlite target in the Northwest Territories, with at least five holes planned.

Ashton Mining of Canada (TSE) is earning a 51% interest from Pure Gold Resources (TSE) and Tenajon Resources, which will end up with 24% and 25%, respectively.

Exploration has outlined a train of diamond indicator minerals leading to Cross Lake, a 40-hectare body of water.

John Kaiser and Andrew Muir, analysts at Pacific International Securities, say little information has been released on the nature of the indicator minerals.

However, they note that Ashton’s rapid optioning of the property and push drilling may suggest the minerals are indicative of a diamondiferous pipe. Elsewhere in the Territories:

* A general malaise in diamond exploration has dampened the fund-raising plans of Canadian Diamond Investors Fund I Limited Partnership. Each of RJK Exploration (CDN), Greater Lenora Resources (TSE) and Garden Lake Resources (VSE) has cancelled $300,000 financings as a result of the partnership’s inability to close its fund as anticipated.

Saskatchewan

* Sampling results from drilling on the Snowden property near Fort a la Corne have returned 19 microdiamonds and one macrodiamond from three holes. Total weight: 78.57 kg.

The best sample, weighing 38.72 kg, contained nine micros and one macro. The three vertical holes were drilled up to 400 metres apart and intersected a flat-lying horizontal apron of kimberlite which is believed to be at least one kilometre from a volcanic core or crater.

The project is held 35% by Rhonda Mining (ASE), 35% by Aaron Oil (ASE), 10% by Lucky Break Gold (VSE) and 15% by Surf Oil. Winslow Gold (VSE) has a 5% carried interest.

* Elsewhere in the Fort a la Corne camp, a low-level aeromagnetic survey is planned for the 4,000-hectare joint venture of Big I Developments and Rhonda. The program will be followed by detailed ground magnetometer work to locate drill targets.

Big I is completing a statement of material facts in an effort to return to active status on the Vancouver Stock Exchange.

* War Eagle Mining (VSE) and Great Western Gold (VSE) will soon begin a $600,000 drill program on their Candle Lake joint venture, also near Fort a la Corne. The project includes 148 properties comprising 104,000 hectares, on which 90 targets have been identified.

Initially, 10 priority targets will be drilled.

* To fund its share of the Candle Lake joint venture, War Eagle has completed a private placement of 240,000 units at $1.20 per unit.

It has also staked an additional 30 targets, covering about 8,000 hectares, elsewhere in the province.

* Consolidated Pine Channel Gold (VSE) and Golden Peaks Resources (VSE) finally have received results from analysis of drill core at their Tobin Lake joint venture.

Alas, the intersection, which was visually identified as kimberlite, turned out to be a “shale-siltstone-lignite breccia.” Not to worry, though; the companies report that the core does contain indicator minerals of a kimberlitic origin.

A detailed ground geophysical program will define drill targets more precisely.

Ontario and Quebec

* Marum Resources (ASE) has staked 110 claim units near Kenora, Ont., on behalf of the Kenora Rift exploration joint venture. Marum owns half of the property and is project operator.

United States

* Golconda Resources (ASE) has intersected a lamproitic pipe on its property in Idaho. Hole ME-1 intersected 65 ft. of lamproitic material. Hole ME-2, a 400-ft. stepout from ME-1, intersected the lamproitic pipe at 33 metres after passing through 18 metres of yellow clay. The hole, which has reached a depth of 75 metres, still contains lamproitic material.

These holes were drilled in an area from which a 19.5-carat diamond was found in 1947.

Overseas

* A joint venture agreement with Crystal River Resources gives Pacific Comox Resources (VSE) some financial support.

Crystal River can earn a half interest in Pacific Comox’s North American gold, as well as its African diamond and gold projects, by contributing a minimum of US$12.5 million.

Subject to final due diligence, Pacific Comox has four joint venture agreements on gold and diamond concessions in Ghana, West Africa. * Southern Copper (VSE) intends to acquire claims covering two known kimberlite intrusions in the Corrego D’Anta district of Minas Gerais, Brazil. Diamonds up to one carat in weight have been reported from one of the pipes. The company is also conducting ground and airborne work on its 21 claims in the Coromandel district of Minas Gerais in an attempt to identify kimberlites and establish trenching and soil-sampling targets.

* The Siberian subsidiary of Chatham Created Gemstones, a U.S.-based firm, will soon begin producing diamonds for the jewelry market. The company expects to produce about 1,000 carats per month of diamond rough in various colors, including yellow, blue and red. The diamonds, which are limited in size to 1-1.5 carats, will be sold as cut stones, at 10% of the price of natural gems.

* Components for the Mazaruni River diamond-gold recovery plant are being shipped to Guyana for assembly, reports Exall Resources (TSE). The plant can process up to 200 cubic metres per hour and is scheduled to be operating on the Mazaruni River in the first quarter of 1994.

An environmental impact study, which was funded by the Canadian International Development Agency (CIDA), has been submitted to the Guyana Geology and Mines Commission.

* Cliff Resources (TSE) says 460 carats of diamonds from the Aries pipe in Western Australia have been appraised at US$120 per carat. The stones, two of which exceed three carats in size, are 70% gem quality.

A feasibility study on the Aries pipe is planned for the spring of 1994. Meanwhile, Hollander Bros. of Antwerp, Belgium, has been

appointed the company’s exclusive marketing agent for stones produced from the Australian projects.