Visible diamonds found in Aber Resources drill core

Within the next 3-4 weeks, Aber Resources (TSE) expects to receive results from an 800-kg kimberlite intersection from the first hole drilled on the A-154 anomaly near Lac de Gras, N.W.T.

The results are anxiously awaited as two diamonds were visually identified during examination of the core. One diamond is estimated to weigh 1.75 carats and the second, 0.25 carats. Both are described as “clear, white and colorless.”

Vancouver mining analysts have high expectations for the pipe, as it is situated near the spectacular 93-J pipe on the neighboring project of Dia Met Minerals (TSE) and BHP Minerals Canada. It is also highly encouraging to see this size of diamond within exploration-stage core drilling. Further results are awaited for the A-21 kimberlite, where the previously reported discovery hole returned 154 diamonds (38 of which are macros measuring more than 0.5 mm in one dimension) from 154.6 kg of core. Results are also awaited from other targets drilled this year.

The discovery of the A-21 and A-154 targets is good news for Kennecott Canada, which can earn a 60% interest and which has more targets that may warrant bulk sampling. The company is almost finished processing a bulk sample from the Tli Kwi Cho pipe, in which it has a 40% interest. Aber’s recent exploration success has not gone unnoticed by institutional buyers, judging by the increase in its share price to $11. The company’s geologists, working with Kennecott’s team, are enjoying one of the best success rates for finding diamondiferous kimberlites outside of the Dia Met-BHP claim blocks.

Elsewhere in the Northwest Territories

n In its latest annual report, Dia Met Minerals (TSE) provided more details on its activities in the Lac de Gras camp. This project is at the feasibility stage, with a 20-year mining plan focused on four diamondiferous kimberlites situated within a few kilometres of each other. The four pipes — Koala, Fox, Leslie and Panda — lie beneath lakes of the same names. Proposed is an open pit, followed by underground development of at least two pipes.

In the first three years, the Koala-Panda pit is expected to provide 6,000 tonnes of mill feed per day. In year four, throughput would increase to 18,000 tonnes per day, with the addition of ore from the Fox pit. Production would continue for the next 17 years, with the Leslie pit coming into production in year seven. Exploration will continue for some years to come and new discoveries could extend the life of the project well beyond 20 years. n Further north on Victoria Island, Major General Resources (VSE) and Ascot Resources (VSE) have started field work to test geophysical targets on their equally owned land package. Ascot is the operator and can earn an additional 25% from Major General by spending $1 million.

The 1994 program, budgeted at $1 million, will include geological reconnaissance, till sampling, lake sediment sampling and helicopter-borne magnetic surveys.

n Ground geophysical surveys have been carried out on 16 targets on Amarado Resources’ (VSE) Camsell Lake property.

Later this summer and fall, a program of till sampling, additional ground geophysical surveys and diamond drilling will be carried out over 75 targets. The property is owned 40% by Aber Resources, 30% by Winspear Resources (VSE) and 10% Consolidated Newgate Resources (VSE).

Saskatchewan

n Amarado Resources has been informed by project operator Coronation Mines, a private company, that ground geophysical surveys are under way on the Fort a la Corne, Pasquia Hills and Elbow Diatreme properties.

Amarado can earn up to a 51% interest in each of these projects. Quebec

n Joint-venture partners KWG Resources (ME) and Spider Resources (ASE) have entered an agreement to earn a 60% interest in 80 claims in the Temiskaming area from Goldhunter Explorations (ASE). The claims, situated in Nedelec, Montreuil, Baby and Guerin twps., contain 18 magnetic anomalies that may represent kimberlite pipes.

KWG and Spider will test each geophysical target with a single drill hole. In addition, they will issue 10,000 and 100,000 shares, respectively, to Goldhunter. The partners can earn a further 10% interest in the properties by spending an additional $250,000 on exploration.

Drill-testing of targets is to begin in the near future.

United States

n Excavation and processing of up to 10,000 tons of material from the KL-1 kimberlite pipe are under way at Redaurum’s (TSE) Kelsey Lake project in northern Colorado. The largest diamond recovered is a 0.55-carat gem-quality stone.

The program, budgeted at US$200,000, is scheduled to run through the current field season, which ends in November. Redaurum has a 25% stake in the project, which is managed by the Colorado Diamond Corp.

Overseas

n South Africa Minerals (ASE) has closed a private placement of 2 million units at $2 each to raise $4 million. Each unit consists of one share and one warrant and is exercisable at $2.30 on or before June 9, 1995. Proceeds will be used to explore properties in Botswana.

n Redaurum has been granted two additional prospecting licences covering 1,514 hectares in the central Botswana. Exploration will focus on an area containing a known kimberlite, about 15 km east of the De Beers-Debswana Letlhakane mine which produced 995,398 carrats in 1993.

Current work on the Redaurum permits includes an orientation geophysical survey and soil sampling. Ultimately, bulk sampling will evaluate the kimberlite’s diamond potential.

In other news, Redaurum’s half-owned River Ranch diamond mine, in Zimbabwe, produced 14,551 carats during May. A 38,500-carat parcel of stones has been sent to Antwerp to be sold. This parcel includes large gem-quality diamonds ranging in size from 19 to 31 carats.

n Serengeti Diamonds (VSE) has completed a private placement of 2.4 million units at 45 cents each for total proceeds of $1.1 million. Each unit consists of one share and one warrant. The warrants have a 2-year term and are exercisable at 45 cents in the first year and 52 cents in the second. The shares and warrants are subject to a 1-year holding period.

The placement will be used to explore the company’s 40%-owned holdings in Tanzania. Test production at three mining leases, using a 50-tonne-per-hour processing plant, is scheduled to begin within the next six months. n Caledonia Mining (TSE) reports that its 32%-owned affiliate, Reunion Mining, has discovered a further eight kimberlite pipes in Zimbabwe. To date, 16 have been found.

In the Katete cluster, six new pipes were confirmed by deep pitting and 15 airborne magnetic targets remain to be tested.

A third kimberlite pipe has been outlined in the Quest cluster, and 12 targets remain to be tested.

A new kimberlite pipe was also outlined in the Mlibizi cluster and a further 19 airborne magnetic targets have yet to be explored.

Argosy Mining (VSE) can earn a 40% interest in Reunion’s Zimbabwe projects.