THE DIAMOND PAGE — BHP sampling Diamond Field’s Namibian sea

BHP Minerals has begun reconnaissance drilling and sampling on Diamond Fields Resources’ (TSE) 660-sq.-km marine diamond concession near Luderitz, Namibia.

The sampling follows a geophysical survey by Diamond Fields, preliminary data from which suggest that potentially diamondiferous gravel beds extend throughout much of the Luderitz concession.

During the current program (which is being carried out with BHP’s largest exploration vessel, the 120-metre Geomaster), 100 sites will be sampled in an effort to obtain geological data and diamond grade.

The Geomaster is equipped with “thrusters,” which allow it to position itself for drilling or sampling without having to lower and raise anchors. Also, the ship is fitted with a bulk-sampling tool designed to cut through sand, gravel, boulders and clay into bedrock and to pump the material to a processing plant on-board the ship.

The plant consists of a 150-tonne-per-hour screening section, a 10-tonne-per-hour dense media separation plant and X-ray facilities — all of which allow for complete processing of samples through to the final recovery of diamonds.

BHP and partner Benguela Concessions can earn a 50.1% interest in the Luderitz concession by carrying out a bankable feasibility study by August, 1996.

Elsewhere Overseas

* Willcroft, a subsidiary of De Beers Centenary AG, is increasing its interest in Williamson Diamonds to 75% from 50%. The government of Tanzania (through the State Mining Corp.) will hold the remaining 25% interest. Williamson operates the Mwadui diamond mine in north-central Tanzania. In addition, about US$8 million will be invested in upgrading the mine, including the installation of a diamond recovery plant.

De Beers has prospecting rights in Tanzania covering an area of 22,000 sq. km. * Garde, Societe D’Exploration Miniere (ME) has assumed control of Vologda Almaz Razvedka, a private Russian company which is exploring for diamonds in the Vologda region of northwestern Russia.

Garde has taken up the position that Princess Resources (VSE) formerly held in the Russian corporation.

* In Ghana, bulk sampling for diamonds and gold is about to get under way on Nora Exploration’s (ME) Kade concession.

Nora has outlined minable reserves of 600,000 cubic metres grading 0.62 carats of diamond and 0.26 grams gold per cubic metre. This reserve is based on sampling of mineralized gravel from 260 exploration pits in an area representing less than 10% of the total concession. Exploration is under way to prove up additional reserves for the balance of the concession. * Texas Star Resources (TSE) and Russian partner Arkhangel’skgeologia have formed a new company called Pomar Star. The jointly owned firm will take over all previous joint-venture activity, and will continue the evaluation of more than 400,000 hectares in the Archangel district of Russia.

Pomar Star holds a licence to explore for four years and mine for 20, with a 20-year extension available. A core drilling program has begun to assess more than 600 prospective anomalies on the licensed ground in Russia. * In Ukraine, summer exploration by partners Prior Resources (VSE), SouthernEra Resources (TSE) and Consolidated Newgate Resources (VSE) has outlined two prospective areas for kimberlite.

The partners have an exclusive contract with the Ukrainian state to explore and develop any deposits discovered as a result of the summer program. Prior holds a 65% interest, SouthernEra 25%, and Consolidated Newgate 10%. The two properties, covering 300-400 sq. km each in northern Ukraine, contain localized areas with anomalous concentrations of kimberlite indicator minerals. Pyrope garnets from these areas have compositions similar to those found in the producing mines in Yakutia.

An airborne magnetic survey is being organized to locate specific targets. Once this work has been completed, selected targets will be drilled. In southern Ukraine, the partners are negotiating for exploration rights in an area where four kimberlites were found in 1992-93.

* An airborne magnetic survey covering 40,000 line km will soon be carried out on Southern African Minerals’ (ASE) four Botswana diamond properties. Ground follow-up geophysical surveys are planned for the Molopo licences, where 35 kimberlite pipes were previously identified. Seven of the pipes are known to be diamondiferous, including the M-1 pipe which is the largest known kimberlite in the world, comprising more than 200 hectares.

A recent airborne survey on the Molopo licences identified at least 20 new anomalies, including two satellites to the M-1 pipe.

Once the ground surveys are completed, follow-up drilling will be carried out. * Airborne magnetic surveys are also slated for TNK Resources’ (CDN) diamond properties in Botswana.

On the Gope group of licences, more than 100 potential kimberlite targets were outlined. Later this year, ground geophysical surveys and soil sampling will be performed so that targets can be chosen for reverse-circulation drilling.

The Gope prospect, in central Botswana, contains seven known kimberlite pipes, five of which are diamondiferous. The prospect is adjacent to De Beers’ Gope 25 kimberlite pipe, which is currently being bulk-sampled. TNK has also transferred to a numbered Ontario company a 75% interest in three exploration licences in Botswana, known collectively as the Middlepits Prospect. In return, TNK receives 100,000 common shares in the company. The numbered company can increase its interest to 100% by reimbursing TNK for all of its costs of acquisition and exploration on, or in conjunction with, the licences.

The Middlepits prospect straddles a major north-east-trending structure which hosts the Jwaneng and Venetia diamond mines. The property contains several kimberlite indicator mineral anomalies and one small diamondiferous pipe. * Amarado Resources (VSE) has renegotiated the terms of two option agreements for exploration permits on 9,800 sq. km in Botswana.

The new terms call for payments totaling $250,000 plus 400,000 shares. Work commitments are reduced to $500,000 in the first year for a 25% interest;, $500,000 in the second year for a further 25%; and an additional $925,000 in the third year for the remaining 50%. The original agreement included a US$4.5-million work commitment over the 3-year period.

Regional surface work on a 2-by-2.5-km grid returned numerous kimberlite indicator minerals, as well as 17 individual macrodiamonds.

Exploration will get under way upon receipt of regulatory approval and arranging of funding.

* Trading of Sentinel Resources shares has resumed now that the company has clarified details of its activities in South Africa, at the request of the Vancouver Stock Exchange (VSE).

The company can acquire from Quatro C Mineral Consultants a 70% interest in the Klipdrift pipe in South Africa. To do so, it must meet the following conditions: issue 100,000 shares upon acceptance by the VSE; pay an aggregate of R450,000 ($180,000) plus half of the net profits from the property (to a total of R1.5 million); and issue up to 1.05 million shares upon filing a feasibility study or evaluation report.

The property is 30 km northwest of Kimberley, and Sentinel reports that a previous owner sold 34 diamonds totaling 3.5 carats from a sample of 18 tons of weathered kimberlite.

Sentinel carried out a bulk-sample program involving four pits on a 50-metre grid pattern, for a total of 180 tonnes. Two of the pits contained diamondiferous kimberlites, and eight diamonds have been recovered to date. * Namibian Minerals (VSE) is now listed on the Namibian Stock Exchange. A total of 2.4 million shares were subscribed for, raising $22.5 million (in Namibian dollars; at the Commercial Rand Rate, this is equivalent to C$8.5 million).

Proceeds will be used to fund bulk sampling on marine diamond concessions on the Namibian and South African coasts.

Saskatchewan

* New Nadina Exploration (VSE) and Kettle River Resources (TSE) have entered a joint venture on several properties in the province. The former will be the operator.

On the Garrick property near Garrick, in the Fort a la Corne kimberlite field, a large magnetic anomaly has been located. The partners hope to test the anomaly with a large well-drilling rig.