DIAMOND NEWS ROUNDUP — Brazil focus for Canabrava

In Brazil, an intense $2-million exploration phase initiated in June, 1994, is nearing completion for Canabrava Diamond (VSE).

The project consists of 21 properties totalling 680,000 hectares, which are situated 400 km southeast of the capital city of Brasilia.

Exploration has consisted of airborne and follow-up ground magnetics, stream sediment-sampling, heavy mineral soil analysis, geological mapping, platinum-palladium geochemistry and ground follow-up of source areas for drainage systems containing diamonds.

Preliminary interpretation of the geophysics has delineated more than 600 priority targets on half of the 21 properties. Canabrava reports that ground work on about 100 of these targets indicates they are associated with kimberlite-lamproite vent complexes. Soil sampling over the vent areas returned pyrope and eclogite garnets, chrome diopsides, chromites and ilmenites. The company is correlating some of the magnetic anomalies as source areas for diamonds recovered in stream sediment samples. To date, Canabrava believes it has pinpointed 10 clusters of kimberlite pipes from the results of stream sediment-sampling.

In the Corrego dos Pedros area, 43 diamonds were recently recovered from stream samples, and the company is sampling several kimberlite pipes and related sediments in the source area of the creek in a bid to define drill targets.

Northwest Territories

* A spring exploration program budgeted at more than $1 million is to begin immediately on the Camsell Lake project.

The work will include airborne and ground geophysics, as well as 2,500 metres of drilling, the objective of which is to delineate further the CL25 kimberlite pipe and test eight other targets.

Two holes previously drilled on the CL25 pipe returned a total of nine macrodiamonds and 212 micros from 350.4 kg of split core.

Camsell Lake is a joint venture involving Aber Resources (TSE), 40%; Winspear Resources (VSE), 30%; Amarado Resources (VSE), 20%, and Consolidated Newgate Resources (VSE), 10%.

* Kennecott Canada and co-venturers Aber Resources and SouthernEra Resources (TSE) have exercised their option to acquire a 65% stake in the ATW property near Lac de Gras. Of the 65% interest, Kennecott holds 40%, Aber 15% and SouthernEra 10%. Exploration expenditures, as of the end of 1994, total $1.2 million.

The remaining 35% interest is held by ATW Resources, a Territorial corporation owned 40% by Almaden Resources (VSE), 20% by Troymin Resources (ASE) and 40% by Williams Creek Explorations (VSE). The Kennecott group will advance funding for ATW’s share up to, and including, placing a mine into production.

A spring program will include airborne and geophysical surveys in an effort to fine-tune drill targets. A drill program of three holes is planned for the beginning of April; one hole will further test the TR107 pipe, while the two other holes will test separate geophysical targets. For the summer months, till sampling will follow-up five anomalous diamond indicator mineral areas. * Partners Lytton Minerals (TSE) and New Indigo Resources (ASE) have intersected a second kimberlite pipe on their jointly held

3.6-million-hectare property north of Lac de Gras.

At least eight kimberlite indicator mineral trains are identified across the property, indicating the potential for a possible pipe cluster. Drilling will continue delineating the newly identified pipes, as well as test other targets. A second rig will be mobilized in the coming weeks. * A new diamond exploration initiative known as the Mackenzie joint venture involves Ashton Mining of Canada (TSE) with a 51% interest, Echo Bay Mines (TSE) holding 30%, and Pure Gold Resources (TSE) with the remaining 19%. The venture will carry out regional exploration on prospective terrain outside the pre-existing Ashton-Pure Gold projects known as the Lupin and Slave Regional joint ventures.