THE DIAMOND PAGE — A-154 results brighten spirits of

Drilling on the A-154 kimberlite prospect in the Lac de Gras area of the Northwest Territories is returning consistent results for 40-60 partners Aber Resources (TSE) and Kennecott.

Hole 5, drilled in the northern pipe, returned 135 macrodiamonds and 381 micros from 385.5 kg of core, or about 13.5 diamonds per 10 kg. Hole 7, drilled in the southern pipe, contained 57 micros and 26 macros in 52.8 kg of core, or about 15.7 diamonds per 10 kg.

The results compare well with discovery hole 2 (in the southern pipe) which contained 17.3 diamonds per 10 kg, and hole 3 (in the northern pipe) which contained 14.6 diamonds per 10 kg.

Results from the three remaining holes drilled this fall are still pending. Further delineation drilling on the A-21 and A-154 kimberlite pipes is expected to begin in the first week of the new year. Pending a review of complete results from this year’s program, the joint venture plans to conduct large-diametre drilling.

Elsewhere in the Northwest Territories

* Kennecott has released a postmortem on the results of this summer’s bulk test on the Tli Kwi Cho (DO-27) kimberlite pipe.

The sample included a pyroclastic and a diatreme phase. The pyroclastic sample totaled 3,003 tonnes, returning an average grade of 0.36 carats per tonne and an average diamond value of $21.70 per carat. The diatreme sample totaled 1,258 tonnes and graded an average of 0.01 carats per tonne with a diamond value of $33.50 per carat. This equates to $9.76 and 33.5 cents per tonne, respectively, for the two phases.

(By comparison, the Dia Met-BHP joint venture has reported values ranging up to US$150 per tonne.)

Kennecott plans to obtain a 20-30 tonne bulk sample from the nearby DO-18 pipe in early 1995; it will do so by means of large-diametre drilling. Other exploration plans for the WO claims include drilling high-priority kimberlite targets and performing sampling and geophysical work to identify additional targets.

Kennecott holds a 40% interest in the WO claim block, with a 35% interest split among Dentonia Resources (VSE), Kettle River Resources (VSE) and Horseshoe Gold Mining (ASE). The remainder is held by two Toronto-listed companies: Aber Resources (15%) and SouthernEra Resources (10%). * Airborne geophysical anomalies have returned indicator minerals for 60-40 partners RJK Explorations (VSE) and Garden Lake Resources (VSE) on their Point Lake property. The best results are from anomaly 66 and include six chrome diopsides and 36 pyrope garnets.

British Columbia

* Four new kimberlites have been found on Consolidated Ramrod Gold’s (TSE) Ice property in southeastern British Columbia. The property hosts six proven kimberlite occurrences, and small bulk samples have been collected from each of the pipes. Results are pending.

Saskatchewan

Kensington Resources (VSE) has received regulatory approval for two option agreements signed with Rhonda Mining (ASE) and Kimmswick Diamonds, a wholly owned subsidiary of Aaron Oil (ASE). Kensington can earn a halfinterest in several properties near Fort a la Corne by issuing 1 million shares and spending $3 million over three years. The properties are held jointly by Kimmswick and Rhonda.

Data are being compiled and drilling is planned.

Ontario

* The remaining core from the discovery hole at Kyle Lake, in the Spider No. 1 project area, has been processed. The property, in the Attawapiskat River district of northern Ontario, is operated jointly by KWG Resources (ME) and Spider Resources (ASE).

The final 5.2 metres of the hole yielded 5 macrodiamonds and 13 micros weighing a total of 0.046 carats.

The material submitted from the discovery hole now stands at 151.4 kg, which has yielded 31 macros and 94 micros.

Meanwhile, in the Spider No. 2 area, near Lake Temiskaming, additional drilling was completed earlier this fall on the Notre-Dame-du-Nord kimberlite. Sample material is being analyzed.

Ashton Mining of Canada (TSE) can acquire a half interest in any of the Spider No. 1 properties. The company has advised KWG and Spider that it plans to evaluate the Kyle Lake body and MacFadyen No. 1 kimberlites as soon as weather permits.

United States

* Arkansas diamond explorer Texas Star Resources (TSE) has completed the issue and sale of secured, exchangeable 8% special debentures totaling $1.3 million. These debentures are due in one year and are exchangeable, at anytime during the term, into secured convertible 8% debentures. The convertible debentures can in turn be exchanged into units on the basis of one unit for each 75 cents principal amount.

Each unit consists of one Texas Star share and warrant; each warrant entitles the holder to buy an additional Texas Star share for 75 cents. Overseas

* Sentinel Resources (VSE) has sold 86.27 carats from the first 16,000 tons of gravel processed at the Holpan alluvial project in South Africa. The diamonds were sold for 303,000 Rand (about $118,170).

Sentinel holds a 3-month option to acquire the project outright for 3 million Rand. During the option period, the company must pay the vendor 55% of diamond sales and cover all operating costs (projected at 75,000 Rand per 16,000 tons).

* An 80-hole program, budgeted at $2 million, has begun on Southern Africa Minerals’ (ASE) diamond licences in Botswana.

Initial drilling will be carried out on 20 targets on the Molopo licences. These targets are within the confines of a known diamondiferous swarm. Two of the targets are previously unknown satellite bodies of the M-1 pipe, which is recognized as the world’s largest diatreme.

Drilling will also take place on the Mabuasehube, Kokong and Lekgodu licences, where a minimum of 40 new targets have been identified from a recent airborne survey.

* Cliff Resources (TSE) has received results from bulk sampling carried out on the North Lobe of the Aries kimberlite pipe. About 670 tonnes of kimberlite were analyzed from two drill holes, LD01A and LD02. Sixteen diamonds weighing a total of 3.46 carats were recovered, yielding a grade of 0.52 carats per 100 tonnes.

Based on these results, Cliff and partners Triad Minerals and Black Hill Minerals have decided not to proceed with further bulk sampling. * Botswana Diamondfields (VSE) has been awarded five additional licences in western Botswana. They are adjacent to ground held by DeBeers Consolidated Mines, where kimberlite pipes are believed to have been discovered. The new licences comprise 4,200 sq. km, bringing the company’s holdings in the country to 10,200 sq. km.

The company expects to examine some 60 targets for kimberlite over the next 12 months and has drilled two initial targets. An additional six targets have been selected for the next phase of drilling, which is scheduled to begin shortly.

* In Russia’s Archangel diamond province, wide-diameter bulk-sample drilling is under way on the Verkhotina project. The project, 40% owned by Archangel Diamond (VSE), hosts seven known diamondiferous kimberlite pipes and a further 100 aeromagnetic targets within a 400-sq.-km area. The company plans to extract a 125-tonne sample from the No. 401 pipe, as well as 10 tonnes from each of two other pipes.