DIAMOND PAGE — Sampling program for Nicholas Bay pipe

Partners SouthernEra Resources (TSE), Winspear Resources (VSE) and Adex Mining (TSE) plan to carry out a 2-3 tonne mini-bulk-sampling program on their newly discovered Nicholas Bay diamondiferous kimberlite.

The pipe is located within the Aylmer Lake West claim block, which is owned 32.5% by Winspear. SouthernEra has rights to a 34.425% interest, while Adex has a 33.075% stake.

The partners previously announced that 180 diamonds were recovered from 230 kg of core from two holes. Of these, only four were macrodiamonds (over 0.5 mm).

The partners note that of the 180 diamonds recovered, about 96% are white, 2% are milky and 2% are brown. It was also noted that about 60% of the white diamonds are inclusion free, and that the diamonds are well preserved with a high percentage of octahedrons.

Adex Chairman Bill Burton said the pipe is the most easterly diamondiferous kimberlite yet found in the general Lac de Gras region. The land-based sampling program will include 9-to-13 angle drill holes on lines spaced at 50-metre intervals.

Elsewhere in the Northwest Territories

* Continental Precious Minerals (ME) has made an offer to purchase all of the outstanding shares and warrants of privately owned Baffin Island Resources (BIR).

BIR holds 43 claim blocks totalling 1.3 million hectares on Baffin Island. Preliminary stream sampling has outlined numerous kimberlite indicator mineral anomalies on the properties.

Under the purchase offer, BIR shareholders will receive one Continental share for each BIR share held and one Continental warrant for each BIR warrant. Quebec

* A sampling program on Noront Resources’ (VSE) property holdings in the St. Lawrence Rift area near Montreal has located kimberlite indicator minerals. Geophysical surveys have outlined a round, buried, multi-phase, pipe-like structure, 1,000 metres in diameter, in the Mount Johnson area. As a result, the company has acquired an additional 13,642 hectares near Mount Johnson, which has been termed the Crystal Valley project.

Noront’s holdings in the St. Lawrence Rift area now total more than 23,100 hectares.

Overseas

* Ed Schiller, well known for his role in the Yamba Lake diamond project in the Northwest Territories, recently joined the board of Olds Industries (VSE). The company says that with this addition to its board, it plans to proceed more quickly in evaluating its diamond project in the People’s Republic of China.

* SouthernEra Resources has signed an agreement to earn a 75% interest in several farms near Kimberley, South Africa. These farms contain four closely spaced discrete kimberlitic heavy mineral anomalies 500-1,500 metres in diameter. SouthernEra will commence drilling, and bulk sampling if warranted, as soon as the necessary prospecting permits have been issued. * Ground geological and geophysical surveys have begun on Serengeti Diamonds’ (VSE) 8,860-sq.-km Dodoma Reconnaissance License in Tanzania. Twenty magnetic anomalies have been targeted for followup work. Each of these 20 anomalies corresponds to an area where significant garnet and ilmenite indicator minerals have been found. Previous studies have also identified 18 kimberlites in the license area.

Serengeti has the option to earn a 40% interest in, and is operator of, East Africa Diamond Exploration, which holds 36.75 million acres of diamond leases and licenses in Tanzania.

* Redaurum (TSE) has entered into an option agreement to acquire a 100% interest in a producing alluvial diamond mine in southern Africa, subject to due diligence.

The mine is located in a region recognized for its gem-quality diamond production, and has produced gross revenues to date in excess of $20 million. The evaluation of the project is expected to take 45 days to complete after which a formal purchase agreement will be entered into.

The mine has sufficient reserves to sustain ongoing operations for a minimum of three years. The mine property also includes a possible ore resource of up to 12 million cubic metres of gravel, which is currently under exploration and development.