DIAMOND PAGE — Drilling intensifies as Camsell Lake partners

Drilling is under way at the Camsell Lake project in the Northwest Territories, with the first 1,000-ft. hole now half-completed.

The hole was collared in kimberlite at a 45 angle and reportedly is still in kimberlite. Summer field work traced a diamond indicator train to the current target under a small lake.

The project is a joint venture among Toronto-listed Aber Resources (40%) and three Vancouver-listed juniors: Winspear Resources (30%), Amarado Resources (20%) and Consolidated Newgate Resources (10%).

Elsewhere in the Northwest Territories

* An airborne mag survey over six targets is under way on the Courageous Lake property, near Lac de Gras. The property, belongs to Winspear Resources, but Triex Resources (VSE) can acquire a half interest by spending $600,000 over the next three years.

* Major General Resources (VSE) and its partners are spending $1.5 million on properties in the Territories this year. Currently, the company is completing a sampling program with partner SouthernEra Resources (TSE) on the 75-N property. By spending $2.5 million over the next three years, Major General can acquire a 40% interest. In turn, International Diamond Syndicate can acquire 40% of Major General’s option by financing half of the expenditures. Saskatchewan

* Kensington Resources (VSE) has signed an agreement with Rhonda Mining (ASE) and a wholly owned subsidiary of Aaron Oil (ASE), giving Kensington the right to earn a half interest in certain properties near Fort a la Corne. The claims comprise 680,000 hectares and Kensington can earn its stake by spending $2 million and issuing 500,000 shares.

Recent drilling on the S-127224 claim, in the area known as Foxford, tested the continuity of kimberitic horizons that were tested by Rhonda on an adjacent claim. Two holes intersected about 35 metres of kimberlite containing at least two of the horizons that Rhonda found to contain diamonds. About 150 small stones from the two holes have been sent to England for examination.

Ownership of the Foxford area ground is in dispute and Kensington has signed agreements with both sides.

Manitoba

* Vancouver-listed Lucky Break Gold has acquired an 85% interest in a 40,000-hectare property near Snow Lake. Geophysical surveys have identified several anomalous targets for drilling. The property is adjacent to claims held by SouthernEra and south of a large claim block held by Australian-based CRA. The rest of the property is held by Island Arc Resources (VSE), and Alberta-listed Savanna Resources has a back-in right to half of Lucky Break’s interest.

Ontario

* A near-vertical drill hole, funded through the Ontario Prospectors Assistance Program (OPAP), has intersected a new kimberlite pipe near New Liskeard.

The property, owned by geologists Keith Barron and Robert Barnett and local prospector John Ewanchuk, had been previously explored for diamonds, but several intersting anomalies were not tested. Unlike several other pripes in the area, this discovery has a negative magnetic signature, which apparently rendered it a low-priority target.

Ewanchuk received an OPAP grant which enabled him to perform a ground magnetic survey and drill-test the pipe. In recognition of the OPAP assistance, the pipe has been named the “OPAP Pipe.”

United States

* Drilling on the Clums Fork joint venture in Alaska has recovered more than 20 tonnes of material from 27 holes: 15 holes on the Crazy 8 target and 12 on a second parallel target to the west. The 12.7-cm rotary drill samples are being logged and will then be processed to determine their heavy mineral and possible micro-macro diamond content.

Verdstone Gold (VSE) holds an 83.5% interest in the project, while Amcorp Industries (VSE) holds 10%. Whiskey Creek Resources (VSE) retains a 6.5% carried interest.

* In a development concerning another precious stone, sapphires, American Gem (TSE) has retained investment banker IBK Capital to assist with a private offering of up to 2 million common shares at $5 each.

Proceeds will be used to acquire three assest: the Gem Mountain sapphire deposit in Montana (estimated cost: $3.7 million); the Crystal Research lab ($1.9 million); and a cutting facility in Sri Lanka (cost unknown). The issue will also provide working capital to heat-treat, cut and process 600,000 carats of rough sapphires, transforming them into finished gemstones. Overseas

* Redaurum has identified more anomalies on its exploration lease in Botswana. The two new anomalies are southeast of the company’s DK3 kimberlite pipe. Drilling has started on both the pipe and the two anomalies. * In Zimbabwe, Argosy Mining (VSE) has discovered nine new kimberlites. The junior is part of a joint venture operated by Reunion Mining (a 32%-owned affiliate of TSE-listed Caledonia Mining). It is not known if any of these kimberlites contain diamonds.

Meanwhile, Argosy and Reunion have signed an agreement with SouthernEra Resources (TSE) and Zimbabwe-based Somabula Explorations to earn a 30% interest in eight exploration licences in the same county. The SouthernEra-Somabula joint venture can, in turn, earn a 30% interest in Argosy-Reunion’s adjacent Mbalabala concession.

* Diamond Fields Resources (VSE) will expand diamond production at its Loxton Dal and Frank Smith mines in South Africa. Yearly production at the former is set to increase to 64,800 carats, as a result of US$2.9 million being invested over two years. Output from the latter will jump to 25,200 carats in response to US$3.4 million being invested over four years.

A brokered private placement of 2 million units at 40 each will enable Ivory Oils & Minerals (VSE) to explore its various sea concessions of the western coast of South Africa. The concessions are held in a joint venture with Regional Resources, which is listed on the Johannesburg Stock Exchange. * In Brazil’s Minas Gerais state, a test plant is up and running on the Coronel Murta project. South Pacific Development (VSE) is processing river gravels in an effort to separate the diamond fraction and gold concentrate from coarse river gravels. The program is expected to establish a definitive grade for the deposit.

* In the same state, Southern Copper (VSE) has recovered six microdiamonds from a 100-kg sample extracted from its Coromandel project.

In preparation for bulk-sampling, the company is conducting magnetic survays and auger drilling to define the size and shape of the kimberlite body. * At another Brazilian project, Madison Energy (VSE) is investigating the Buriti Pegmatite’s potential for hosting crystal-filled druscs containing tourmaline, herderite, topaz and other collector specimens. The Buriti Pegmatite is a vertical dyke which shows evidence of having been mined superficially for gems in the past.