DIAMOND PAGE — NWT Diamonds partners find 23 new kimberlites

Exploration drilling at the NWT Diamonds project in the Northwest Territories has uncovered 23 new kimberlite bodies, raising to 100 the number identified to date.

Sixteen of the new discoveries lie within the Core group of claims, ownership of which is split between BHP Diamonds, with a 51% interest, and Dia Met Minerals (DMM-T), with 29%. The remaining 20% is split equally between Dia Met founder Charles Fipke and his former prospecting partner, Stewart Blusson.

The remaining seven new kimberlites were found in the outlying Buffer zone claims, which are also held by BHP (51%), Dia Met (7.8%), Blusson (31.2%) and Fipke (10%).

To determine the diamond potential of each new discovery, core samples are being analyzed by an independent laboratory for microdiamonds.

In addition, delineation drilling was carried out on two previous discoveries — the Koala North and Beartooth pipes. Further microdiamond analysis will determine whether bulk sampling is warranted. Based on initial microdiamond analysis, Dia Met reports that both pipes show economic potential comparable to that shown by the Panda and Koala pipes.

The Koala North and Beartooth pipes are in the immediate vicinity of the mine development area, near Lac de Gras, though Dia Met says both pipes appear to be comparatively small.

The joint-venture partners are in the process of constructing Canada’s first diamond mine. The US$700-million project is about 40% complete and proceeding on schedule for commercial production in the autumn of 1998.

Plans call for five kimberlite pipes — Panda, Misery, Koala, Sable and Fox — to be mined over 17 years. The owners are

confident that, with the discovery of additional pipes, the project will have a mine life of 25 years

or longer.

The five pipes will be individually mined by open-pit methods, followed by underground mining on the Panda and Koala.

As of July 31, $455 million had been spent on the project, including exploration expenses.