Ashton finds third kimberlitic body in Otish Mountains

A new kimberlite belt is emerging in the Otish Mountains region of north-central Quebec, as demonstrated by the discovery of a third kimberlitic body by partners Ashton Mining of Canada (ACA-T) and Soquem on their Foxtrot joint venture property.

Dubbed Renard 3, the new kimberlite was discovered just 200 metres east-southeast of the diamondiferous Renard 2 body. It was the first geophysical target to be tested during the current round of drilling. A vertical hole intersected kimberlitic rock under 22 metres of overburden and was still in kimberlite at 90 metres of depth when Ashton announced the discovery. Ashton will move on to drill-test additional geophysical targets after completing a second hole at Renard 3.

Last fall, Ashton and Soquem, a Quebec Crown corporation, discovered two kimberlitic bodies during a first pass of drilling designed to test four high-priority magnetic geophysical targets on the 1,536-sq.-km Foxtrot property. Budgetary constraints forced Ashton to limit the length of each of the holes to 100 metres.

The first body, known as Renard 1, yielded 54 microdiamonds and five macrodiamonds from 205.8 kg of sampled core. (A macrodiamond is defined here as exceeding 0.5 mm in at least one dimension.) Renard 1 consists primarily of hypabyssal material, with brecciated material occurring near the bottom of the hole.

While the microdiamond results from Renard 1 were considered positive, Ashton was particularly encouraged by preliminary test results of Renard 2, which was found beneath 18 metres of overburden 1 km south of Renard 1. In total, 116 micros and 29 macros were recovered from 163.1 kg of core samples, including five stones greater than 0.5 mm in two dimensions. Based on the first two core holes, Renard 2 was interpreted to be a complex body that shows evidence of multiple intrusive phases. Ashton’s vice-president of exploration, Brooke Clements, describes Renard 2 as a xenolith-rich autolithic breccia, with local variations of xenolith and olivine macrocrysts.

Ashton has since recovered a further 2 tonnes of sample from an additional four core holes drilled into Renard 2 during this winter’s field program. The mini-test sample will be processed for commercial-size diamonds through Ashton’s dense media separation plant in North Vancouver. Results should be available sometime in the second quarter.

Ashton and Soquem are 50-50 partners in a joint venture that currently holds more than 3,800 sq. km of mineral permits in north-central Quebec. The permits are broadly held in two areas: the Otish Mountains region, 275 km northeast of Chibougamou, and the Caniapiscau area, 500 km east-northeast of Radisson.

Results from heavy mineral sampling during the past two years have convinced Ashton that there are additional kimberlitic bodies to be discovered in the Otish Mountains area. Ground geophysical surveys are being completed over some 10 airborne magnetic targets in the anomalous indicator mineral areas. The highest-priority targets will be drilled during the current campaign. In addition, a helicopter-borne magnetic and electromagnetic survey will be flown over the Renard discovery area to identify new targets for ground follow-up. For this summer, an ambitious program of heavy mineral sampling is planned.

Elsewhere in the Otish Mountains areas, the diamond division of BHP Billiton (BHP-N) is in the midst of a drilling campaign designed to test anywhere between 10 and 20 kimberlite targets on the adjoining Portage project. Since striking a deal with Majescor Resources (maj-v) last summer to earn a 56% interest in the large property block, BHP completed an 8,500-line-km airborne geophysical survey that was followed by ground investigations of some 30 targets, including further till sampling and geophysics.

Ashton sparked an unprecedented staking rush in Quebec late last year after confirming that the Otish Mountain discoveries were diamond-bearing. Canabrava Diamond (CNB-V) wasted little time entering into an option agreement with Majescor on a large package of ground known as the Mistassini project. The northern boundary of the claim group is roughly 180 km south-southwest of the Renard discoveries and 30 km west of the Beaver Lake kimberlite. Beaver Lake was discovered in the late 1970s by Uranerz Explorations & Mining while exploring for uranium. The Beaver Lake body consists of a weakly diamondiferous hypabyssal facies pipe and an adjacent dyke swarm. Ditem Explorations (dit-v) optioned the Beaver Lake property from Uranerz in 1998 and can earn a 49% interest by spending $1.5 million over four years.

Mistassini

Based on the results of widespread reconnaissance heavy mineral sampling, Majescor staked some 1,710 sq. km comprising the Mistassini project. Canabrava can earn a half-interest by spending $1.3 million on exploration and issuing 100,000 shares over three years.

“The claim-staking was based on kimberlitic indicator minerals recovered from reconnaissance and follow-up sampling, and not closeolgy,” Canabrava’s vice-president of exploration, George Read, told delegates at the recent convention of the Prospector & Developers Association of Canada, held in Toronto. More than 500 indicator mineral grains have been recovered and identified. The mineral suite is dominated by ilmenite, with pyrope garnet and chromite being well-represented. “We have some nice G10 garnets and a few high-chrome chromites [up to 64.2% Cr2O3],” said Read.

A 7,370-line-km airborne fixed-wing magnetic geophysical survey was completed in January. Selected targets are being further defined with high-resolution heli-mag in preparation for drilling. The Ashton and Soquem joint venture also holds a 1,040-sq.-km land package in the immediate area.

Pure Gold

In the meantime, Pure Gold Minerals (PUG-T) is preparing to drill-test at least four targets on the Tichegami River property. The project comprises 81 sq. km immediately north of the Beaver Lake kimberlite. Under an option agreement with Ditem Explorations, Pure Gold can earn a 60% interest by spending $1 million over three years, paying $130,000 before July 2002 and issuing 200,000 shares.

Also, Pure Gold has optioned a half-interest in a 164-claim package that surrounds the Beaver lake kimberlite. Under terms of that agreement, Pure Gold must issue 300,000 shares to Ditem within the year and spend $500,000 on exploration over the next two years. The partnership expanded the Beaver Lake property by staking a further 628 mineral claims to the south, while picking up a separate block of 302 mineral claims to the southeast, giving Pure Gold exposure to 275 sq. km.

A 3,200-line-km airborne magnetic survey being flown over the Beaver Lake south properties will tie in with airborne surveys completed over both the Tichegami and core Beaver Lake properties. Follow-up till sampling and ground geophysics will be carried out over selected targets.

Dios Exploration

Dios Exploration (DOS-V) was spun-off from Sirios Resources (SOI-V) early this year and will focus on diamond exploration. The Montreal-based junior holds five properties totalling 532 sq. km in the Beaver Lake area and within the Mistassini project area of Canabrava and Majescor.

Dios also holds four non-contiguous property blocks totalling 721 sq. km, which were staked along the periphery of Ashton and Majescor’s core holdings in the Otish Mountains. The four properties are known as the 33 Carats project. The Eastern and Northern property blocks are within 20 km of the Renard discoveries, and all four blocks sit within 30 km.

Last fall, Dios initiated a helicopter-borne till sampling program over the four properties, collecting 185 samples, which weighed an average of 30 kg each. These included 75 samples on the Eastern block, 46 on the Southern block, 40 on the Northern block, and 24 on the Western joint-venture block. About half the samples have been processed so far, and various kimbe
rlitic indicator mineral have been recovered, including chrome diopsides (4-5 per sample), ilmenites, chromites and three pyrope garnets.

In January, Dios optioned to Strathmore Minerals (STM-V) a half-interest in both the 53-sq.-km Western claim block and a smaller, 16-sq.-km property in the Beaver Lake area. Strathmore must spend $1.1 million on exploration over three years. More recently, Strathmore struck a deal with Dios to earn a half-interest in a 58-sq.-km property in the Wemindji area, on the east side of James Bay. The property is up-ice of where Majescor, during recent drilling, encountered narrow dyke-like intervals of kimberlite. Dios recovered an unspecified number of indicator mineral grains while conducting reconnaissance till sampling over a small portion of the property in 2001. Under terms of the option, Strathmore must spend $750,000 over three years, pay $18,000 and issue 100,000 shares.

Dios has engaged Haywood Securities to conduct a $1-million private placement financing consisting of 65% flow-through units and 35% non-flow-through units priced at 55 apiece. Proceeds will be used to fund follow-up exploration of core holdings in Quebec and Ontario.

Strateco Resources (RSC-V) is flying a 1,960-line-km geophysical survey at 100-metre spacing over its wholly owned 130-sq.-km Cardinal property, 4 km east of the Beaver Lake kimberlite. At the same time, the company is carrying out a grid sampling survey, collecting one till sample every 1,000 metres for a total of about 120 samples. This phase of exploration, designed to generate targets for summer drilling, will cost $185,000.