The secretive Canadian arm of South African diamond giant De Beers stepped into the public forum for the first time in years by recently agreeing to form a joint venture with Aaron Oil (ASE), a Calgary-based junior with ground in the Lac de Gras area of the Northwest Territories.
Although details will be withheld until a formal written agreement is signed, a spokesman for Aaron called the Monopros investment “an excellent deal for a junior.”
In the recent past, Monopros has shied away from partnerships with publicly-traded companies, preferring to carry out diamond exploration programs across the country under a thick cloak of secrecy. But during its 30-year history, Monopros has, at times, operated under joint ventures with Canadian juniors, said Jerilynn Lamb, a spokesman for the company. Aaron’s 103,000-acre property is located about 90 miles northwest of the diamond-bearing pipe discovered by Dia Met Minerals (VSE) and BHP Minerals Canada and abuts the western boundary of a Monopros claim block. A somewhat reticent Lamb said Monopros plans to sample the Aaron ground during the current field season and that “there is always a possibility” of Monopros signing deals with other juniors in the area.
She declined to comment on a widely-circulated rumor of a Monopros “discovery” near Lac de Gras but did confirm that the De Beers subsidiary has yet to drill a hole in the area.
Meanwhile, led by Dia Met Minerals, diamond stocks resumed their upward climb as hungry investors dined on rumors of drilling and discovery on the BHP-Dia Met joint venture. At press time, Dia Met was trading at $16, up $1.25 from the previous week.
Taking advantage of the unimpeded vistas available in the barrens, fly-by detectives have been able to pinpoint BHP’s drill sites. They say the operator is hopping from target to target and has recently shipped diamondiferous core from a second hole to C.F. Minerals Research diamond laboratory in Kelowna, B.C.
The joint venture, which declined to comment on the hearsay, is said to be completing their fourth hole.
BHP can earn a 51% interest in Dia Met’s Lac de Gras play by spending a minimum of US$2 million per year on exploration until a feasibility study is complete and arranging financing of up to US$500 million for the first mine. Dia Met will retain a 29% interest in the claims, while two individuals will hold the balance.
Fast becoming the largest landholder in the Lac de Gras region, rival Kennecott Canada recently concluded yet another joint venture agreement. By making cash payments of $60,000 and spending $1.25 million on exploration by May 29, 1996, Kennecott can earn a 61% interest in the Amad claims owned by partners Teryl Resources (VSE) and Calco Resources (VSE).
Kennecott can earn an additional 4% interest by spending a further $2 million. The Amad claims are surrounded on three sides by the BHP-Dia Met claim block, and lie 20 miles west of the discovery site.
In other Lac de Gras developments, airborne geophysical surveys were reported to be under way on two properties south of the discovery pipe: a 96,000-acre block shared by Troymin Resources (ASE), Almaden Resources (VSE) and Williams Creek Explorations (VSE) and a 550,000-acre block where Kennecott is earning a 70% interest from Kalahari Resources (VSE).
About 50 miles west of the discovery, crews hired by Greater Lenora Resources and Winspear Resources (VSE) are ready to begin exploration on the joint venture’s 7,750-acre Lake Providence property. With consultation from the Saskatchewan Research Council, the partners will follow-up numerous “pip-like bodies” identified by airborne geophysical (VLF and magnetometer) surveys. Companies reporting diamond exploration news from other parts of the country include:
— Rhonda Mining (ASE) — the Calgary-based junior has acquired the right to earn a 70% working interest in claims owned by Claude Resources (TSE) at Sturgeon Lake, Sask. The claims total 31,500 acres and cover two magnetic ring structures. Rhonda plans a 3-hole, 1,000-metre program to probe one of the structures believed to be the source of an ice-rafted block of sediments interbedded with diamondiferous kimberlitic volcanics found earlier on the property.
— Cyclone Capital (VSE) — the junior has staked an additional 34 claims on Somerset Island after recent field studies of kimberlite occurrences on the island. The company now holds a 50% interest in 87 claims covering nearly 333 square miles, or 213,000 acres.
— Deak Resources (TSE) and Gwen Resources (ASE) — the partners have identified a number of kimberlite dyke occurrences and a “bulls-eye” magnetic feature on their Buffonta gold property near Kirkland Lake, Ont. — Glencairn Explorations (ASE) — the Toronto-based junior plans to complete a detailed geophysical survey in preparation for drilling on its 480-acre Alfie Creek property in Morrisette and Arnold twps., near Kirkland Lake.
Be the first to comment on "Deal opens Monopros to scrutiny"