DIAMOND NEWS ROUNDUP — Lytton and New Indigo pull more diamonds from N.W.T.

At the jointly held JD/OD claim block of Lytton Minerals (TSE) and New Indigo Resources (ASE), large-diameter drilling has recovered about 20 tonnes of material from 11 holes drilled to date.

The drilling is aimed at taking a 100-tonne bulk sample from the land-based JD/OD-1 kimberlite pipe.

The block is part of the joint venture’s 9-million-acre land package in the Northwest Territories.

Further processing of core from delineation drilling on the JD/OD-1 pipe returned the following results:

* 86 macrodiamonds and 134 microdiamonds from 160.35 kg of core for hole JD-28;

* 21 macros and 45 micros from 103.1 kg for hole JD-29;

* 250 macros and 199 micros from 381.5 kg for hole JD-33;

* 558 macros and 381 micros from 547.73 kg for hole JD-35; and * 72 macros and 77 micros from 108 kg for hole JD-40.

To date, a total of 2,415 kg of processed core from the JD/OD-1 kimberlite has yielded 1,764 macros and 2,589 micros (or 7.3 macros per 10 kg). Of the macros recovered, 467 are greater than 1 mm in size and 38 are greater than 2 mm.

Meanwhile, large-diameter, as well as delineation, drilling continue on the JD/OD-1 pipe. Over the winter, emphasis will be placed on processing the bulk sample and drill-testing a second kimberlite pipe, situated a short distance from the JD/OD-1.

Elsewhere in the Northwest Territories

A ground follow-up program of till sampling, geophysical surveys and prospecting is under way on the Warburton Bay project, 115 miles northeast of Yellowknife.

Athabaska Gold Resources (TSE) can earn a 75% interest in the 70,000-hectare claim block by paying $112,000 and issuing 200,000 shares. The company must also spend $700,000 on exploration over the next three years.

A magnetic airborne survey over the project area has defined 21 potential kimberlite targets.

* No further exploration work will be conducted on the MacKay Lake property held by Adex Mining (TSE), following a drill program by partners United Compass Resources (VSE) and Lucero Resource (VSE).

Drilling, consisting of 1,172 metres, failed to intersect any kimberlite in the four geophysical anomalies tested.

The property is 80 km southeast of the BHP-Dia Met project.

Ontario

Drilling of the OPAP kimberlite pipe in northeastern Ontario continues, while joint-venture partners Consolidated Pine Channel Gold (VSE) and JNR Resources (VSE) have already selected 14 other drill targets on their property.

On the OPAP pipe, the partners have intersected kimberlite at 57 ft. in hole DDH2-95, with continuous kimberlite beyond its termination at 521 ft. Hole DD3-95, 246 ft. northeast of DDH2-95, intersected kimberlite at 53 ft., continuous to 521 ft. where the hole was terminated. DDH-4-95, about 246 ft. north of DDH3-95, collared in kimberlite at 37 ft., where drilling is ongoing.

Kimberlite xenoliths were found in the core from each of these three holes, indicating multiple eruption phases of the original kimberlitic volcanoes. Chemistry on a small, earlier sample from the OPAP pipe suggests that the pipe likely contains diamonds.

Brazil

Canabrava Diamond (VSE) and Teck (TSE) have acquired, on a 50-50 basis, two producing alluvial diamond properties in the Rio Araquaia region of Brazil.

The partners expect to generate quick cash flow from the project, which has a good history of recovering high-quality diamonds of up to 40 carats in size. A preliminary reserve estimate is in excess of 24 million cubic metres of gravel grading 0.1 carat per cubic metre. A 3-month program of bulk sampling will further define the reserves and grade.

A camp is established, and included with the properties are 14 jigs capable of treating 3,000 cubic metres of gravel per day.

The vendors retain a net profit interest of approximately 30%, and will receive cash payments of $25,000, plus $5,000 per month until production begins.

Canabrava is owned 54% by Southwestern Gold (TSE).

Africa

Independent valuations of diamonds from Toronto-listed SouthernEra Resources’ kimberlite dyke in South Africa have assigned an average value of US$85.29 per carat.

To date, 263.39 carats have been recovered from 48.02 tonnes of kimberlite taken from the main pit for an average grade of 5.49 carats per tonne, giving a value of US$468 per tonne. In addition, 22.05 carats have been recovered from 17.66 tonnes of fault breccia material containing small amounts of kimberlite.

The largest diamonds recovered are gems with carat weights of 10.51, 8.6, 4.02, 3.85, 3.64, 2.96, 2.75, 2.31 and 2.22. In addition, there are 32 stones weighing between 1.01 and 1.88 carats, and 67 weighing between 0.5 and 0.99 carat.

Reconnaissance sampling continues both to the east and the west in an attempt to extend the Main zone and explore for parallel structures. To date, trenching along the main fissure has confirmed a continuous strike length of more than 3,000 metres with an average width of 1 metre.

Two 5-tonne samples are being taken from sites 650 metres and 1,100 metres east of the main pit.

Australia

* Russian explorer Archangel Diamond (VSE) has agreed to acquire an 80% interest in Australian-based Ellendale Resources.

The deal, which is subject to a due diligence review, would see Archangel provide a $400,000 convertible loan facility to Ellendale, as well as long-term financial and project management.

Ellendale holds varying interests in 770 sq. km of ground in the West Kimberley province of Western Australia. The project area contains 23 known lamproite bodies, 13 of which contain macrodiamonds.