DIAMOND NEWS ROUNDUP — Mountain , Glenmore OK sampling

A mini-bulk sampling program is proposed for the 5034 kimberlite at the AK property, 150 km south of Lac de Gras, N.W.T.

The property is held 50% by Mountain Province Mining (VSE), 40% by Glenmore Highlands (ASE) and 10% by Camphor Ventures (VSE).

Large-diameter drilling will be used to collect an initial 100-tonne bulk sample from the pipe, which is now estimated to contain 18.3 million tonnes to a depth of 300 metres. Drilling will begin by the end of November, subject to obtaining the necessary permitting.

As a follow-up to till sampling carried out this past summer over the AK-CJ property, a geophysical survey will be employed to define potential kimberlite targets.

In addition, further processing of five delineation drill holes from the 5034 kimberlite yielded 204 macrodiamonds and 1,171 micros from 290.1 kg of core material. Twenty-three of the macros are greater than 1 mm in size and two of the macros are greater than 2 mm.

Processing to date of 1,702.88 kg of core material has recovered 1,404 macros and 4,705 micros (or 8.24 macros per 10 kg). Of the macrodiamonds, 287 are greater than 1 mm and 30 are greater than 2 mm.

In the meantime, Mountain Province and Camphor Ventures have granted newly listed American Mineral Fields (VSE) the exclusive right to examine technical data relating to the AK-CJ properties, for a period of 90 days.

American Mineral’s holdings include two diamond exploration properties in Brazil.

Northwest Territories

* Reconnaissance till sampling over the 50%-owned property of Mongolia Gold Resources (VSE), 70 km northwest of Yellowknife, has recovered pyropes and chrome diopsides in 10 widely spaced samples, suggesting the potential for a nearby kimberlite source. The property spans 23,200 hectares.

Mongolia plans to carry out a ground geophysical survey. The company’s claim group adjoins the fully owned Royce property of GMD Resource (VSE), where a 3,000-ft. drill program will be carried out on four of nine targets identified.

Brazil

* Geological mapping at the alluvial Aragarcas diamond concession in central Brazil has identified a buried river channel averaging 1,500 metres in width with a thickness ranging from 1 to 6 metres.

Highgrade Ventures (VSE) can earn a 50% interest in Aragarcas and four other gold concessions in Brazil by spending US$4 million on exploration over two years.

The buried channel is traced along the Araguaia River for the entire length of the concessions, a distance of 46 km. A preliminary estimate of the gravels is calculated at 85 million cubic metres. Historic mining by small operators has averaged 0.15 carat per cubic metre.

Africa

* Diamond production at the River Ranch mine in Zimbabwe reached a new high in September.

Redaurum (TSE) reports that 20,351 carats were extracted, putting the company on target for a fourth-quarter total of 59,132 carats. Commissioning of the final phase III plant is nearing completion. At full operation, the plant is expected to process up to 2 million tonnes of rock per annum.

In South Africa, Redaurum’s Quaggas Kop alluvial diamond mine continues to increase production, with a third rotary pan plant due to be installed before the end of the year.

Meanwhile, construction is about to begin at Redaurum’s

250,000-tonne-per-year rotary pan plant at Kelsey Lake, Colo.

The company has negotiated a private placement to raise up to $8.4 million through a European agent. Funds will be used to expand Kelsey Lake and Quaggas Kop, as well as to acquire another mine.

* Bellsbank Consolidated Diamond Mines, a wholly-owned subsidiary of Toronto-based Rex Diamond Mining (CDN), has acquired an option from De Beers Consolidated Mines for the South Extension mine in South Africa.

The property, which is near Kimberley and adjacent to Rex’s Bellsbank mine, has a fissure strike length of 590 metres and is accessible using the existing shaft infrastructure at Bellsbank. Based on a preliminary engineering report, the South Extension fissure’s life is estimated to exceed 14 years (assuming production of 10,000 tonnes per month).

During the three months ended Sept. 30, Rex’s subsidiaries produced 12,908 carats of diamonds, generating revenue of US$2.96 million. This includes US$350,000 (rough value) for a 110-carat gem produced in September at Bellsbank.

Of the total production, 5,599 carats were produced at the Rex and Ardo mines (72% owned by Rex), while 7,309 were produced at Bellsbank (100% owned).