DIAMOND NEWS ROUNDUP — Namco bulk-testing uncovers diamonds off Namibian coast

Diamonds have been found in each of four sea-floor features in the Hottentots Bay grant sampled by Namco (VSE).

Sampling took place in the southeastern quadrant of the Saddle Hill prospect, 8 km off the coast of Namibia.

The overall success ratio of first-pass samples (i.e. those that contain one or more diamonds) is 23%. Stone size is above that predicted for the concession and close to the average for southwestern Africa: 0.27 carats.

The best results were obtained from feature 13, which recorded a success rate of 34% over a 5.7-sq.-km area and an average stone size of 0.3 carat. Feature 8 recorded a success rate of 27.6% over 6 sq. km, with diamonds ranging in size from 0.14 to 0.53 carat.

The rate of sampling has increased, following the fitting of a unit that compensates for sea swells.

Elsewhere in Africa

* Toronto-listed United Reef has sold a third parcel of diamonds from its Bamingui River property in the Central African Republic.

The parcel of 1,8198.06 carats was sold for US$305,000, which equates to an average value of US$168 per carat.

The sale brings to 3,267.35 carats the total amount of Bamingui diamonds sold by United Reef in its 1995 fiscal year. The sales generated US$590,834.

The company is assessing the feasibility of expanding its recovery plant.

* Vancouver-listed AfriOre (formerly Amarado Resources) has released preliminary results of mini-bulk testing carried out at its Kareevlei Wes kimberlite in South Africa.

On anomaly 1, a 52.34-tonne sample contained 17

diamonds with a total weight of 4.45 carats, or 8.44 carats per tonne. A 79.64-tonne sample, taken from anomaly 2, contained 21 diamonds with a total weight of 8.69 carats, or 10.91 carats per tonne.

More than 75% of the recovered stones are gem-quality and of good color, and, significantly, several small producers in the area are mining diamonds of similar or lower grade and quality.

Results from the largest pipe, the 5.8-hectare anomaly 3, should be available by the end of the month.

AfriOre has signed an option agreement to acquire the mineral rights to a farm adjacent to the Kareevlei Wes property, where AfriOre has located a magnetic anomaly that appears to be part of the Kareevlei kimberlite cluster.

* South Africa’s Avontuur mine is now 80%-owned by Canadian-based Redaurum (TSE).

The company has also assumed management of the producing mine, which is on a 320-hectare property on the west coast of South Africa, near Hondeklip Bay. The purchase price of $2.1 million includes the acquisition of the mining permit and surface rights to Avontuur, as well as a plant and equipment. Redaurum will boost production to 2,000 carats per month over the next 12 months.

Avontuur contains a known diamond resource of 180,000 carats, and 90% of the diamonds produced to date are of gem quality. Drilling and pitting are under way.

California

Montreal-listed Diadem Resources has drilled the first hole on its property in Leek Springs, Calif.

Diatreme breccias similar to host rocks for diamonds were intersected below the unconsolidated material in the hole. Visual inspection of the breccias revealed the presence of diamond indicator minerals similar to those found in the unconsolidated material, and samples have been collected for analysis.

Two core rigs are on site, and a third is expected shortly.

Down Under

Newly listed on the Montreal Exchange, Caldera Resources is busy exploring for diamonds on a 11,440-sq.-km land package in the Abminga area of South Australia.

MIM Holdings is performing geochemical surveys on two of Caldera’s exploration licences, which comprise a total area of 848 sq. km.

Airborne work indicates that magnetic anomalies are consistent with pipe-like intrusions on the Caldera holdings. Subsequent field checks confirmed kimberlite and related rock types, and indicated that the intrusions are not deeply eroded.