DIAMOND NEWS ROUNDUP — NWT Diamonds group seeks permits

With diamond evaluations completed on four of five pipes planned for production (namely, the Panda, Misery, Koala and Fox) and on one new pipe (the Pigeon), the N.W.T. Diamonds joint venture is preparing to seek permits.

If all goes well, BHP Diamonds (a subsidiary of BHP Minerals) and Dia Met Minerals (TSE) anticipate construction at the camp will begin in the summer of 1996, with initial production slated for late 1997.

The evaluation of 3,217 carats recovered from the Misery pipe averaged US$24 per carat. Dia Met attributes the lower-than-expected carat value to the absence of any large diamonds comparable in quality to earlier samples and to the current market for lower-quality diamonds.

To date, a total of 4,313 carats have been recovered from 1,030 tonnes of sample material from the Misery pipe, for an average grade of 4.19 carats per tonne. The average value of US$26 per carat translates into an overall value of US$109 per tonne for the pipe. The previous value of US$145 per tonne was based on 438 carats recovered from 132 tonnes of drill material at an average value of US$44 per carat.

The evaluation of 317 carats from the Panda pipe averaged US$113 per carat. Combined with previous bulk-sampling results, a total of 3,402 tonnes of material have yielded 3,244 carats for a grade of 0.95 carat. The evaluation of the diamonds averaged US$130 per carat for an overall value of US$124 per tonne, a minor change from the previously reported value of US$123.

An average value of US$142 per carat was given to 501 carats recovered in the 1995 program on the Koala pipe. In total, 1,465 carats have been recovered from 1,550 tonnes of sample material for an average grade of 0.95 carat. The diamonds are valued at an average of US$122 per carat, for an overall value of US$116 per tonne, which is US$33 higher than the previous value of US$83 per tonne.

An evaluation of a further 65 carats from the Fox pipe met with an average value of US$101 per carat. The overall value of US$34 per tonne remains unchanged. In total, 8,223 tonnes of kimberlite have yielded 2,199 carats for a sample grade of 0.27 carat per tonne at an average value of US$125 per carat.

Of the 714 tonnes of drill core recovered from the Leslie pipe (the fifth pipe planned for production), the processing of 680 tonnes yielded 223 carats for a grade of 0.33 carat. No value for the diamonds is reported, and metallurgical tests continue to be carried out on an additional 20 tonnes.

Previous sampling on the Leslie pipe determined a grade of 0.32 carat per tonne, with an average value of US$89 per carat for an overall value of US$28 per tonne.

One of five new pipes tested during the winter was the Pigeon. An average value of US$51 per carat was determined from 60 carats recovered from 154 tonnes. A preliminary grade of 0.39 carat per tonne gives an overall value of US$20 per tonne. The four other new pipes tested, which include the Cub, Grizzly, Arnie and Mark, have been deemed insufficiently economic to warrant additional work.

Exploration work this past summer identified an additional 13 pipes, bringing the total to 57, of which 42 are known to be diamondiferous. The joint-venture partners plan to carry out additional tests on some of the new pipes.

The N.W.T. Diamonds joint venture consists chiefly of BHP, with a 51% share, and Dia Met, with 29%. The remaining 20% is held by private individuals.