DIAMOND NEWS ROUNDUP — Parcel of diamonds from Diavik sent for valuation

This month, Kennecott Canada is expected to decide if it will proceed with an underground bulk-sampling program on the A-154 South kimberlite in the Lac de Gras region of the Northwest Territories. The project is held 60% by the major, with Aber Resources (TSE) holding the remaining 40% interest.

A mini-bulk sampling program was recently completed, and a parcel of diamonds from the pipe has been sent for valuation. Details of the value-per-carat are expected to be made available shortly.

During the sampling program, eight holes were drilled to test the A-154 South pipe, providing a total of 56.5 tonnes of kimberlite. A total of 255.6 carats was recovered, for a grade of 4.5 carats per tonne. Two holes tested the North pipe, providing 12.9 tonnes which yielded 28.6 carats, for a grade of 2.2 carats per tonne.

Aber also reported that drilling to test the A21 kimberlite returned 362.1 kg of core, yielding 90 macrodiamonds and 272 micros. Results are still awaited from other holes drilled to test this target.

Elsewhere in the N.W.T.

* An exploration program budgeted at $650,000 will be carried out by Gerle Gold (VSE), under the supervision of Monopros, on properties in the Doyle Lake area of the Northwest Territories.

Monopros, an exploration arm of De Beers, can earn a 60% interest by incurring expenditures of $4.65 million over the next four years. As part of the arrangement, Monopros undertook a private placement of Gerle, purchasing 200,000 units at a price of 75 cents per unit. Each unit consists of one common share and one warrant. A single warrant entitles the purchase of one additional share at 80 cents in the first year or 86 cents during the second year.

A work program conducted last year on the Doyle Lake claims included indicator mineral sampling, ground magnetics and the drilling of two targets. Additional sampling is planned for this field season as well as further drill testing.

* The drilling of eight magnetic targets on the Misty Lake property in the Camsell Lake area failed to intersect any kimberlite material for Major General Resources (VSE) and the International Diamond Syndicate. The joint venture partners are earning a combined 40% interest from SouthernEra Resources (TSE) by spending $2.5 million.

In an effort to further define other magnetic anomalies, a till sampling program is planned for the 218,000-acre property.

The International Diamond Syndicate is owned 40% by Calco Resources (VSE), 40% by Teryl Resources (VSE) and 20% by Agate Bay Resources (VSE). Upon earn-in, the Diamond Syndicate will hold a 16% interest; Major General, 24%; and SouthernEra, 60%.

* Drilling is set to commence on Chapleau Resources’ (VSE) Back River property. The company reports that a total of 26 targets is currently outlined. The company holds a 35% interest and can earn up to a 75% interest by spending $1.25 million by the end of 1996.

Chapleau recently entered into an option to earn a 75% interest in 86 claim blocks, approximately 30 km south of Mountain Province’s AK property. Terms of the agreement call for expenditures of $380,000 in the first year and a further $3.3 million over the following three years as well as the issuing of 900,000 shares.

An extensive ground geophysics program will follow-up a previous airborne magnetic survey.

* Proceeds from a private placement of 1 million units at a price of $1.44 per unit will be used by Camphor Ventures (VSE) for further exploration and development on its various diamond properties, specifically its 10% interest in the AK-CJ property.

Each unit is made up of one common share and one warrant entitling the purchase of one additional share exercisable at $1.44 in the first year and at $1.66 in the second.

The remaining interest in the AK property is held 50% by Mountain Province Mining (VSE) and 40% by Glenmore Highlands (ASE).

* Till sampling on the fully owned Royce property of GMD Resource (VSE) returned kimberlite indicator minerals in 38 of 41 samples collected.

Based on these results, GMD has acquired additional land to now hold approximately 600,000 acres 100 km northwest of Yellowknife. An airborne geophysical survey was recently completed over the property and follow-up till sampling is underway.

In a related move, the PanD 2 Syndicate acquired 65,000 acres of land adjacent to GMD’s property. The claims are subject to a first right of refusal by GMD.

Mongolia Gold Resources (VSE) has a 50% controlling interest in the Syndicate and David Webb, Mongolia Gold’s president, indicates a limited sampling program is planned for the property.

* Exploration expenditures of $33.4 million over the last two years have resulted in the discovery of five diamondiferous kimberlite pipes for Lytton Minerals (TSE) and its affiliates.

Two of the pipes are situated on Lytton’s fully owned 1.1 million-acre claim group north of Lac de Gras. Two other land-based pipes were discovered early this year on the 9-million-acre land package held jointly with New Indigo Resources (ASE).

The fifth pipe was discovered on the AK property held by Mountain Province, Camphor Ventures and Glenmore Highlands. Lytton owns a 47% share of Glenmore.

At the end of 1994, Lytton held varying interests and rights to a land package totalling more than 11.5 million acres in the Northwest Territories. Overseas

* Reunion Mining, 30.7%-owned affiliate of TSE-listed Caledonia Mining, has begun drilling the first of 60 aeromagnetic targets at Mabuki, Tanzania, in the Mabuki kimberlite cluster.

Two targets can been drill-tested each week, and the program will continue through 1995, weather permitting.

Reunion’s search for diamonds in the Mabuki and other kimberlite locations in Africa is part of a joint venture with Argosy Mining (VSE).

Four of seven previously identified pipes, situated in the Mabuki cluster but not held by Reunion-Argosy, are being mined for diamonds by artisanal miners.

In June, Reunion will begin field work on 63 first- and second-order aeromagnetic anomalies near the diamondiferous Lunguya kimberlite cluster, also in Tanzania.

A new pipe, NK-1, situated 50 km south of the Quest cluster, appears to be part of a new cluster. Occurrences of kimberlite indicator minerals (pyropes and kimberlitic ilmenites) and several magnetic anomalies northeast of the Quest cluster indicate additional pipes are also likely in that area. Reinterpretation of aeromagnetic data from the early 1980s has identified 77 high-priority targets, most of which are on the Mlibizi property.

Testing of an 800-kg sample of eluvial material recovered from seven holes drilled into the upper portion of the QK-3 kimberlite pipe in the Quest region of Zimbabwe did not yield diamonds.

* The search for sea-floor diamonds is on track for Namco (VSE). For the next six months, the company will be combing its extensive sea-diamond concession off the South African and Namibian coasts. The $6-million program will involve the use of a specialized sampling tool, the Namrod, developed by Boskalis (the world’s largest commercial sea-dredging group).

* Toronto-listed Redaurum has discovered a new kimberlite pipe close to its DK3 pipe in Botswana. Redaurum’s consulting geologist, Leon Daniels, says drilling of magnetic and gravity anomalies adjacent to the DK3 has confirmed the presence of the pipe, which has chemistry and indicator minerals similar to those found in the Orapa kimberlite field.

The company is planning a bulk sampling program of both DK3 and the new discovery using a mobile rotary pan plant.

On the financial front, Redaurum has entered into a letter of intent to issue a convertible debenture for $6 million with a European financial institution, subject to regulatory approval.

The debenture is convertible at the rate of one common share for every $1.85 converted, bears interest at 5% per annum and is due in one year.

The company intends to use the funds, along with its future cash surplus, to complete the acquisition and development of the Kelsey Lake diamond project in Colorado, and to upgrade production from the Quaggas Kop alluvial diamond mine in South Africa.