DIAMOND NEWS ROUNDUP — Spider, KWG discover diamonds in James Bay Lowlands

The Kyle 3 kimberlite in the James Bay Lowlands of northern Ontario has yielded 104 diamonds.

Four holes drilled by partners Spider Resources (ASE) and KWG Resources (TSE) intersected a diamondiferous zone with a true width of 4 metres and a drilled length of 600 metres. More than 90% of the diamonds were found in this zone.

In total, the 293.4 kg of kimberlite sampled yielded 20 macrodiamonds and 84 micros, although much of that amount came from a 29.1-kg portion of the sample.

To date, KWG and Spider have identified five diamondiferous kimberlites in the project area. The total number of known kimberlites in the area is 24.

Numerous diatreme targets have been observed from reviewing new aeromagnetic data, and 50 claims have been staked covering these new areas in the Spider No. 3 area.

Elsewhere in Ontario

A combined $1-million effort by Vancouver-listed partners Consolidated Pine Channel Gold and JNR Resources has uncovered two previously unknown kimberlite pipes in the Temiskaming district of northern Ontario.

The pipes, C31 and Bucke F, are smaller in diameter than the partners’ nearby OPAP pipe, but Bucke F at least shows potential, in that it contains more coarse indicator minerals than the other two.

Meanwhile, the partners are continuing work on the OPAP pipe, where they say they have defined a “possibly economic, moderate-grade diamond find”.

Alberta

Vancouver-listed juniors Prime Equities International, Golden Gate Resources and Double Down Resources will not proceed with their respective interests in diamond claims in the Peace River district of northern Alberta. Instead, they have surrendered them to Ridgeway Petroleum (VSE).

Prime held a 90% interest in 4.1 million acres; Golden Gate held a 75% interest in 56 mineral permits covering 1.2 million acres; and Double Down held a 90% interest in 111 permits covering 2.6 million acres in two separate areas.

Africa

* Rex Diamonds (Barbados), a wholly-owned subsidiary of Rex Diamond Mining (CDN), has completed a US$2.5-million financing with Repadre Capital (TSE).

Repadre purchased a 1.6% sliding-scale royalty interest on gross sales from Rex Diamond’s South African mines, together with 500,000 Rex shares at US$1.75 per share. The president of Repadre, Joseph Conway, has joined the Rex board.

Rex Diamond is using the proceeds of the deal to expand its operations and accelerate the rate of production at its three principal diamond mines: Ardo, Rex and Bellsbank.

* Vancouver-listed Namco has completed first-pass bulk sampling in the Koichab area of its large Luderitz Bay grant in Namibia.

The program produced exceptional results, with a total of 60% of the bulk samples taken containing diamonds (95% gem quality). Some 278 stones with an average weight of 0.288 carat were recovered; the largest weighed 1.3 carats.

Independent consulting firm Marine and Coastal noted, “to our knowledge, using a remote sampling tool, these results contain the highest stone count recovered from a single sample on the west coast of southern Africa.” * Preliminary results from stream sediment sampling on the 147-sq.-km Volta diamond concession in Ghana, West Africa, suggest a highly prospective corridor of ground measuring 10 km long by 3 km wide.

Carlin Resources (VSE), with a 90% interest, is sampling the concession’s 20 major drainages. The area of interest is found to contain higher-grade alluvial workings and a greater number of diamonds in excess of 0.5 carat. In particular, two samples taken from streams originating in the vicinity of an elliptical, airborne, magnetic anomaly returned concentrations of greater than 15 diamonds per cubic metre.

The first occurrence of bedrock diamonds was discovered within this corridor.

The sampling is expected to be finished by February 1996, and will be followed by trenching.

Elsewhere Overseas

* Toronto-listed Guyanor Resources has entered into a joint venture with BHP Minerals for the exploration and potential development of the Dachine diamond property in French Guiana.

BHP can earn a 51% interest in the project by spending US$3.5 million by May 1998, after which time it would carry additional costs until completion of a feasibility study for the first diamond mine.

Dachine contains the Inini diamond occurrence, discovered in 1978. Diamonds were found in outcrop, with abundant microdiamonds in some samples within three areas of extensive, metamorphic bedrock. In addition, other targets have been identified from geophysical and indicator mineral data.

* In northwestern Ukraine, a 15-hole diamond drill program has begun testing targets delineated by geophysics and indicator mineral sampling.

The joint venture consists of partners SouthernEra Resources (TSE) with a 75% interest, Prior Resources (ASE) with 15%, and Consolidated Newgate Resources (VSE) with 10%.

Prior can earn an additional 30% interest from SouthernEra by spending US$150,000 on exploration.

Prior has appointed Stewart Blusson as technical adviser, overseeing exploration in the Ukraine.

An agreement with the Ukraine government, which provides the joint venture partners with the exclusive right to explore for diamonds in the country, calls for expenditures of US$500,000 by the end of 1996.

Archon Minerals (VSE) is negotiating with the joint-venture partners to acquire a right to participate in the exploration projects in the Ukraine.