DIAMOND NEWS ROUNDUP — Storimin drilling for diamonds near Yellowknife, N.W.T.

Drilling is set to begin on diamond claims belonging to Storimin Exploration (ASE) in the Northwest Territories.

Initial plans call for testing certain promising anomalies for the occurrence of kimberlite. The results of this early program will determine how much more extensively Storimin will examine its properties.

In the summer of 1994, Storimin flew a combined magnetometer and electromagnetic survey, consisting of 30,000 line km, in an area comprising 6,000 sq. km northeast of Yellowknife. Guided by the airborne survey results, the company staked more than 15,000 hectares. Only a limited amount of geological and ground geophysical work has been done to date.

On the financial front, Storimin will hold a special meeting of shareholders, coincident with the company’s Sept. 13 annual general meeting, when shareholders will be asked to approve a partial distribution of assets. These assets are to include 4.9 million shares of Moss Lake Gold Mines, which Storimin proposes to distribute on the basis of one share of Moss Lake for every two shares of Storimin.

Storimin acquired these shares by virtue of its 22% ownership of a gold property 100 km west of Thunder Bay, Ont. Meanwhile, Moss Lake is applying for a listing on the Toronto Stock Exchange.

Elsewhere in the Northwest Territories

* Till sampling is in full swing at the Camsell Lake joint venture, 140 miles northeast of Yellowknife.

The work is following up the discovery, last autumn, of two distinct indicator mineral trains.

Winspear Resources (VSE), which holds a 30% interest in the project, says the trains appear to be derived from multiple kimberlite sources within the central and eastern regions of the 220,000-hectare area.

Upon completion of the summer program, drilling may be carried out to test several targets outlined by geophysics and till sampling.

During the spring drilling program, hole 95-2 intersected 541 ft. of a new kimberlite identified as CL-174. It lies close to 150 metres northwest of the CL-25 pipe, which yielded 9 macrodiamonds and 212 micros from 350.4 kg of material drilled in 1994.

Analysis of an initial 51.1 kg of sample material from CL-174 is reported to have recovered a total of 44 diamonds, with microprobe analyses of 400 pyrope garnets indicating a high proportion of subcalcic, chromium G10 garnets. As a result of these results, the remaining core from hole 95-2 is to be analyzed.

The remaining interest in Camsell Lake is divided among Aber Resources (TSE), with 40% interest, Amarado Resources (VSE), with 20%, and Consolidated Newgate Resources (VSE), with 10%.

* Monopros, the exploration arm of multinational DeBeers, has walked away from an agreement with the Slave Diamond Syndicate.

Indefinite drilling delays caused by the Deh Cho Indians in the Dessert Lake area are cited as the reason for the termination of the option agreement. Monopros could have earned a 60% interest by spending $7 million over three years.

The syndicate consists of Gerle Gold (VSE), which holds a 40% interest, and three other companies, each of which has 20%. They are Norcal Resources (VSE), Tenajon Resources (VSE) and Westley Technologies (TSE).

The disputed corridor of land is claimed by both the Deh Cho and Dogrib Indians, and, although the government and Dogrib approved the drill permitting (which, under the law, was all that was required), Monopros and the Syndicate failed to reach an agreement with the Deh Cho.

Negotiations with the Deh Cho people will continue, but targets outside the area will receive priority. Meanwhile, the syndicate has been approached by another exploration group with regard to joint-venturing the Slave Diamond holdings.

* Partners ITL Capital (VSE) and Riley Resources (VSE) have granted Ming Financial an option to earn a half interest in the C.J. claim group, which consists of 40,600 hectares in the Lac de Gras region.

Terms call for expenditures of $4 million over the next three years, delivery of a feasibility study, and payment of 250,000 common shares.

A minimum 5-hole drill program is planned.

Saskatchewan

* While ground geophysical work is being applied to the Candle Lake joint venture near Fort a la Corne, delineation drilling is indicating that two kimberlites, 29C and 30C, are, in fact, a single pipe.

Ten holes have been drilled to date by Kennecott Canada, which is earning a 60% interest from Vancouver-listed partners War Eagle Mining and Great Western Gold by spending $8 million on exploration and development over the next five years.

Seven holes drilled into the 29C pipe suggest the kimberlite is shaped like a ship’s keel, as opposed to the more traditional carrot-like configuration. Two holes, spaced 240 metres apart, were drilled into the 30C pipe, while one hole was drilled in between the two pipes, intersecting kimberlite.

As drilling continues, samples are being processed by caustic fusion, with results pending.

* Better Resources (VSE) plans to drill-test magnetic anomalies identified on its properties in the province’s southwest.

It is believed the anomalies may be the source of kimberlite indicator minerals recovered from previous till sampling.

Ontario

* Toronto-listed Citadel Gold Mines has begun searching for the source of alluvial diamonds found in the vicinity of Wawa.

A reconnaissance program will include stream sampling for kimberlite indicator minerals and, if warranted, diamond drilling in the perceived source areas (which include a previously known circular magnetic anomaly).

In 1993, two macrodiamonds were found at Dead Creek, which is an entrenched meander near the mouth of the Michipicoten River. A heavy mineral survey by the Ontario Geological Survey (OGS) showed kimberlite indicator minerals (G10 garnets and high-grade chromites) in the area, with the highest concentration found in streams within, and on, the down-drainage side of Citadel’s 2,400-hectare gold property.

Citadel’s property yielded 155,500 grams (5,000 oz.) gold (taken as a bulk sample between 1989 and 1990). A mine and mill exist on site.

Following the OGS report, Citadel staked an additional 20 claims at the updrainage end of the streams hosting the kimberlite indicator minerals. Much of the current program is focused on those claims.

United States

* The combined estimated tonnage from the two kimberlite pipes at Redaurum’s (TSE) Kelsey Lake property in Colorado has been increased by 60% to 16.9 million tonnes.

Development and commissioning of Redaurum’s 250,000-tonne-per-annum recovery plant are ongoing, and the company plans to begin production in October.

* Golconda Resources (ASE) says preliminary results from drilling carried out late last year on its Thorn Creek project in Idaho will likely be made available shortly.

Eighteen composite samples were taken from seven holes which intersected lamproitic tuff. The samples are initially being analyzed for indicator minerals and checked for diamonds.

In May, Golconda followed up previous drilling in an area where G-10 garnets were recovered, and drilled a further six holes. The company is awaiting results from last year’s program before processing any samples from the recent drilling.

Brazil

* Bulk sampling will begin within the next month on several kimberlite pipes in the Coromandel project area in Minas Gerais state.

South Atlantic Diamonds (VSE) plans to take samples of 1,800 to 2,700 tonnes from the Quartel 1, Galeria and Vargem 2 pipes. A portable plant will be set up on site to treat the samples.

Meanwhile, follow-up ground work on more than 400 targets within the Coromandel, Corrego D’Anta and Cristais projects is continuing. The recent discovery of the Capivara and Regis pipes brings to 35 the number of kimberlites identified within the three project areas. More than 3,000 kg of sample material from 19 pipes are being prepared for mineral indicator analysis in an attempt to choose for bulk sampling.

Africa

* BHP Minerals can earn a 51% interest in Amarado Resources’ (VSE) Gope diamond property in Botswana for US$250,000. Amarado will be the initial operator.

BHP must also s
pend US$3 million on the property within three years, funding all exploration work, as well as all work required to prepare a feasibility study for the first diamond mine.

The property lies adjacent to the Orapa and Gope kimberlite clusters. Previous exploration work produced a scatter of kimberlite indicator minerals over a wide area.

* Drilling on Redaurum’s 4,000-hectare Rooiberg lease in South Africa has identified the profile of the buried channel of the Sout River, which is seen as an extension of the Quaggas Kop mine resource, immediately upstream. In drilling 25 holes, Redaurum has identified a well-developed deposit of Paleozoic river gravels. The buried channel is 7 km long and 500 metres wide, with a minimum thickness of 1.5 metres of potentially diamond-bearing gravel.

Additional drilling is under way to define the resource at the Sout River channel area. The company intends to bulk-sample the newly discovered resource for diamond content and grade.