DIAMOND PAGE — Redaurum acquires Namibian prospect

Canadian diamond producer Redaurum (TSE) is set to acquire an alluvial diamond prospect on the Konkiep River in Namibia.

The property is 25 km north of the prolific diamond region around the lower section of the Orange River and close to the Octha diamond mine. The area is renowned for its production of large, high-quality gem diamonds. A ground-penetrating radar survey is under way, which will be followed by reconnaissance drilling. These initial surveys will be followed by close pattern drilling and bulk sampling.

The most prospective area within Redaurum’s property is a series of six large meanders (ox-bows) along the Konkiep River bed; these stretch for 60 km over the company’s holdings.

Elsewhere in southern Africa, Redaurum is evaluating another alluvial diamond mine on which it holds a purchase option. This mine, which is also in a region recognized for its gem-quality diamond production, has generated more than $20 million in revenue. Reserves are expected to last three years, and another large potential resource is being explored.

Redaurum also owns half of the River Ranch diamond mine in Zimbabwe, which is slated to produce about 150,000 carats in 1994.

Elsewhere Overseas

* Archangel Diamond (VSE), formerly Canmet Resources, has completed a private placement of 1.7 million units at $2.85 each, to raise nearly $4.92 million. Each unit consists of one share and one warrant. Two warrants entitle the holder to buy one additional share at $3.25 until Sept. 13, 1995. The company holds joint-venture positions in two licences — the Verkhotina and Windy Ridge — in the Archangel Diamond Field of northwestern Russia. The Verkhotina, which is 40% owned by Archangel, contains seven known diamondiferous pipes and a further 100 aeromagnetic targets — all within a 400-sq.-km area. The company is evaluating this property in a joint venture with Arkhangelskgeologia, a state entity.

Windy Ridge is a 50-50 joint venture with the St. Petersburg-based Research Institute Horizon. Previous work by state organizations resulted in the recovery of large numbers of diamond-indicator minerals, and the recovery of 452 diamonds from 118 kg of drill core. The project is undergoing geophysical and drilling programs.

* Canadian Overseas Exploration (VSE) has entered an agreement with Credit Lyonnais Laing, a London, England-based securities dealer, to place 25 million common shares at 40 each. Vancouver-based investment firm Canaccord Capital has been appointed broker to the issue.

The $10-million placement will be used to fund marine diamond activities in southern Africa.

Northwest Territories

* De Beers Consolidated Mines is busy drilling at least five targets on the Yamba Lake project.

Core samples from the project, held jointly by Mill City Gold Mining (VSE) and Tanqueray Resources (ASE), are to be analyzed at De Beers’ facilities in Johannesburg for a micro-macro count. De Beers can earn a 60% interest in the project by funding exploration and development.

* Trade Winds Resources (VSE) is set to begin drilling on the Drybones Bay property. The company is earning a 60% interest by paying the vendor $400,000 plus 400,000 shares, and spending $2 million on exploration over the next three years. Project operator SouthernEra Resources (TSE) plans to drill at least two holes from the shore of Drybones Bay, the objective being to delineate the kimberlite pipe and recover samples.