DIAMOND PAGE — Samples from Diavik pipe confirm grade

The results of an underground bulk sample taken from the A-154 South pipe at the Diavik diamond project continue to confirm an earlier mini-bulk drill sample.

The project, situated in the Northwest Territories, is a joint venture held 60% by Kennecott Canada and 40% by Aber Resources (TSE).

A total of 1,369.2 carats have been recovered from 305.6 tonnes of bulk sample, the average grade of which is 4.5 carats per tonne.

The largest stone recovered weighs 14.75 carats, and the largest gem-quality diamond weighs 4.05 carats.

Separate from the 305.6 tonnes is the initial 46-tonne sample, which was taken from the first two rounds of advancement into the kimberlite.

The sample was heavily diluted with wall rock and grout cement, and yielded a previously reported 85 carats for a grade of 1.8 carats per tonne.

In total, the 352 tonnes processed to date represent about 25.6 metres of advance into the kimberlite.

In 1995, a large-diameter surface drill program recovered 56.5 tonnes, which returned a grade of 4.5 carats for the A-154 South pipe. The diamonds were valued at US$58.17 per carat, giving an overall value of US$262 per tonne.

Drilling has delineated a resource estimated at 8.4 million tonnes to a depth of 250 metres.

The objective of the underground bulk-sampling program is to recover a minimum 10,000 carats for valuation purposes. To date, 2,740 tonnes of kimberlite have been mined, of which 1,400 tonnes have been shipped to Kennecott’s processing plant in Yellowknife, N.W.T.

The joint-venture partners have responded to the recent closure of the winter road to Yellowknife by processing the remaining kimberlite at the BHP-Dia Met Koala plant. To date, 992 tonnes have been shipped to Koala.

Aber, in the meantime, has completed the sale, by private placement, of 1 million units priced at $17.50 per unit.

Each unit consists of one common share and one Series B share purchase warrant, for which every two warrants entitles the purchase of one additional share at $19 for a period of one year.