DIAMOND SPECIAL — Prairie diamond hunters intensify

As the persistent pace of diamond exploration in the Northwest Territories testifies, the race for placing the first Canadian diamond mine into production is far from over. Still greater evidence is the fact that several juniors are intensively searching for diamondiferous kimberlites farther south.

These juniors believe that a significant find on the Prairies, for example, would immediately cause the major players to shift their interest from the north to the south, where much of the supporting infrastructure is already in place.

“We’re getting a better bang for our buck,” says Anthony Rich, president of New Claymore Resources (VSE). He added, however, that companies need to show greater interest in this new phase of Canadian diamond exploration. “Otherwise, Alberta diamonds may remain undiscovered.”

Like Rich, Shaun Spelliscy is attracted to the economics of developing a diamond mine farther south. Indicator Exploration, the company over which he presides, is exploring in southern Manitoba.

“It’s still anybody’s game at this stage,” Spelliscy says. “Minnesota is wide open and the southeastern tip of Ontario has yet to be touched.” However, the most promising results to date have come from the heart of the Prairie provinces, Saskatchewan. The most recent discovery is by the Candle Lake joint venture of War Eagle Mining (VSE) and Great Western Gold (VSE), which discovered five diamondiferous kimberlite pipes existing in a cluster near Candle Lake, northeast of Prince Albert. Initial sampling yielded 40 diamonds recovered from 231.7 kg of quartered drill core sample material. Thirty-eight diamonds (or 95%) are clear-white gem quality, five diamonds are macro size and 13 are perfectly preserved octahedral diamonds. As a result of the discoveries, the Candle Lake joint venture has expanded its holdings into properties held by Mountain Province Mining (VSE) and Camphor Ventures (VSE) and is seeking investors in England and Europe. It will also be sharing technical information with Consolidated Pine Channel Gold (VSE), another diamond hunter active in the Candle Lake area. Consolidated Pine and its joint-venture partners — Golden Peaks Resources (VSE), June Resources (VSE), Mountain Province Mining (VSE), Golden Marlin Resources (VSE) and Canadian Entech Research (ASE) — are also focusing their attention on Saskatchewan, specifically the Montreal Lake area, where geophysical formations show similarities to kimberlites discovered at Candle Lake and also at Fort a la Corne.

In the latter’s case, the joint venture of Monopros, Uranerz Exploration and Mining and Cameco (TSE) continues to conduct drill sampling from its well-documented diamondiferous kimberlite pipes. Macrodiamonds of up to 1 carat in size have been recovered from the 70 known kimberlite targets, and 25 are drill-proven. The discoveries at Fort a la Corne are what has led Saskatchewan’s diamond rush.

A resident geologist at La Ronge, A.J. Gracie says the province has witnessed an “enormous” extension of staking but still not much involvement by majors, beyond Monopros, Uranerz and Cameco. The significance of the War Eagle find is that it represents a regional extension of known kimberlite finds held at Fort a la Corne by those three companies, and separately by Rhonda Mining (ASE).

In Manitoba, there was much hoopla over the 1.1-million-hectare southeastern claim taken by Rhonda last March. It turns out, however, that Indicator Exploration has also been active in the region since 1989. These two companies are working to establish a kimberlite find based on what they have seen across the border in Minnesota.

According to Indicator’s Spelliscy, De Beers is staking just across the border, where it has discovered two or three kimberlites. He is encouraged that one kimberlite is close to the southerly edge of his Canadian properties. “I would say that the most prospective area right now, based on our reconnaissance work, is southeastern Manitoba,” says Spelliscy, who is also the owner of Shannon Oil of Saskatchewan.

Spelliscy played a key role in uncovering the potential of Saskatchewan’s Fort a la Corne geology and later sold his property rights at that camp to Rhonda.

He says diamond hunting in Manitoba is inexpensive and offers excellent geophysics. Recent surveys conducted by the Geological Survey of Canada further substantiate the value of the southeastern corner.

“We could be operating anywhere,” he says, “but we have chosen southern Manitoba.”

Rhonda has also chosen southern Manitoba, which it believes has characteristics, or “fingerprints,” that are similar to those that led to diamondiferous kimberlite discoveries in the Territories and central Saskatchewan.

As for the Flin Flon-Snow Lake area in Manitoba, Bruno Esposito of the province’s Department of Energy and Mines reports that ground geophysics and surveys by both SouthernEra Resources (TSE) and Enterprise Exploration are continuing. Snow Lake is the only known kimberlite discovery in Manitoba. Among the most active diamond explorers in Alberta these days is Calgary’s Montello Resources (ASE), which has acquired a 50% option to acquire properties owned by New Claymore and a 60% option to acquire properties owned by Troymin Resources (ASE) in the vicinity of Jasper National Park. Montello is spending about $500,000 on an extensive aerial magnetic survey of the more than 400,000 hectares, and its efforts are already paying off. In July, the junior announced the discovery of a macrodiamond from a stream sediment sample.

“Montello has reported to us several anomalous magnetic features that have been mapped so far,” says Troymin President Jack Macleary. These initial results have led the partners to believe there is potential for a diamondiferous source of this massive property.

The joint venture of Monopros, Dia Met Minerals (TSE) and Cameco is staking properties adjacent to those of Montello. Cameco is analyzing field samples taken last year and is returning for more this fall. When asked if a kimberlite had been discovered on the Alberta properties, a company spokesman refused to comment, saying only that the project is at the grassroots stage. Several juniors eagerly awaited the recent Dia Met annual meeting, having placed much stock in the positive comments made at last year’s meeting by Chairman Charles Fipke, who touted Alberta’s potential. It was Fipke who discovered the Dia Met-BHP diamondiferous kimberlites at Lac De Gras, N.W.T. Troymin’s Macleary says Alberta desperately needs someone to find a kimberlite pipe.

As for New Claymore’s Anthony Rich, although he is optioning his property near Jasper National Park, he is still active on properties in southern Alberta.

“We do have seven or eight targets outlined on the Sweetgrass Arch,” he says, adding that he would like to option the property to a major so it can conduct a detailed study of the area.

“One (target) is intrusive — a dead ringer,” he says. “We have picked up two G10s and a host of G9s, G5s and G4s. We are also picking up chrome dioxides and they are definitely pointing us to the Sweetgrass Arch.” The new year promises to bring interesting reading in Alberta, as many who took part in the province’s staking rush two years ago must file assessment reports by then. They must also prove they have spent adequately on exploration, or lose their claim.

— The author is a freelance writer from St. Albert, Alta.