DIAMOND UPDATE — Pure Gold faces lawsuit from Loumic

Legal action has been brought against Pure Gold Resources (TSE) by Loumic Resources (VSE), which claims to have interests ranging from 6.5%-16% in four of Pure Gold’s properties in the Northwest Territories, including the promising Humpy Lake property.

Pure Gold acknowledges that Loumic had an interest in three of the properties (RR, Clinton No. 2 and Tarantula Lake), but says Loumic forfeited those interests when it failed to issue 100,000 shares in payment. Pure Gold “categorically denies” that Loumic ever held an interest in Humpy Lake. Pure Gold President Donald Sheldon says exploration, under the direction of partner Ashton Mining, will continue on Humpy Lake despite the lawsuit. Loumic is claiming a 6.6% interest in Humpy, he says.

Elsewhere in the Northwest Territories:

n SouthernEra Resources (TSE) has agreed to option 300 claims held by Fortune Minerals (CDN) in the Lac La Martre area. By making cash payments of $150,000 and spending $1 million over three years, SouthernEra may earn a 75% interest in the claims. The property adjoins Aur Resources’ McConnell diamond project. n This summer, Kennecott Canada plans to begin ground geophysics, mapping and soil sampling on a 9,297-acre portion of a 95,000-acre claim block 70%-owned by Thermal Exploration (ASE).

Alberta

Rich Minerals (ASE) says ground magnetics designed to locate drill targets will begin immediately on its permits in Alberta. Meanwhile, the junior is conducting joint venture negotiations with a senior company. Ontario and Quebec

— Mines Abcourt (ME) has staked eight blocks of claims in the Kirkland Lake area. The claims cover 16 circular magnetic anomalies.

— Findore Minerals (CDN) has acquired four properties in the Kirkland Lake area in exchange for a total of $20,000 and 400,000 common shares. — Kimberlite core samples from a property held by Exploration Orbite (ME) in Le Tac Twp, Que., have yielded diamond indicator minerals including pink to purple pyrope garnets, ilmenites, chromites and chrome diopsides. Orbite will follow up the encouraging results with ground exploration on nearby magnetic anomalies.

— Spider Resources, which holds a 30% interest in the Spider #1 and Spider #2 diamond exploration projects in northern Ontario, was recently listed on the Alberta Stock Exchange. Its joint venture partner is Montreal-based KWG Resources.

The partners say drilling will begin on the James Bay Lowlands (Spider #1) project as soon as weather conditions permit.