Drill rigs to test Kirkland pipes

While the logistics of diamond exploration in the Northwest Territories become more challenging with each passing day, some companies are mobilizing drill rigs to the relatively balmy climes of northeastern Ontario.

This month, Sudbury Contact Mines (TSE) will resume drilling on its 40,000 acres of ground near Kirkland Lake, Ont., says project geologist Peter Hubacheck.

One rig will be stationed on the Diamond Lake property, where the junior found 14 microdiamonds within a kimberlite pipe, while a second rig will be assigned to reconnaissance work on nine other properties covering 20-30 geophysical targets.

Some of those targets lie on Panthco Resources’ (CDN) Mary Ann property, which straddles a north-south trending fault zone on the border between Gauthier and McVittie twps.

Sudbury Contact, an affiliate of Agnico-Eagle Mines (TSE), will release sampling results from a second pipe found south of the Diamond Lake property with third-quarter earnings, Hubacheck said.

Drilling is also expected to get under way on Regal Goldfields’ (CDN) diamond-bearing C-14 pipe and A-4 pipes in Clifford and Arnold twps. within a matter of weeks. Both are believed to have an area of about eight acres. Consultant James Tilsley says Regal will use magnetics to determine the number of kimberlitic phases in the A-4 pipe, and then take a separate bulk sample from each phase for a total of 50 tons. Because the C-14 underlies a swamp, Regal will wait for a solid freeze-up before taking a 300-ton bulk sample from the two separate phases of that pipe.

KWG Resources (ME) can earn a 50% interest in Regal’s C-14 and nearby B-30 pipes by spending $3 million by March, 1994. After Regal completes the $250,000 bulk-sampling program on the A-4, Goldhunter Explorations (ASE) has an option to earn a 50% interest in the pipe by making four payments of $250,000 each before the end of 1993. Goldhunter will also issue 50,000 common shares to Regal.

In other diamond developments:

— Shares of Dia Met Minerals (TSE) started trading on The Toronto Stock Exchange on Nov. 9. Dia Met, which recently touched a new high of $26, is rumored to be contemplating a 3-for-1 stock split.

— Claims recorded in Lac de Gras area since Nov. 1, 1991, now cover 14 million acres, says Yellowknife mining recorder Karen Klassen. Another 4,801 claim tags accounting for up to 12 million additional acres have been sold. “The activity is picking up,” Klassen says.

— Of 67 samples taken by Consolidated Newgate Resources (VSE) and Winspear Resources (VSE) on their Courageous Lake property, 25 miles southwest of the Point Lake discovery in the Northwest Territories, 42% yielded pyrope garnets. A total of five airborne targets lie up-ice from these indicator minerals, the company reports.

— Although Kennecott Canada has yet to release results from a summer sampling program on ground held by Bre-X Minerals (ASE), the senior has completed additional till sampling in areas where initial results proved encouraging.

— Rich Minerals (ASE) has applied for the mineral rights to 400,000 acres west of Didsbury, Alta., in addition to the 300,000 acres applied for in August.

— A dozen clear, white, gem-quality diamonds — including two weighing over one carat and one weighing 6.5 carats — have been recovered from several hundred tons of kimberlite taken from the Leicester diamond mine in South Africa, report partners Stow Resources (VSE) and Dryden Resource (VSE). A 10,000-ton bulk sample has been stockpiled and will be processed at a rate of 100 tons per day.