Last year’s discovery of diamondiferous kimberlite pipes on Victoria Island in the new Canadian territory of Nunavut has spurred
The 212,200-sq.-km island, situated in the Arctic Archipelago, represents the northern extension of the Archean-aged Slave craton, also host to the Ekati diamond mine and the Diavik project.
Since 1994, the area has been explored by Monopros, the Canadian exploration arm of
Several kimberlites on a neighbouring property, wholly owned by Monopros are said to be diamond-bearing as well, and Hawkeye reports that as many as 12 diamond-bearing kimberlites have been found in the region.
Recently, Major General and Ascot tabled more diamond count results from the Snowy Owl kimberlite.
Monopros, stands to earn a 51% interest in the 2-million-acre property in return for cash payments and exploration expenditures over three years. Once Monopros has vested its interest, Ascot and Major General will each own 24.5%.
Acid digestion analysis was performed on 438 kg of kimberlite at De Beers’ lab in South Africa. The sample contained 418 kg of drill core from four drill holes, as well as 20 kg of chips obtained from the 1998 percussion drill program.
The analysis yielded 790 diamonds, which averages 1.8 diamonds per kg of sample.
One 22-kg sample from hole 128 yielded 417 microdiamond fragments, which could have resulted from the accidental crushing of a larger stone. Four of the diamonds from that sample batch were classified as macros. (Monopros defines a macro as equal to, or greater than, 0.5 mm in at least one dimension.)
The kimberlite drill core samples from which the analysis was made were distributed evenly throughout the portion of the Snowy Owl Kimberlite drilled to date.
Previously reported diamond counts from the kimberlite yielded 90 micros from an 88-kg sample.
The Snowy Owl pipe exhibits both volcanic crater and hypabyssal facies material. The presence of the crater facies suggests that the upper portion of the kimberlite body is present and that much of the original kimberlite should be preserved at depth.
Kelowna-based Dia Met Minerals has recently teamed up with Major General and Ascot to acquire a 51% operating interest in a large portion of the land holdings.
The properties are adjacent to, and partly surround, the discovery claims held by the Monopros/ Major General/Ascot joint venture.
According to the agreement, Dia Met stands to earn a 51% operating interest in the properties by spending a total of $7 million over five years and making a one-time cash payment of $32,500 when the deal closes.
The properties optioned consist of three separate blocks of staked claims and prospecting permits, equivalent to 2,608 sq. km (644,300 acres). One of the properties, known as the Mariner Group, comprises 651 sq. km (161,000 acres) and is shared 50-50 by Major General and Ascot. The remaining properties are wholly owned by Major General.
Dia Met must spend $2.5 million over five years to vest its 51% interest in the Mariner claims. The company is committed to spend at least $300,000 by April 30, 2000, and pay $8,126 cash to the vendors upon signing the agreement. Once Dia Met has completed the earn-in, Major General and Ascot will both hold a 24.5% interest.
The 483,509-acre Home Run property will cost Dia Met $4.5 million over a 5-year period. Dia Met is required to spend $200,000 on the property by April 30, 2000, and pay Major General $24,343 in cash when the deal closes. Once the earn in is complete, Dia Met will hold a 51% stake and Major General, the remainder.
Although the Arctic exploration season is winding down, Dia Met plans to squeeze in a short field program of glacial till and esker sampling in areas with high-priority targets. A low-level aeromagnetic survey is also in the works.
Meanwhile, Hawkeye Gold has inked a deal with Major General to acquire up to a half-interest in the 90,000-acre Yankee property, just 15 km from the five diamodiferous pipes discovered to date on Victoria Island.
Hawkeye can earn a 33.3% stake by issuing 100,000 shares to Major General in two stages and making a one-time cash payment of $70,000. The junior is also required to spend at least $2 per acre on exploration, which works out to $180,000 over the course of the next year.
Monopros maintains a 30-day back-in right, which, if exercised, would dilute Hawkeye’s interest to 16.3%. Hawkeye’s spending obligations would fall in proportion to its new interest.
Monopros’s back-in right falls under an agreement made last September when Ascot and Major General augmented their land position by staking an additional 160,000 acres adjacent to the Victoria Island property. According to that agreement, the claims that fall within 5 km of the Victoria Island property boundary are subject to the Monopros’s earn-in right.
If Monopros does not exercise its back-in option on the property, Hawkeye will maintain its 33.3% interest, along with the right to boost its interest to 50% and become the operator by issuing an additional 50,000 shares to Major General.
The Hawkeye property is said to host several favourable targets, with remote-sensing analysis having identified large structural intersections on the southwestern portion. Studies indicate there is a relationship between dense intersections of linear features and the occurrence of kimberlite pipes. Numerous sub-circular structures have been identified, similar to structures in the Lac de Gras diamond discovery area.
Hawkeye also reports that a geophysical survey has identified a 400-metre-wide bull’s-eye magnetic anomaly on the northeastern portion of the property.
Over the next few months, the junior will perform satellite imagery analyses of all small structures, as well as re-interpret and re-process geophysical data in an effort to define further drill targets.
Hawkeye’s medium- and long-term exploration plans include a low-level, closely spaced, aerial magnetic survey and a program of heavy-mineral till sampling. The company hopes to initiate a drill program by the second quarter of 2000.
The junior has 2.9 million shares fully diluted and is looking for financing opportunities.
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