EXPLORATION ROUNDUP — Diadem Res. drills in three countries

With drilling programs under way in three countries, Diadem Resources (DIR-M) expects to be generating a steady stream of results from base metal projects in Quebec, a diamond project in California and several gold and base metal projects in Indonesia.

The junior recently reported a zinc discovery at its Pekan River project in Quebec, made by field personnel involved in drilling a nearby body of copper-nickel-cobalt mineralization. The zinc mineralization was found near the eastward-dipping lower contact of a marble horizon.

Eleven holes have partially tested an area 300 metres long and 150 metres downdip, with 10 holes encountering coarse zinc sulphide mineralization.

Highlights include: 4 metres of 2.65% zinc; 6 metres of 3.12% zinc; 3.5 metres of 3.66% zinc; 10 metres of 3.41% zinc; 6 metres of 3.2% zinc; and 4.5 metres of 3.67% zinc.

Diadem says the host rock sequence that includes the zinc discovery was mapped for 11 km. More results are expected shortly.

Results are also awaited from a mini bulk sample taken from Diadem’s diamond project in eastern California. The junior can acquire a 55% interest in the Leek Springs project in Eldorado Cty., and also has an option to acquire a 60% interest in the Rancheria project in nearby Amador Cty.

Diadem President Peter Howe said the company was drawn to these regions by reports of diamond discoveries made in rivers during the California gold rush.

Diadem’s initial drilling at Leek Springs returned diamond fragments (234 shards with a total weight of less than one carat from 200 lb. of drill material) in breccia rock. Since then, 25 tonnes of this material have been mined and sent to a diamond processing plant in Colorado.

John Ryder, California project manager, said the composition of the breccia bodies appears to be similar to that of the Argyle lamproite in Australia.

“But the indicator minerals appear to be more similar to kimberlites,” he told shareholders at Diadem’s annual meeting.

The Rancheria project is less explored and is considered prospective for both gold and diamonds.

In Indonesia, Diadem is participating in nine projects, including: lode and placer gold on the island of Kalimantan; base metals, tin and gold on the island of Belitung; and gold on the island of Java.

On Belitung, drilling is under way on the Tikus contract of work (CoW) in an effort to confirm a polymetallic deposit previously developed for tin and tungsten. More than 2 million tonnes averaging in excess of 2% combined tin (60%) and tungsten (40%) were outlined by a previous operator; this material is minable by open-pit methods.

“Our goal is to find an even larger body,” Howe told shareholders.

Diadem has a 30% interest in Tikus and is participating in a joint venture with Bresea Resources (BSR-M) and PT Gunung Ki-kara Mining, which own 60% and 10%, respectively.

Diadem also has a 30% interest in the Kelapa Kampit operation, originally mined by Billiton Mining for tin from 1906 until the outbreak of the Second World War. BHP later took on the project and mined tin from 1975 to 1983, during which time it found three zinc-lead-silver zones parallel to the tin zone.

Base metals are the main attraction at this CoW, also on Belitung Island, in which Bresea again holds a 60% interest. Bre-X Minerals (BXM-T) is operating the work program.

Upgraded deposit

Estimates suggest Kelapa Kampit contains a potential 75 million tonnes. The zinc-lead-silver zone occurs in sedimentary beds with an indicated strike length of 7 km and zones (within the beds) ranging up to 20 metres wide.

Drilling has returned grades of 10.6% zinc and 7.7% lead over 10-metre widths. Diadem notes that the adits driven to develop the tin zone averaged 24% combined zinc-lead, or twice the average of the previous drill results.

Elsewhere on Belitung Island, exploration is planned for the Lilangan epithermal gold prospects, some of which were previously worked by artisanal miners. Diadem has a 30% interest in the joint venture, with Bresea holding 60%.

In Kalimantan, Diadem is participating in four gold projects, all of which were selected by the same geological team that discovered the Mirah, Mt. Muro and Busang deposits.

Howe said trenching is under way at Mirah N.E., and results should be in hand soon from early-stage work at the Upper Mahakam A and B projects.

Diadem has a 30% stake in three of the Kalimantan projects and has farmed out to Waseco Resources (WSCO-C) its right to earn a 90% interest in the fourth.

(Diadem owns 46% of Waseco’s shares.)

Diadem and Waseco are also partners at the Tewah alluvial deposit, on the Kahayan River in Kalimantan, which is reported to host an estimated resource of 450 million cubic metres averaging 0.2 gram gold per cubic metre. By March 1997, the companies expect to have completed a feasibility study and purchased a dredge.

Through Waseco, Diadem has exposure to two projects in Java, where programs are aimed at finding deposits similar to the producing Pongkor gold mine.

The Tikukur gold property is immediately south-west of the Cikondang mine property and has been identified by the state-owned mining company as a priority area for repetitions of Pongkor-style mineralization. Waseco can earn a 70% interest by funding the project through to feasibility.

The second Java property, Walang, is on the north-western margin of the Bayah Dome in west Java. It was selected to cover extensions of epithermal gold veins discovered on an adjoining property. Waseco has a 45% interest in this joint venture, while an Indonesian partner holds 10% and Blue Emerald Resources (BER-V) holds a 45% stake.