Explosive land grab in N.W.T and Alberta

The area outlined for diamond exploration in the Northwest Territories and Alberta has grown to an estimated 50-75 million acres and there is no sign of a slowdown, local mining recorders say.

At presstime, 17.5 million acres had been staked around Lac de Gras, N.W.T., since November, 1991, and registered with chief mining recorder Karen Klassen. Claim tags representing up to another 22.5 million acres have been sold, and most of the claims will be recorded within the 60-day grace period given to the region’s prospectors, she said.

“We are anticipating that a lot more claims will be recorded between now and the end of December,” said Klassen.

Land acquisition is also picking up in Alberta. Since May, 138 prospecting permits representing 944,223 acres have been issued by the Alberta department of Energy. Applications for another 1,042 permits, representing 30.6 million acres, will be processed if the provincial cabinet accepts a proposal to waive a $10-per-hectare deposit on exploration permits.

The new Alberta figures exclude the 1.5-million-acre block issued to diamond explorer Monopros in 1990 and a 1.5-million-acre block held by joint venture partners Dia Met Minerals (TSE) and Cameco (TSE).

The staking frenzy in the Northwest Territories has been ongoing since Dia Met Minerals (TSE) announced the discovery of diamonds in drill core from the Point Lake pipe in November, 1991.

Further encouraging results have prompted prospectors to expand the area of interest based on new structural theories and the hope that other kimberlite clusters occur in association with the Point Lake cluster.

Although most of the ground will turn out to be caribou pasture, the potential rewards are too great to ignore, observers contend. “Enough people are now convinced that this will be as big as or bigger than any diamond province in the world,” said Edward Schiller, a consulting geologist close to the play. “Gold is flat and base metals and zinc are in the sewer, so everybody’s talking diamonds.”

In Alberta, several juniors have followed Monopros and Dia Met into the Peace River Arch area. Activity is also strong in the south, where two gem-quality diamonds were found on surface in the late 1980s. Lamproite intrusives, which are known to host diamonds in other parts of the world, have been identified near the diamond find.

In other diamond developments:

— Lytton Minerals (TSE) has raised $4.6 million through a private placement of shares and warrants. Proceeds will be used to finance exploration on the company’s claim block north of Lac de Gras.

— Aber Resources (TSE) has raised $4.2 million through the sale of two million common shares at $2.25 per share to European investors. — For additional diamond exploration coverage, see Page 3.