JUNIOR MINING — Kirkland Lake pines for diamonds

The president of a mining company in Kirkland Lake, Ont., has predicted there will be a diamond mine in that camp by the year 2000.

No doubt Carl Forbes would like his company, Strike Minerals (CDN), to be responsible for such a discovery. The company plans to sample its AM-47 pipe and has $1.5 million in place for diamond exploration in the area. Local kimberlites are contained within the Lake Timiskaming structural zone which extends north-northwest through northeastern Ontario and northwestern Quebec, explained Peter Hubachuck, senior geologist with Sudbury Contact Mines (TSE). With results of a 70-hole program pending, Sudbury Contact’s Diamond Lake kimberlite pipe has so far produced 14 microdiamonds, including six of gem quality. And a second pipe has been discovered nearby. The company controls 54,080 acres within the Timiskaming zone, including its Beaverhouse joint venture with Royal Oak Mines (TSE), Queenston Mining (TSE) and Lac Minerals (TSE).

Earlier this year, KWG Resources (ME) had samples of its Bucke Twp. pipe and Guiges, Que. kimberlite processed by Lakefield Research and Melis Engineering. Half of Lakefield’s diamond work this year has come from the diamond play in northeastern Ontario and northwestern Quebec — up 100% over 1992.

Aurora Research’s mobile diamond-recovery laboratory in McGarry Twp. had processed a 47-tonne sample from the A-4 pipe and was running a 123-tonne sample from the C-14 pipe during a recent site visit. It will next run a sample from Regal Goldfields’ (CDN) B-30 pipe. Regal’s 64-claim group contains a known cluster of five kimberlite pipes (A-1, A-4, B-30, C-14 and one known simply as “the banana”). These were previously held by Monopros, Lac Minerals and, more recently, Dia Met Minerals (TSE), the latter retaining a royalty. Historically, the A-4 yielded five microdiamonds and the C-14 eight macrodiamonds. KWG is a joint-venture partner.

Other companies in the local diamond play include

— Goodgold Resources (VSE) and Greater Lenora Resources (TSE), with 86 claims in Eby Twp;

— Gwen Resources (ASE), with kimberlite in its Buffonta pit and 1,400 area claims; and

— T & H Resources (TSE), which is drilling two prospects for kimberlite in Catherine Twp.

Still others include Panthco Resources (CDN), with 51 claims; Findore Minerals (CDN); Pure Gold Resources (TSE); Goldhunter Explorations (ASE); Canadian Giant Exploration (VSE); Glencairn Explorations (ASE); and Wheaton River Minerals (TSE).

Frank Tagliamonte, who has 57 claims in Bisley Twp., reportedly staked the first surface-exposed kimberlite in the area at Coral Rapids in 1965. The Geological Survey of Canada has released subcontracts to the Royal Ontario Museum for chronological dating and to Daniel Shultze of the University of Toronto.

“There is enough encouragement from ongoing work to support further diamond exploration in the area, despite naysayers,” said Michael Leahy, president of the Northern Prospectors Association, based in Kirkland Lake. And with a Monopros representative from Val d’Or, Que., reportedly observing the local play, he may be right.

Meanwhile, despite the current excitement over diamonds, gold and base metals mining continue to form the mainstay of the Kirkland Lake economy. With 38 million oz. gold having been recovered from the area during the past 80 years, the yellow metal has managed to retain its lustre for prospectors. Assessment work in the area, which totalled $5.8 million in 1992 (or 32% of the provincial total), remained on par during the first quarter of 1993. Companies operating gold mills in the camp include

— American Barrick Resources (TSE), which is drilling underground at its Holt-McDermott mine to delineate new reserves in the South zones for possible shaft-deepening;

— Lac, which is continuing underground exploration at its Macassa mine; — St Andrew Goldfields (TSE), which has entered a joint venture agreement to develop Goldpost Resources’ (TSE) Hislop East property; and, — Deak Resources (TSE), which has entered a custom milling agreement with Northfield Minerals (ASE) at Northfield’s Cheminis property, now under development.

Hemlo Gold Mines (TSE), with a strong presence in the area, has entered a multi-phase joint venture with Glimmer Resources (VSE), with an advanced drilling program under way. It is also involved with Canamax Resources (TSE) at the Golden Highway property and is participating in a joint venture drilling program on Lenora’s Omega property. The most advanced of Hemlo’s prospects in the area is the $12-million Holloway project, involving partners Freewest Resources (TSE) and Teddy Bear Valley Mines (CDN). Shaft-sinking is complete and a 1,100-metre lateral development program is under way in conjunction with a 25,000-metre drilling program.

Queenston Mining (TSE), with major holdings in the Kirkland Lake area, has joint-venture agreements with Lac and Inco (TSE). The company recently reached agreement-in-principle with Cyprus Canada on Queenston’s Amalgamated property. Two other Queenston prospects are the Upper Beaver Mine gold-copper project with Royal Oak Resources and the Robertson copper-zinc property with Falconbridge. Robertson is 60% owned by Queenston, 40% by Strike Minerals. In another base metal play, Mountain Lake Resources (VSE) has a joint venture agreement with Minnova (TSE) on a copper-zinc-gold property in Ben Nevis Twp. — William Glover resides in Kirkland Lake, Ont.