MINING MARKETS & INVESTMENT NEWS – QUERY — A thriftier Cypango still chasing kimberlites in NWT

I am seeking information on a Northwest Territories diamond exploration company called Cypango Ventures. The company holds a large land position neighboring Dia Met Minerals’ diamond discovery. I am finding it difficult to obtain information about near-future projects Cypango is involved with.

John Ruberto

St. Leonard, Que.

Of late, Cypango Ventures (CAV-V) has tightened its belt and focused its efforts on the ZL diamond property in the Lac de Gras region of the Northwest Territories.

The 133-claim ZL property represents one of six claim blocks that combine for 728,000 ha. The company holds a 90% interest in all of the blocks, with the remaining interest in the hands of privately held Inukshuk Capital.

Cypango plans to contract out this season’s exploration work and is currently looking at proposals.

The Vancouver-based junior has chased a 15-km-long mineral-dispersion train made up of picroilmenites, chrome spinels and pyrope garnets — all diamond indicators — and has chosen a small target area for more detailed sampling.

Up-ice till sampling narrowed the source of the mineral dispersion train to within 1 sq. km. The company now plans to complete a detailed sampling program in order to delineate possible kimberlite targets for drilling.

Follow-up sampling will be taken further up-ice from the target area to confirm the apex of the known mineral-dispersion train and test for other trains.

The second phase of the exploration program will consist of ground geophysical surveys to further define drill targets, leaving exploration drilling for the third phase.

The company is assessing its financial situation and budgeting exploration expenditures accordingly.

“Basically, our land holding will be significantly reduced,” says President Michael Sweatman. “We just don’t have the money to do the exploration required to maintain all of them. Our corporate focus right now is to trim back our holdings to a more manageable size so we can handle them in this market where nobody can raise any money.”

The company also holds an 80% interest in the 62,000-ha Yamba Lake claim block, with the balance split evenly between Tanqueray Resources (TQY-A) and Mill City Gold Mining (MIY-V). Cypango has completed its exploration requirements on the Yamba Lake claims up to October 1999 and is discussing plans for the project with its joint-venture partners.

Cypango has about 16 million shares fully diluted.